How to Form an LLC in Michigan: Planning the Business

How to form an LLC in Michigan is one thing that many business owners wonder about. Forming an LLC in Michigan is a process that many business owners find easy and affordable. An LLC company is a business structure that allows business owners to enjoy many benefits like taxes that pass through and limited liability.

The first step in forming an LLC in Michigan is choosing a name. Selecting a solid name is one of the most vital steps in the process.

After doing your research and brainstorming, you can check whether your proposed name can be used by looking at Michigan's database for LLC names. Be sure to tack one of these words to the endings of the proposed names:

  • Limited Liability Company
  • LC
  • L.C.
  • L.L.C.
  • LLC

The second step in forming an LLC in Michigan is reserving the name for your business. After you select a name for your business, you are able to reserve the name for 120 days. Applications for the reservation of a name are filed with the state of Michigan. You can send the application online or by the mail. The filing fee for reserving a name is $25.

The third step involves creating an agreement for operation for your LLC. In the state of Michigan, this step is technically optional. However, it is best for most business owners to create the agreement for operation during the formation of the LLC.

According to the legal code of Michigan, the agreement for operation is essentially a written agreement formed between the owners of the LLC. The agreement describes the affairs and organization of the LLC.

The fourth step involves appointing an agent. Limited liability companies must choose a registered agent when they file the articles pertaining to organization.

The responsibility of the agent is to accept any legal processes, which is any demand or notice sent to the limited liability company. The agent must also contact the company about legal processes in a timely manner.

How to Form an LLC in Michigan: Filing the Limited Liability Company (LLC)

When it comes to actually filing for the limited liability company, the first step is completing the articles pertaining to organization. In most states, businesses are required to file the articles pertaining to organization, which make up the official application for the formation of the LLC.

It is necessary to fill out every single blank in the articles pertaining to organization. One option that business owners have is to seek legal counsel if there are any parts of the Article of Organization that they don't understand.

The second step involves determining whether the business must file for a PLLC, which is a professional limited liability company. Some professions must use a different version of the articles pertaining to organization to form a PLLC.

This alternate version of the articles pertaining to organization is appropriate for businesses that want to provide legal, dental, religious, or medical services. The form is especially appropriate for businesses offering services typically provided by a physician, a dentist, a surgeon, an osteopathic physician, an attorney-at-law, or a doctor of divinity.

The name for a professional company must include P.L.L.C., PLLC, P.L.C. or PLC rather than the normal designations for an LLC. The purpose of these designations is to make it evident that the company is a professional limited liability company.

The third step involves sending the articles pertaining to organization to the Department of Licensing and Regulatory Affairs. A business should complete this step once all the required paperwork is filled out completely. To cover the fee, they should write a check for $50 payable to the State of Michigan.

The filing fee, as well as the articles pertaining to organization, should be mailed.

If you want to turn in the articles pertaining to organization by going in person, you can go to 2510 Woodlake Circle, Okemos, MI. To pay the filing fee in person when you turn in the articles pertaining to organization, you can write a check, make a money order, or pay by MasterCard or VISA credit or debit card.

If you need help with how to form an LLC in Michigan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.