What are the requirements for Michigan LLCs?

Michigan requires specific legal steps to create a valid LLC. You'll need a unique name with proper designators, a Michigan-based registered agent, and properly filed Articles of Organization using Form CSCL/CD-700.

Missing any requirement triggers rejected filings that waste your $50 filing fee and delay formation. Administrative dissolution follows continued noncompliance, effectively shutting down your company and exposing members to personal liability for business debts.

1. Name requirements

Your Michigan LLC name must include "Limited Liability Company," "LLC," "L.L.C.," "LC," or "L.C." Michigan rejects filings without these mandatory identifiers, so verify your name includes proper designation before submission.

The name must be "distinguishable" from every business registered in Michigan's database. Check the Department of Licensing and Regulatory Affairs (LARA) Business Entity Search before filing—similar names face automatic rejection and forfeit your filing fee.

Restricted terms that require approval include:

• Financial terms like "bank," "insurance," or "credit union"
• Professional designations like "attorney," "doctor," or "engineer"
• Educational terms like "university" or "college"
• Government-related words without proper authorization

Reserve an available name for 180 days by filing an Application for Reservation of Name with LARA for $25. This protects your chosen name while preparing formation documents.

2. Registered agent requirements

Michigan law under MCL Section 450.4207 requires every LLC to maintain a registered agent (called a resident agent) continuously throughout the company's existence. This requirement begins when you file Articles of Organization and cannot be waived.

Your registered agent must be:

• Michigan resident (18+) or authorized business entity registered in Michigan
• Available at a physical Michigan street address during business hours
• Present to receive legal documents and official correspondence
• Listed with current information in state records

Your options:

• Serve yourself: No cost, but your address becomes public record and you must be available during business hours
• Professional service: $100-$300 annually for privacy protection and guaranteed availability

3. Articles of Organization requirements

Form CSCL/CD-700 legally creates your Michigan LLC and requires specific information for state approval. The Department of Licensing and Regulatory Affairs processes these documents, rejecting incomplete or incorrect filings immediately.

Required information:

• Complete LLC name that exactly matches your availability search
• Registered agent's full name and Michigan street address
• Purpose statement (general language like "any lawful business activity" works)
• Management structure (member-managed or manager-managed)
• Organizer's name, contact information, and signature

File online, by mail, or in person with LARA. Standard processing costs $50 and takes up to two weeks. Expedited options include $50 for 24-hour, $100 for same-day, $500 for two-hour, $1,000 for one-hour processing, if received by the filing deadline.

4. Operating Agreement requirements

Michigan doesn't require operating agreements under MCL Section 450.4210, but this creates significant risks for LLC owners. Without written agreements, your company defaults to state law provisions that rarely match actual business operations. Essential provisions include:

• Ownership percentages and capital contributions
• Management structure and voting procedures
• Profit distribution and loss allocation
• Member admission and exit procedures
• Dispute resolution mechanisms

Single-member LLCs need operating agreements to maintain liability protection by demonstrating separate business operations. On the other hand, multi-member LLCs face greater risks without clear governance documents that prevent costly disputes.

5. Initial and ongoing compliance requirements

Michigan imposes immediate and continuing obligations after Articles of Organization approval, each with specific deadlines and enforcement mechanisms.

Immediate requirements:

• Obtain an EIN from the IRS for tax purposes and banking
• Register for Michigan business taxes if collecting sales tax or hiring employees
• Secure necessary business licenses based on industry and location

Ongoing requirements:

• File annual statements by February 15 each year ($25 fee)
• Maintain current registered agent information
• Keep proper corporate records and meeting minutes

Consequences of non-compliance

Michigan enforces LLC requirements through escalating penalties that can destroy your business and expose members to personal liability:

• Loss of good standing: Missing annual reports for two years triggers $10 monthly late fees (up to $50 maximum)
• Administrative dissolution: Continued noncompliance makes operating illegal and releases your business name
• Personal liability exposure: Courts may pierce the corporate veil when LLCs lose good standing
• Default judgments: Outdated registered agent information allows lawsuits to proceed without notice
• Restoration costs: Filing delinquent statements plus accumulated fees and $50 restoration fee

Ensure Michigan LLC compliance with Discern

Discern automates Michigan’s annual statement filing, provides professional registered agent services, and tracks compliance deadlines to prevent penalties and dissolution.

Ready to ease your compliance burden? Book a Discern demo today and discover how we handle formation and ongoing requirements across all states where you operate.