Michigan LLC formation costs

Michigan makes LLC formation remarkably affordable with a $50 state filing fee that ranks among the lowest in the nation. Unlike states that hit you with franchise taxes, publication requirements, or expensive initial reports, Michigan's transparent cost structure lets you budget accurately from day one.

The real advantage extends beyond formation—Michigan doesn't impose annual franchise taxes like California's $800 minimum or Delaware's $300 fee. Your primary ongoing expense is just a $25 annual statement, making Michigan one of the most cost-effective states for long-term LLC operations.

Required Michigan LLC formation costs

Michigan's formation requires only three essential expenses before your business can legally operate:

Optional formation costs

Michigan's optional services can streamline your formation process and provide valuable protection, but they're not legally required. Consider these based on your business complexity and available time.

1. Professional services

These services range widely in scope and cost. Business attorneys charge $500-$1,500 for comprehensive formation assistance, including custom operating agreements and compliance guidance. Accountant consultations for tax planning typically cost $150-$500 and often prevent costly mistakes at tax time. Online formation services offer packages from $0-$300+, including registered agent services and compliance tracking.

2. Additional filings

The filings covered below typically appear only when you need them. However, they can disrupt your timeline if not budgeted properly. 

• Name reservation fees cost $25, securing your chosen name for six months if you need extra time to prepare formation documents
• Michigan offers several expedited processing options when timing is critical: 24-hour service for $50, or premium 1-hour service for $1,000
• DBA registration costs $25 statewide
• Certified copies cost $10 each when banks or lenders need verification of your LLC's existence
• Your EIN remains free when obtained directly from the IRS

Local licensing creates variable costs, ranging from $50 for basic business operations to $300+ for specialized industries requiring permits or professional credentials.

Ongoing annual costs for Michigan LLCs

After formation, Michigan LLCs face minimal recurring expenses compared to most states, making it an attractive jurisdiction for long-term business operations.

• Michigan annual statement: Due annually by February 15th ($25 online, $25 by mail) with late penalties of $50 for non-compliance
• Michigan franchise tax/annual fee: Michigan imposes no franchise tax on LLCs, providing significant cost advantages over states like California ($800 minimum) or Delaware ($300 annual tax)
• Registered agent fees: $100-$150 annually if using a professional service, though you can serve as your own agent at no cost
• Local business licenses: Annual renewals vary by municipality and industry, typically ranging from $50-$300 depending on your business type and location
• Professional services: Accounting and legal support as needed, with annual tax preparation ranging $500-$1,500 for small businesses

Michigan's lack of franchise taxes and minimal reporting requirements creates substantial long-term savings. While states like California impose $800 annual minimum franchise taxes regardless of revenue, Michigan LLCs pay only the modest $25 annual statement fee to maintain good standing.

FAQs about LLC formation costs in Michigan

Are there any hidden fees when forming an LLC? 

Michigan stands out for its transparency—no publication requirements, franchise taxes, or surprise compliance costs. The main "hidden" expenses come from local business licenses and optional registered agent services.

Can I get a refund if my filing is rejected? 

No, Michigan doesn't refund filing fees once processing begins. However, you can file amendments for $25 if your original Articles of Organization require corrections.

Can I avoid registered agent fees legally? 

Yes, you can serve as your own registered agent at no cost if you maintain a Michigan address and are available during business hours. Professional services provide privacy and reliability for $100-$150 annually.

Simplify Michigan LLC formation costs with Discern

Discern automates Michigan formation filing, handles annual statement submissions, and provides registered agent services with transparent pricing that scales with your business needs.

Book a Discern demo today and discover how we handle formation filings and ongoing compliance with ease.