How To Register My Business Name In Michigan

Here are the basic steps you'll need to accept to beginning a limited liability visitor (LLC) in Michigan.

A limited liability company (LLC for short) is a way to legally structure a business. Information technology combines the express liability of a corporation with the flexibility and lack of formalities provided by a partnership or sole proprietorship. Whatever business owner who seeks to limit his or her personal liability for business debts and lawsuits should consider forming an LLC.

Steps to form an LLC in Michigan Here are the steps to start an LLC in Michigan:

Choose a name for your Michigan LLC
Appoint a registered amanuensis
File Articles of Organization
Fix an Operating Agreement
Get an EIN & comply with other tax & regulatory requirements
File annual statements

one. Choose a Name for Your Michigan LLC

Your LLC's proper noun must be distinguishable from the names of other business entities already on file with the Michigan Department of Licensing and Regulatory Affairs. Yous can check names for availability by searching the Michigan business database. You can reserve a proper name for half dozen months by filing an Application for Reservation of Name with the Michigan Department of Licensing and Regulatory Diplomacy. You can mail the application or file online. The filing fee is $25.

Nether Michigan law, an LLC proper name must incorporate the words:

Express Liability Visitor
L.L.C., or
LLC.

Using an Causeless Name

Yous don't take to use your LLC'southward official legal name registered in your Manufactures of Organisation when yous do business out in the existent world. Instead, you can apply an assumed proper noun, also called a fictitious business proper noun, "DBA" (short for doing business organization as), or trade proper noun. To do and so in Michigan, yous must annals your assumed name with the Michigan Section of Licensing and Regulatory Diplomacy. You annals by post by filing a Document of Assumed Proper noun. The filing fee is $25. The registration is good for five years. For more on registering business organization names, meet Nolo'due south article How to Register a Business organization Name.

2. Appoint a Registered Agent

Every Michigan LLC must have an amanuensis for service of process in the state. This is an private or business entity that agrees to accept legal papers on the LLC's behalf someone sues the visitor. A registered agent may be a Michigan resident, a Michigan corporation, a foreign corporation with a document of authority to transact business in Michigan, a Michigan LLC, or a strange LLC authorized to transact concern in Michigan. The registered agent must accept a physical street address in Michigan.

3. File Manufactures of Organization

You can create a Michigan LLC past filing Articles of Arrangement with the Michigan Department of Licensing and Regulatory Affairs. The manufactures must include:

the LLC's name
the LLC'southward purpose
whether the LLC'due south duration volition be perpetual or for a specified period
the proper noun and address of the LLC's registered amanuensis
the effective date of filing the Articles if later on than the date of filing, and
signature and phone number of the LLC's organizer.

The articles may be filed by post or online. The filing fee is $50.

iv. Ready an Operating Agreement

An LLC operating agreement is not required by the state of Michigan, but information technology is highly recommended. The agreement is an internal document that establishes how you will run your LLC. It sets out the rights and responsibilities of the members and managers, including how you volition manage the LLC. It can also help preserve your limited liability by showing that your LLC is truly a carve up business entity. In the absence of an operating agreement, country LLC constabulary will govern how your LLC operates.

v. Get an EIN & Comply With Other Tax & Regulatory Requirements

Additional taxation and regulatory requirements may apply to your LLC. These may include the following:

EIN: If your LLC has more than one member, it must accept an IRS Employer Identification Number (EIN), even if it has no employees. If you form a one-member LLC, you lot need an EIN only if your company will have employees or you elect to have it taxed every bit a corporation instead of a sole proprietorship (disregarded entity). You may obtain an EIN by completing an online awarding on the IRS website. In that location is no filing fee.

Business organisation Licenses: Depending on its type of business and where information technology is located, your LLC may demand other local and country business licenses. For local licenses, cheque with the clerk for the city or town where the LLC's master place of business is located (or county if it is in an unincorporated area). For state license information, check State License Search at the Land of Michigan website. For more than information, see How to Go a Minor Business organisation License In Michigan.

Department of Treasury: If you have employees or volition be selling goods and collecting sales tax, you'll need to register with the Michigan Department of Treasury (DOT). You lot can annals online using the DOT's e-Registration awarding or past mail service. For more information on state LLC tax registration, check out Michigan LLC Annual Filing Requirements.

6. File Annual Statements

All LLCs doing business in Michigan must file an annual statement with the Department of Licensing and Regulatory Affairs. The report must be filed by February 15 after the twelvemonth of formation or qualification. However, if you form your LLC afterward September 30, you exercise not demand to file a argument the following February. For case, if yous form your business on Nov one, 2020, your first almanac statement will be due by February fifteen, 2022.

The country mails a pre-printed annual statement, BCS/CD-2700, to the LLC'southward resident agent at the registered office approximately three months prior to the due engagement. Yous can file the study online or by mail. The filing fee is $25.

The Pros and Cons of Forming an LLC

While LLCs are a popular selection for new and small-scale businesses, the entity is not the best option for every enterprise. Before you class your LLC, consider the benefits and drawbacks of the entity.

I advantage of LLCs is that they are relatively elementary to form and maintain. The entity provides the owners with limited liability protection, laissez passer-through tax, and flexibility in terms of management and profit-sharing. For more than information, run into Advantages of an LLC.

The downsides are that, compared to a sole proprietorship, you will face up more than paperwork and fees to start and manage an LLC. In addition, corporations are typically a better fit for businesses that want to attract investors and pursue tax deductions for employee benefits. To acquire more, see Corporations and S Corporations vs. LLCs.