LLC Cost in Michigan (2025 Guide to All Formation & Ongoing Fees)

Forming an LLC in Michigan looks cheap on paper, but surprise fees and bad choices can quietly push your real cost much higher. Many owners expect a simple one time filing cost, then get hit with annual statements, registered agent invoices, and even fake “renewal” notices. This 2025 guide walks through every Michigan LLC cost in plain numbers, from the basic state filing fee to ongoing compliance and optional extras. By the end, you will know exactly what you must pay and which costs you can safely avoid.

How Much Does an LLC Cost in Michigan in 2025?

For most owners, the state of Michigan is going to charge you $50 once to form your LLC and $25 every year to keep it active. Everything else depends on how fast you want approval, whether you’re registering an out-of-state LLC, and whether you pay for extras like a professional registered agent service.

Michigan LLC Cost Table (2025)

There is no separate Michigan LLC franchise tax and no publication requirement, so your mandatory state costs are basically the $50 formation fee and the $25 annual statement, which is low compared to many states. For current amounts before you file, always confirm fees on the official Michigan LARA LLC page and the state filing fee schedule.

If you also need a step-by-step walkthrough of each filing, our Michigan LLC formation guide explains how to complete the paperwork without paying extra service fees.

One-Time State Fees to Form a Michigan LLC

Most of what you pay the State of Michigan to start an LLC in Michigan is charged once when you file or change your formation documents. Below are the one-time state costs you should actually budget for.

Articles of Organization filing fee

To create a domestic Michigan LLC, you must file Articles of Organization and pay a $50 state filing fee. This is the core, unavoidable state cost to form your LLC.

• Same $50 fee whether you file online, by mail, or in person.
• Paid once, at formation, it doesn’t recur annually.

Veteran-owned LLCs: if veterans own at least 51% of the new LLC, Michigan waives the $50 fee entirely when you submit the veteran fee waiver affidavit with your Articles.

So for most owners, your minimum “start-up” state cost is $50, but qualifying veteran-owned LLCs can form for $0.

If you’ve seen terms like “certificate of organization” or “certificate of formation” in other states, our certificate of organization guide explains how those documents compare to Michigan’s Articles of Organization.

Name reservation fee (optional)

If you’re not ready to file your Articles but want to lock in your LLC name, you can file Application for Reservation of Name (Form 540) and pay $25.

Key cost points:

• $25 one-time fee reserves the name for 6 months.
• You can re-reserve after expiration by paying another $25 if needed.
• Totally optional, if you’re ready to file your Articles now, you skip this cost and just file directly.

Use this only if delaying formation could cause you to lose the name to someone else; otherwise, save the $25.

Expedited processing options and fees

Michigan lets you pay extra to move your LLC filing to the front of the line. These expedited service fees are added on top of the $50 filing fee:

For most people, the standard (no extra fee) or 24-hour option is the best cost–speed balance. The 2-hour and 1-hour tiers only make sense if a big contract or transaction depends on same-day approval.

For a deeper look at processing times with and without expedited service, see our Michigan LLC approval time guide so you can decide whether the rush fee is actually worth it.

Amendments, restated articles, and correction filings

You only pay these fees if you change or fix something after your LLC is formed. For domestic Michigan LLCs:

• Restated Articles of Organization (Form 710) – $50
  Used when you completely restate and replace your original Articles (for major structural changes).
• Certificate of Amendment (Form 715) – $25
  Used for specific updates, like changing the LLC name or management structure.
• Certificate of Correction (Form 518) – $25
  Used to fix mistakes in a previously filed document.

There’s also a $5 fee if you file a Certificate of Change of Registered Office and/or Resident Agent to update your registered agent or office address.

These are all one-time, event-based costs, you only pay them when you actually make changes or correct errors.

Costs you do not pay in Michigan

Michigan keeps formation costs simple by not charging several fees that other states add on:

• No newspaper publication requirement
  Some states force new LLCs to publish a legal notice in a newspaper (often $100–$300+). Michigan law does not require publication when you form an LLC.
• No separate “initial report” fee
  Michigan LLCs file a $25 annual statement due February 15, starting the year or two after formation depending on your start date, but there’s no extra initial report filing or fee at formation.
• No separate LLC franchise / formation tax
  Michigan doesn’t impose a special LLC franchise tax like some states. Income is usually taxed at the owner level (or via elective flow-through entity tax), not as a separate “formation” tax when you file your Articles.

Ongoing State Costs for a Michigan LLC

Once your LLC in Michigan is formed, the main recurring state cost is the $25 annual statement. The rest of your “ongoing” cost picture comes from late penalties, possible state income taxes on profits, and avoiding junk-fee scams.

Michigan LLC annual statement fee

Every Michigan LLC must file an annual statement and pay a $25 fee to the Michigan Department of Licensing and Regulatory Affairs (LARA).

Key cost points:

• Amount: $25 per year (base ongoing state fee).
• Due date: February 15 each year for both domestic and foreign LLCs.
• First year rule: If your LLC is formed after September 30, you skip the next February 15 filing; your first annual statement is due the following year.
• How to file: Online via the state’s corporate filing system or by mail.

For many LLCs, this $25 annual statement is the only predictable, recurring state-level compliance fee.

Veteran-owned LLCs: if veterans hold a majority of the ownership, Michigan can waive the annual statement fee, bringing this ongoing state cost down to $0 with the proper veteran fee waiver request.

For a bigger-picture overview of how LLC annual reports work in other states, typical deadlines, and what happens if you miss them, see our LLC annual report guide.

Late filing penalties and loss of good standing

If you miss the February 15 deadline:

• Late penalty: A $50 penalty is added if the annual statement is not filed or paid on time.
• Status change: Your LLC can be marked “not in good standing” or “noncompliant,” which can block loans, contracts, or registrations that need a certificate of good standing.
• Administrative dissolution risk: If you ignore filings for roughly two years, LARA can start administrative dissolution, which adds back fees, reinstatement charges, and often professional costs.

From a pure cost angle, it is much cheaper to pay $25 on time each year than to deal with $50 penalties plus reinstatement and cleanup.

No franchise tax, but possible income tax

Michigan does not have a separate LLC franchise tax or flat “privilege tax” for LLCs.

But depending on how your LLC is taxed and how much it earns, you may still owe Michigan taxes:

• Default pass-through LLCs: Profits usually pass through to the owners and are taxed under the Michigan individual income tax when you file your personal return.
• Electing Flow-Through Entity (FTE) tax: Certain multi-member LLCs can elect to pay the Michigan Flow-Through Entity Tax (FTE) at the entity level instead, often as a federal SALT workaround strategy.
• LLC taxed as a C corporation: If your LLC elects corporate tax treatment, it may owe the 6% Michigan Corporate Income Tax on apportioned income, even though there is still no separate “franchise” fee.

So while there’s no extra LLC franchise tax line item, you should still budget for state income tax on profits if your business is making money.

Beware of fake “annual statement” invoices and $300 scam

Michigan LLCs have been targeted with official-looking letters that claim an “Annual Statement” is past due and demand around $300. These often come from private companies, not the state.

Cost reminders:

• The real state fee for the LLC annual statement is $25, not $300.
• LARA does not use private “filing services” to bill you. Official notices come from the Michigan Department of Licensing and Regulatory Affairs to your registered office or resident agent.
• If a letter looks suspicious, check your status directly on the state’s business search and use the contact information on the official LARA site, not the number printed on the notice.

Ignoring scam invoices does not hurt your LLC, but paying them wastes hundreds of dollars on a service you do not need.

Registered Agent (Resident Agent) Costs in Michigan

Every Michigan LLC must list a resident (registered) agent with a Michigan street address. Cost-wise, you either pay $0 if you or another owner acts as agent, about $100–$300 per year for a commercial service, and $5 if you file a change later.

If you use yourself or another owner, there is no extra state fee. You only need a Michigan address and someone available during business hours. The trade off is that your address is public and you must reliably receive legal and state mail.

Commercial Michigan registered agent services commonly charge in the low hundreds per year, with some options near $99 per year and many national providers around $125 or more. Many formation companies include the first year of registered agent service when they form your LLC, then renew at their regular annual price. For side by side pricing and features, see our best Michigan registered agent services guide.

Michigan Registered Agent Cost Comparison (2025)

For official requirements and forms, you can check Michigan’s Resident Agent and Registered Office guidance and the state filing fee schedule on the LARA website.

If you’re comparing providers, our Michigan LLC service reviews break down pricing, registered agent features, and typical ongoing costs so you can budget more accurately.

Other Common Michigan LLC Startup & Operating Costs

Beyond state filing fees, most Michigan LLCs spend money on documents, tax setup, banking, software, and insurance. These are not always required by law, but they are common in practice and should be in your budget.

Operating Agreement for a Michigan LLC

Michigan does not charge a fee or require you to file your operating agreement, but creating one still costs something.

• DIY template: about $0–$50 (online template, book, or software).
• Attorney drafted: roughly $300–$1,000+, depending on complexity.

Single member LLCs often start with a template. Multi member LLCs or investor situations usually justify an attorney.

EIN Cost for a Michigan LLC

You almost always need an EIN (Employer Identification Number) to open a business bank account or hire employees.

• Direct from IRS: $0, you can apply online at IRS.gov or by mail/fax for free.
• Third-party/formation service: $50–$100+, if you pay a company to “get an EIN for you” as an add-on.

If you’re comfortable with a basic government form, there’s almost never a reason to pay for an EIN.

Local Licenses, Permits, and Zoning

Michigan doesn’t have one single statewide business license, but cities, counties, and industry regulators can require permits and registrations. Costs vary widely.

Typical examples:

• City or county business license: about $25–$200+ per year, depending on location and business type.
• Health permits (restaurants, food trucks, salons): commonly $100–$500+ including inspections.
• Zoning and home-occupation approvals: sometimes a $25–$150 application fee.

Check your city, township, county, and any industry regulator for exact fees. If you are in a licensed profession and unsure whether a standard LLC is enough, our LLC vs PLLC guide explains the legal and cost differences.

Michigan tax registrations

Registering for taxes is usually free, but payments and penalties are not. Common items:

• Sales or use tax: Registration through Michigan Treasury Online is $0, but you collect and remit tax on taxable sales.
• Employer withholding: Free to register, but missed deposits create penalties and interest.
• Unemployment insurance: Free to register with the UIA, then you pay contributions based on payroll.

Registration itself often costs $0, but you should plan for the ongoing tax and payroll costs.

Bank account, bookkeeping software, and insurance

These are not state fees, but they are typical operating costs for a Michigan LLC.

Typical ranges (2025):

You do not pay these amounts to the State of Michigan, but they are real cash costs most LLCs will see.

Some Michigan employers also partner with a professional employer organization, and our Michigan PEO comparison explains how outsourcing payroll and HR can trade a single monthly fee for separate software, payroll, and benefits administration costs. If you’re forming a Michigan LLC specifically to hold rental properties, our  LLC for rental properties guide breaks down how formation fees, annual reports, and liability protection play out for landlords.

Foreign LLC Cost in Michigan

If your existing out-of-state LLC wants to do business in Michigan, you don’t form a new entity. You simply register it as a foreign LLC. The core state cost is a $50 Certificate of Authority filing fee, plus optional expedited fees and ongoing annual statement and registered agent costs.

Certificate of Authority filing fee

To register a foreign LLC, you file Application for Certificate of Authority to Transact Business in Michigan with LARA and pay a $50 state filing fee.

• One-time fee when you first register.
• Required before regularly doing business in Michigan as an out-of-state LLC.

This $50 is the foreign LLC equivalent of the Articles of Organization fee for a domestic Michigan LLC.

Expedited processing fees

Foreign LLC filings can use the same expedited options as domestic filings. These fees are added on top of the $50 Certificate of Authority fee:

Most foreign LLCs can avoid the high-end rush fees by planning ahead and using standard or 24-hour processing.

Extra home state document costs

You will usually need documents from your home state, such as:

• Certificate of Good Standing: about $10–$50
• Certified copies of formation documents: about $10–$60+

These are not Michigan fees, but they are common extra costs to complete a foreign registration.

Ongoing annual statement and registered agent costs

Once approved, a foreign LLC in Michigan has almost the same ongoing costs as a domestic LLC:

• Annual statement: $25 per year, due February 15, with a $50 late penalty if you miss the deadline
• Registered agent in Michigan:
  • $0 if you use your own qualifying Michigan address
  • About $100–$300 per year for a commercial Michigan registered agent service

In practice, your yearly cost to keep a foreign LLC active in Michigan is usually $25 plus your registered agent fee, plus any Michigan taxes tied to your business activity.

FAQs – Michigan LLC Costs in 2025

This section answers the most common money questions about starting and running an LLC in Michigan. Each FAQ gives you a quick, direct cost answer first, followed by a short explanation. Use it as a fast reference when you’re budgeting or comparing Michigan to other states.