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How to Start an LLC in Michigan

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There are so many opportunities to start a business in Michigan, but regardless of the nature of your business, starting an LLC in Michigan will offer you considerable advantages. 

An LLC or limited liability company offers liability protection and also gives you many tax benefits. If you’re not sure where to start, read on to learn all the steps you’ll need to follow to start an LLC in Michigan. 

Name Your Business

The first thing you must do to start an LLC in Michigan is to name your business. The state has a set of naming requirements that must be followed. 

For starters, the name should contain “limited liability company” where limited and company may be reduced to ltd and co, respectively. You may also add LLC or L.L.C. to the name. 

Make sure your business name is different from any existing business in Michigan. You can check the availability for names here. 

Brand Your Business with a Logo

Once your business has a name, you can brand it with a logo. It is best that you hire a professional designer to create your logo. 

You can get a logo designed for cheaper from freelancing platforms, such as Fiverr and Upwork. 

Appoint a Registered Agent

The next step is to choose a registered agent for your business. A registered agent can be anyone; even you can become a registered agent for your LLC. It can also be an employee of your LLC or an entity that offers such services. 

The role of a registered agent is to receive all legal documents and notices on behalf of your LLC. However, the agent must be:

  • At least 18 years old

  • Have a street address located in Michigan

  • Must be available during business hours at the registered address to receive any documents or notices

File Articles of Organization

To start an LLC in Michigan, you must file your Articles of Organization. Once you’re done with this step, your LLC will be officially registered. 

It is a relatively simple process and only requires you to fill out an easy online form. You can locate the form here. 

To complete the form, you will need the following: 

  • Your business LLC name

  • Name and address of the appointed registered agent

  • A general statement for why you formed an LLC

  • The duration of your LLC if it is not perpetual

  • Name, signature, and contact details of the person forming the LLC

Once you submit the form, it will be reviewed by the secretary of state, and if there aren’t any issues, your LLC will be formally established. 

Obtain Your Certificate

After the approval of your Articles of Organization, the state will issue you a certificate that confirms the formation of your LLC. 

This certificate will help you attain your EIN and business license. Additionally, it will also allow you to open a bank account for your business. 

Form an Operating Agreement

An operating agreement clearly defines how your LLC will work. This is not a requirement in Michigan, but an operating agreement is highly recommended. 

It helps settles disputes over litigations and financial agreements. If you don’t have one, then the court determines an agreement based on the state’s law which may not always turn out in the LLC’s favor. 

Here’s what’s included in an LLC: 

  • The name and address of the LLC

  • The term of the LLC (if it isn’t perpetual)

  • Details regarding the LLC’s Articles of Organization

  • The underlying purpose of your business

  • Members of your LLC and their roles 

  • A detailed plan about how the LLC’s profits and losses will be divided among members

  • The procedure followed for onboarding and releasing members

  • Management of the LLC, whether it would be member-managed or manager-managed

Receive Your Employer Identification Number

The Employer Identification Number (EIN) serves multiple purposes. The 9-digit figure identifies your business LLC for taxes. The IRS generates it. 

All your taxes at the state or federal level are managed via the EIN. Moreover, it also helps with opening your bank account and enables you to hire employees for your Michigan LLC. 

Follow All Employer Obligations

You must follow certain employer obligations when starting an LLC in Michigan. For starters, all new employees must be reported to the government within 20 days of their hiring. 

Additionally, you must withhold state and federal taxes from the employee’s wages and forward the collected amount to the government.

As per Michigan state law, employers are required to get worker’s compensation insurance to pay for any work-related injuries sustained by employees. 

Get Your Business License (If Necessary)

Typically, the business license requirements vary from business to business. You can contact the state license department to determine whether or not your LLC needs a license for operation. 

However, if you’re in the retail business, you will need a sales tax license. 

Create a Website

After you have an established LLC in Michigan, it is important that you create a website for your business to make it more approachable. Almost all businesses need a website these days. 

But instead of a slow-loading webpage that is difficult to navigate, you should opt for a professionally designed business website that enhances user experience. 

While many service providers offer such services, Trady.com can create a website for you at an affordable pricing plan. 

Market Your Business

Every business needs to be marketed to expand customer outreach. Marketing spreads business awareness and allows you to generate more leads. 

Today, social media marketing and search engine optimization are considered the best practices to reach the target audience.

Trady.com can help you with marketing as well. Whether you want to follow a specific plan or need us to come up with one, we offer both services. Our marketing tactics will surely help you gain new customers.