This guide will walk you through everything you need to do to set up your LLC in Michigan.
1. Choose a name for your LLC
Your LLC name must include the phrase “limited liability company” or the abbreviations “LLC” or “L.L.C.” It cannot include words that would confuse your LLC with a government agency (e.g., FBI, Treasury, State Department, etc.) or a corporation (Inc., Corp., Ltd., etc.).
You can check to see if your desired name is available by searching the Business Entity Database on the Michigan Department of Licensing and Regulatory Affairs website. Keep in mind that you may also need to register your LLC name as a trading name if you plan to do business under a name that is different from your legal LLC name.
2. Appoint a registered agent
Every LLC must have a registered agent—an individual or business entity that agrees to accept service of process on behalf of your LLC in the event that it is sued. The registered agent must have a physical street address in Michigan and be available during normal business hours. You can appoint yourself as the registered agent for your LLC as long as you meet the requirements listed above.
3. File articles of the organization
To form an LLC in Michigan, you must file articles of organization with the Corporations Division of the Michigan Department of Licensing and Regulatory Affairs (LARA). The articles of organization must include:
- The name and address of your LLC
- The name and address of your registered agent
- The duration of your LLC (if not perpetual)
- The names and addresses of each organizer
There is no filing fee for articles of organization in Michigan. You can file online, by mail, or in person at the LARA office in Lansing, MI.
4. Draft an operating agreement
An operating agreement is not required by Michigan law, but we recommend that all LLCs have one. This document outlines the ownership interests, roles, and responsibilities of each member, how profits and losses will be allocated, what will happen if a member leaves the LLC, and other important details about running your business. Having an operating agreement helps prevent disagreements down the road and makes it easier to keep your business running smoothly.
5. Obtain any necessary licenses and permits
Depending on what type of business you are starting, you may need to obtain certain licenses and permits before you can begin operating in Michigan. For example, businesses that serve food or alcohol will need to obtain the appropriate permits from their local health department; businesses that sell certain types of products will need special permits from their city or county; businesses that offer professional services such as engineering or accounting will need to be licensed by their state board; etc. Contact your local chamber of commerce or visit www.[yourcity/county].gov for more information about which licenses and permits apply to your business type in your area . . . [additional content here as needed]
6. Open a business bank account
After you have formed your LLC and obtained any necessary licenses/permits, it’s time to open up a separate bank account for your business—preferably at a local credit union or community bank where you can develop a personal relationship with bankers who understand small businesses like yours.[additional content here as needed] Conclusion: Forming an LLC in Michigan is relatively simple and inexpensive compared to other states—plus it offers personal liability protection for its owners (known as “members”). Follow these six steps and you’ll be on your way to starting a successful Michigander-owned business! [Include CTA here such as “Need help forming an LLC? We can do it for you! Learn more about our services here.]”