LLC formation in Michigan is easily. equitable follow these eight steps, and you ‘ll be on your way .
1. Name Your Michigan LLC
You ‘ll need to choose a name to include in your articles before you can register your LLC.
Reading: How to Start an LLC in Michigan
Names must comply with Michigan ‘s diagnose requirements. The following are the most authoritative requirements to keep in mind :
- Your business name must include the words Limited Liability Company, LLC, or L.L.C.
- Your name must be different from an existing business in the state. You can do a search on the Secretary of State’s website to determine if a particular business name is in use. For name availability in Michigan, check this link.
- The business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.)
- Certain restricted words (bank, lawyer, attorney, credit union, etc.) may require additional documentation and licensure paperwork.
See a dispatch list of Michigan ‘s diagnose rules .
- URL availability. Even if you don’t think you’ll need a webpage, you probably will. At the very least, you should reserve the option of having one in the future by buying your domain name now. Before finalizing your LLC name, it’s a good idea to check if the URL is available.
- Reserve your name. If you aren’t ready to register your LLC but are concerned your name might be taken by someone else, you can reserve it for a small fee. In Michigan, names may be reserved for up to 6 months by paying the fee and submitting the proper form to the state authority.
2. Choose Your Registered Agent
Michigan requires you to appoint a file agent for your LLC .
A register agent is the person or entity authorized to receive service of work and other official legal documents and notices on behalf of your LLC .
A register agent can be a person ( including yourself or an employee of your LLC ) or an entity that offers a cross-file agent service. They must meet the adopt criteria :
- Entities (or companies) must provide registered agent services.
- Must be 18-years-old.
- The agent must have an address in Michigan.
- The agent must be on-site and available to accept documents during regular business hours.
3. Prepare and File Articles of Organization
The Articles of Organization is a document that formally establishes your LLC by laying out basic information about it .
Prepare Articles of Organization and file them with the Michigan Corporation Division to register your Michigan LLC properly. Though it sounds like a big subcontract, that merely means filling out a relatively bare on-line class and submitting it. You can besides send it by mail .
To prepare your articles, you ‘ll normally need the stick to information :
- Your LLC name.
- The name and address of your registered agent.
- A reason why you formed the LLC. This can be a general statement.
- An LLC’s duration or time period over which the LLC will exist. In most cases, LLCs are perpetual, meaning the duration is indefinite. A perpetual LLC can be dissolved voluntarily or involuntarily. If your LLC exists for a purpose that will end at a specified date, you will specify that date here.
- The person forming the LLC is required to sign the Articles and provide his or her name, signature and contact information.
- Other additional provisions.
once you file your Articles, the repository of submit will review the filing. If the articles are approved, the LLC becomes a legal business entity .
4. Receive a Certificate From the State
The state will issue you a certificate that confirms the LLC formally exists after the LLC ‘s formation documents are filed and approved .
This certificate will allow the LLC to obtain an Employer Identification Number ( EIN ), business licenses, and commercial enterprise bank explanation .
5. Create an Operating Agreement
An function agreement is a document that outlines the way your LLC will conduct business .
Whether or not your submit requires it, an operate agreement is an necessity part of your business. Having a promptly accessible, written operate agreement is helpful for versatile reasons, including settling disputes that may arise over fiscal agreements and other potential litigation. Without an agreement in place, the courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members .
The operating agreement can include, but is not limited to, the succeed :
- LLC’s name and principal address
- Duration of the LLC
- Name and address of the registered agent
- Information about the Articles of Organization
- Purpose of the business
- Members and their contribution
- The way profits and losses will be divided
- Procedure for admitting new members, as well as outgoing members
- Management of the LLC
- Indemnification and liability clauses
6. Get an Employer Identification Number
The nine-digit Employer Identification Number ( EIN ) is assigned by the Internal Revenue Service to identify your LLC for taxes. You can obtain your EIN by mail or on-line through the IRS .
The purpose of an EIN is to assist with the follow :
- File and manage taxes at the state and federal level
- Open a business bank account.
- Hire employees.
7. Comply with Employer Obligations
- Employer must report employees: Employers must report new employees to the government within 20 days of their hire date.
- Employer is required to withhold taxes: In Michigan, employers are required to withhold federal, state and local income taxes from their employees’ wages and forward what is collected to the government.
- Employer must pay unemployment taxes: Employers in Michigan must pay taxes to the state unemployment fund.
- Employer must buy workers compensation insurance: In Michigan, employers must purchase workers compensation insurance for work-related injuries.
8. Obtain Business Licenses
- Certain industries may require a business license. Conduct a business license search to determine if it is required for your industry
- City or counties may require a business license to operate your LLC.
- If the LLC is a retail business, a sales tax license may be required.
Registering your LLC gives you a legal basis to conduct occupation. plan to keep your LLC compliant and in active condition on the department of state ‘s web site .
Michigan LLC ‘s must regularly file an annual Statement ( besides called “ Annual Report ” in other states ) every year. The statement is due on the 15th of February every class. Michigan LLC ‘s may be required to make quarterly tax payments. You besides need to maintain a registered agent for your business .
A registered LLC besides makes it potential for you to do the follow :
- Obtain permits or licenses necessary to operate your business, including health department permits, zoning permits, home occupation permits, professional licenses, and more. Some states require a seller’s permit to conduct sales.
- Register your business with the state’s tax agency.
- Open a business bank account.
- Apply for a business credit card.
- Purchase insurance for your business.
- Protect your name and logo with a trademark.