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Guidelines for Establishing an LLC in Michigan

February 22, 2025Workplace4091
Guidelines for Establishing an LLC in Michigan Michigan law requires a

Guidelines for Establishing an LLC in Michigan

Michigan law requires a specific process to establish a Limited Liability Company (LLC). This guide will walk you through the essential steps necessary to form an LLC in the state of Michigan.

Part 1: Planning Your Business

1. Choose Your Business Name

Name selection is the most critical part of LLC establishment. Michigan allows the use of certain suffixes for your company name. Choose from the following:

L.L.C. LLC L.C. LC Limited Liability Company

Once you have a name in mind, check its availability using the Michigan LLC Name Database. To reserve your name, file an application with the Michigan Department of Licensing and Regulatory Affairs’ Bureau of Commercial Services. This process can be done online or by mail, and costs $25 for name reservation which is valid for up to six months.

2. Create an Operating Agreement

Although not mandatory, an operating agreement is highly recommended. This document outlines the business structure and operations. It is an essential contract between members and can be filed at the time of initial application.

3. Appoint a Registered Agent

Michigan LLCs must appoint a registered agent upon formation. This individual is responsible for receiving notifications and legal processes on behalf of the business. Be sure to provide this agent with all necessary information to pass on to the company.

Part 2: Filing for Your LLC

1. Fill in Michigan Articles of Organization

To formally establish your LLC, you must file a Michigan Articles of Organization. Ensure all fields are completely filled. If you need assistance, consult a legal advisor.

2. Recognize Whether You Need to File for a PLLC

If your business involves professions including dental, medical, religious, or legal services, you must file for a Professional Limited Liability Company (PLLC). The name should end with 'PLLC' or 'P.L.C.' instead of 'LLC'. This form is appropriate for legal, medical, and other professions.

3. Send in Your Articles of Organization

After completing the forms, send them to the Michigan Department of Licensing and Regulatory Affairs. Payment of $50 via check to “State of Michigan” is required. The mailing address is: Michigan Department of Licensing and Regulatory Affairs, Securities - Commercial Licensing Bureau - Corporations Division, P.O. Box 30054, Lansing, MI 48909. Alternatively, you can deliver the documents in person at 2510 Woodlake Circle, Okemos, MI. Payment methods include check, money order, VISA, and Mastercard.

4. Expedited Services

If you need faster processing, you can opt for expedited services. You will need to fill out the expedited service form and include the appropriate fees. Processing times vary from same-day to one hour, depending on the service level chosen.

Processing times for expedited services:

Same-day: Required by 1PM, $100 Two-hour: Must be received by 3PM, $500 One hour: Must be received by 4PM, $1000

Part 3: Taking Other Steps

1. Wait for a Response

You will receive your LLC certificate within 3 to 10 business days, or faster if expedited services were chosen. The document will be sent to the address you provided. Once your LLC is formed, provide the necessary information to your bank to open a business account.

2. Apply for an EIN Number

A federal employer identification number (EIN) is required for tax purposes. If your LLC has multiple members, an EIN is legally required. You can apply for an EIN through the IRS website.

3. Apply for Business Licenses

Depending on your business type and location, you may need to obtain additional local or state licenses. Consult the Michigan Department of Licensing and Regulatory Affairs for a list of required licenses.