$50 to form your Michigan LLC

Michigan LLC Cost: $50 Filing + $25 Annual Statement (2026)

Forming an LLC in Michigan costs $50 to file Articles of Organization (Form CSCL/CD-700) with the Department of Licensing and Regulatory Affairs (LARA) and $25 per year for the annual statement, due by February 15 each year. Michigan has no LLC franchise tax, no publication requirement, and allows anonymous formation (member names are not required on Articles of Organization). Five-year cost of ownership (DIY): $175. Michigan ranks among the cheapest states for LLC ownership over a 5-year horizon, edging out Wyoming ($400 over five years) and matching Iowa’s low-cost tier. The state pairs cheap fees with reasonably fast online processing through the LARA CorpOnline portal.

Reviewed by LLC Formation Cost Editorial Team, fact-checked against primary government sources • Last updated 2026-05-30 • 5 primary government sources cited

TL;DR

Michigan LLCs file Articles of Organization (Form CSCL/CD-700) with the Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division, for $50. Michigan calls its annual report the “annual statement” (Form CD-2700), filed each year by February 15 for $25. The state has no LLC franchise tax. Michigan does levy the Corporate Income Tax (CIT) on C-corps and LLCs electing C-corp status (6% flat) but exempts pass-through LLCs from entity-level tax; pass-through members owe Michigan personal income tax (4.25% flat in 2026) on their share. Online filings via LARA CorpOnline are processed in 1-3 business days; expedited service ($50 for 24-hour, $100 for same-day, $1,000 for one-hour) is available for time-critical filings. Michigan allows anonymous formation, Articles of Organization do not require member or manager names.

Michigan LLC cost breakdown (2026)

Line item	Cost	Source
Articles of Organization (Form CSCL/CD-700)	$50	michigan.gov/lara
Annual Statement (Form CD-2700)	$25/yr	michigan.gov/lara
Expedited 24-hour (optional)	$50	michigan.gov/lara
Expedited same-day (optional)	$100	michigan.gov/lara
Expedited 1-hour (optional)	$1,000	michigan.gov/lara
Franchise tax	$0	michigan.gov/treasury
Registered Agent service (optional)	$50-$200/yr	private market
Year 1 total (DIY online)	$75	($50 + $25 first annual statement)
Year 2+ ongoing (DIY)	$25/yr
5-year total (DIY)	$175	($50 + $25 × 5)

All figures verified 2026-05-30 from primary Michigan state sources.

Why Michigan is consistently underrated

Michigan’s $50 filing fee and $25 annual statement put it in the same low-cost tier as Mississippi, Iowa, and Arkansas, but Michigan offers something those states don’t: a fast, modernized online portal (LARA CorpOnline) with reliable same-day processing for standard filings. The state’s underrated combination of:

• $50 formation cost, matching Mississippi, Arizona, Missouri, Montana for cheapest filing.
• $25 annual statement, lower than Wyoming ($60), Florida ($138.75), and Texas (info-only report but the formation fee is $300).
• No franchise tax, the Michigan Business Tax was repealed in 2012 and replaced with a Corporate Income Tax (CIT) that only applies to C-corps. Pass-through LLCs owe $0 at the entity level.
• Anonymous formation, Articles of Organization (Form CSCL/CD-700) do not require member or manager names. Only the organizer and registered agent are public.
• Fast turnaround, online filings typically approved within 1-3 business days; expedited options range $50-$1,000 for 24-hour to 1-hour service.

The privacy combined with low cost has made Michigan a quiet alternative to Wyoming for asset-protection LLC structures, particularly for Midwest-based operators who want anonymity without out-of-state nexus headaches. The 5-year DIY total of $175 is among the cheapest in the country, behind only Mississippi ($50, but no annual report mechanism for active LLCs), Missouri ($50 + $0 = $50, no annual report), New Mexico ($50, no annual report), and Iowa ($125 with biennial $30). Source: Michigan LLC Act, P.A. 23 of 1993 as amended, verified 2026-05-30.

Filing steps (DIY, no service)

1. Pick a name, search availability at the Michigan LARA Business Entity Search. Names must include “Limited Liability Company,” “L.L.C.,” “LLC,” “Limited Company,” “LC,” or “L.C.”
2. Designate a resident agent, must have a Michigan street address (MCL § 450.4207). You can act as your own resident agent if you reside in Michigan.
3. File Articles of Organization (Form CSCL/CD-700), $50 fee. File online at LARA CorpOnline or by mail to Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau, P.O. Box 30054, Lansing, MI 48909.
4. Get a federal EIN, free at irs.gov.
5. Draft an operating agreement, not required by Michigan law but recommended. MCL § 450.4308 recognizes operating agreements as binding between members.
6. Register for Michigan state taxes, sales tax license ($0) via Michigan Treasury Online if selling tangible goods, employer withholding registration if hiring W-2 employees. Use Form 518.
7. Check local licensing, Detroit, Grand Rapids, Ann Arbor, and other municipalities may require separate business licenses or occupational permits.
8. Open a business bank account, Michigan banks (Comerica, Flagstar, Huntington Michigan, Mercantile Bank) require the filed Articles, EIN letter, and operating agreement.
9. File FinCEN BOI report, required under the federal Corporate Transparency Act within 30 days of formation. Free at fincen.gov/boi.
10. Calendar the annual statement (February 15), file online via LARA CorpOnline for $25.

Online filings via LARA CorpOnline are typically processed in 1-3 business days. Expedited service: $50 for 24-hour, $100 for same-day, $500 for 2-hour, $1,000 for 1-hour turnaround. Mail filings take 7-14 business days plus mail transit. Source: Michigan LARA Expedited Service Fees, verified 2026-05-30.

Page-unique facts

• Michigan allows fully anonymous LLC formation. MCL § 450.4203 (the Articles of Organization requirements) does not require member or manager names. The public Articles list only the entity name, statement of purpose, registered agent, and organizer. Member identities are private unless voluntarily added to the annual statement. Source: MCL § 450.4203.
• Michigan’s annual statement is due February 15 every year, statewide deadline. This is a uniform deadline regardless of formation date. An LLC formed in December 2025 owes its first annual statement by February 15, 2026, just 2-3 months after formation. An LLC formed in March 2026 has until February 15, 2027.
• Michigan offers four expedited speed tiers. Standard ($0 add-on), 24-hour ($50), same-day ($100), 2-hour ($500), and 1-hour ($1,000). The 1-hour option is rare nationally and used by attorneys for time-critical closings.
• Michigan repealed the Michigan Business Tax in 2012. Under P.A. 38 of 2011, the MBT was replaced with the Corporate Income Tax (CIT) that applies only to C-corps and LLCs electing C-corp status (6% flat rate). Pass-through LLCs pay nothing at the entity level. The MBT had previously imposed a Modified Gross Receipts Tax on LLCs above $350K in receipts, that’s gone since 2012. Source: Michigan Treasury, Corporate Income Tax.
• Michigan adopted Series LLCs in 2017. Under MCL § 450.4906, Michigan authorizes Series LLCs with one master filing covering multiple internal series, each with separate assets and liabilities. Common pattern for Michigan real estate investors and family asset-protection structures.

FAQ

When is my Michigan LLC annual statement due?

By February 15 each year, regardless of formation date. Michigan uses a uniform statewide deadline rather than anniversary-based deadlines. An LLC formed in January 2026 owes its first annual statement by February 15, 2027. An LLC formed November 2026 also owes its first annual statement by February 15, 2027 (just three months after formation). LARA sends courtesy email reminders 60 days in advance to the registered agent’s email on file. Missing the deadline triggers a $25 late fee; failure to file for two consecutive years triggers automatic dissolution. Source: Michigan LARA Annual Statement info, verified 2026-05-30.

Does Michigan charge a franchise tax on LLCs?

No. The Michigan Business Tax (MBT) was repealed in 2012 and replaced with the Corporate Income Tax (CIT) at a flat 6%, which applies only to C-corps and LLCs electing C-corp tax status. Pass-through LLCs (single-member disregarded entities or multi-member partnerships) owe nothing at the entity level. Michigan-resident members owe Michigan personal income tax (4.25% flat in 2026) on their share of pass-through profits. Source: Michigan Treasury, business taxes.

Can I form an anonymous Michigan LLC?

Yes, fully anonymous formation is allowed. MCL § 450.4203 (the Articles of Organization requirements) does not require member or manager names. The public formation document lists only the entity name, purpose statement, registered agent name and address, and the organizer’s signature. Combined with the FinCEN BOI being a non-public federal database, Michigan offers comparable formation-level anonymity to Wyoming and New Mexico for most use cases. The annual statement does ask for officer information once filed but does not require listing all members. Source: MCL § 450.4203.

How fast is Michigan LLC formation?

Standard online filings via LARA CorpOnline are typically processed in 1-3 business days. Expedited options: $50 for 24-hour turnaround, $100 for same-day, $500 for 2-hour, $1,000 for 1-hour. Mail filings take 7-14 business days at the LARA office plus mail transit each way. For time-critical formations (LLC needed for a closing, contract signing, or bank opening), the $50 24-hour expedite is usually sufficient. Source: Michigan LARA Expedited Service Fees.

Does Michigan require an operating agreement?

No, Michigan does not statutorily require LLCs to adopt an operating agreement. MCL § 450.4308 recognizes operating agreements as binding between members whether oral, written, or implied by conduct. Banks (Comerica, Flagstar, Huntington Michigan, Mercantile) typically require a written agreement to open a business checking account, so the practical answer is “yes, have one in writing.” Source: MCL § 450.4308.

Can a Michigan LLC own real estate in other states?

Yes. A Michigan LLC can own real estate in other states, but it will likely need to register as a foreign LLC in the state where the property is located, particularly if the LLC has employees, an office, or active operations there. Passive ownership of real estate held by a Michigan LLC may or may not trigger foreign qualification depending on the host state’s “doing business” definition. California, New York, and Texas have aggressive “doing business” rules that often pull in passive LLCs. Florida, Nevada, and Wyoming have more passive-friendly definitions. Consult with counsel in the host state. Source: IRS Publication 3402.

Michigan tax structure for LLC pass-through profits

Michigan’s individual income tax is a flat 4.25% (2026) on Michigan-source income, applied to LLC members’ share of pass-through profits. Compared to graduated-rate states (Maryland up to 5.75% state plus local piggyback, Minnesota up to 9.85%, Maine up to 7.15%), Michigan’s flat structure produces a predictable tax burden regardless of income level. Non-resident members owe Michigan non-resident income tax on Michigan-source LLC profits, filed via Form MI-1040. Multi-member LLCs taxed as partnerships file Form MI-1065 to report Michigan-source income, but the entity itself owes nothing at the state level. Michigan-resident LLC members can also be subject to city income taxes if they reside or earn income in Detroit, Grand Rapids, Saginaw, or other Michigan cities that levy local income taxes (Detroit charges 2.4% resident / 1.2% non-resident; Grand Rapids 1.5% / 0.75%). Pass-through LLC profits flow to members’ personal returns and are subject to these city taxes if the member is a resident of the city. The LLC entity does not pay city income tax directly unless it elects C-corp status (then subject to the city’s corporate income tax structure). Source: Michigan Department of Treasury, individual income tax.

State quirk: the February 15 statewide deadline

Michigan is one of the few states using a uniform statewide annual-report deadline (February 15) rather than anniversary-based. The deadline traces to the original 1993 Michigan LLC Act (P.A. 23 of 1993), where the legislature wanted to spread filings into the early-year window when LARA staffing capacity was highest. The structural quirk: an LLC formed in late 2025 (say, December 1) owes its first annual statement by February 15, 2026, just 76 days after formation, whereas an LLC formed February 16, 2026 has nearly 364 days before its first filing. This timing asymmetry catches late-year filers off guard, especially those who haven’t yet opened a bank account, started operations, or even mailed the EIN application. The LARA system sends a reminder email 60 days before February 15, but only to the registered agent’s email on file. New filers should calendar February 15 manually from the moment of formation. Source: Michigan LLC Act, MCL § 450.4207.

Common mistake in Michigan

The most common Michigan LLC mistake is filing late in the calendar year (October-December) and missing the February 15 annual statement deadline for the following year. Filers expect “one year free” before their first annual filing (as in Florida, Wyoming, Texas) and don’t realize Michigan’s deadline is statewide and immediate. An LLC formed November 30, 2025 owes its first annual statement by February 15, 2026, just 11 weeks after formation. Missing it triggers a $25 late fee and starts the two-year clock to automatic dissolution. Calendar February 15 as a hard deadline from day one regardless of formation date.

A secondary error is over-relying on Michigan’s formation-document anonymity without recognizing that the FinCEN Beneficial Ownership Information (BOI) report still applies federally. Yes, the Michigan Articles of Organization do not require member or manager names. But every Michigan LLC formed in 2024 or later must still file a BOI report with FinCEN within 30 days of formation, disclosing every beneficial owner with 25% or greater ownership or substantial control. The BOI database is non-public (only law enforcement and certain financial institutions can access it), so the privacy advantage of Michigan formation is preserved in the public-record sense. But the disclosure obligation still exists, and willful non-filing carries civil penalties up to $591/day (2026 indexed) plus criminal penalties. Michigan operators who form anonymously at the state level must still complete the federal BOI filing; missing it does not protect anonymity but does create federal enforcement exposure. Source: FinCEN BOI filing.

When a Michigan LLC makes sense vs. neighboring alternatives

Michigan’s $50 filing + $25 annual statement combination puts it in the cheapest tier nationally, ahead of Wyoming and competitive with Mississippi, Iowa, and New Mexico. Compared to regional alternatives:

• Michigan vs. Ohio, Ohio ($99 filing + $0 annual = $99 5-year) is competitive on long-run cost but has no annual report mechanism, making continuity tracking weaker. Michigan’s $25 annual statement provides better statutory record continuity. For Detroit/Toledo border operators, the choice often follows employment location.
• Michigan vs. Indiana, Indiana ($95 filing + $32 biennial = ~$175 5-year) is essentially tied with Michigan on cost. Both have similar processing speed. Choice usually follows resident state.
• Michigan vs. Illinois, Illinois ($150 filing + $75 annual = $525 5-year) is dramatically more expensive than Michigan. Chicagoland operators near the border may prefer Michigan formation with Illinois foreign qualification, but the Illinois “doing business” nexus rule typically pulls in any operator with Illinois customers or staff.
• Michigan vs. Wyoming, Wyoming ($100 + $60/yr = $400 5-year DIY) is more expensive than Michigan in absolute terms. Wyoming offers stronger statutory charging-order protection and stronger anonymity case law, but Michigan’s anonymous formation (formation document only) is functionally equivalent for most use cases. Cost-conscious operators with no specific Wyoming-specific advantage often prefer Michigan.
• Michigan vs. New Mexico, New Mexico ($50 filing + $0 = $50 5-year, no annual report) is the cheapest, but New Mexico does not require an annual report at all, which can create continuity tracking ambiguity. Michigan provides similar cost with active annual filing that confirms entity status.

For Michigan-based operators, the domestic Michigan LLC is the natural choice. For non-Michigan operators looking for cost + anonymity, Michigan is a strong alternative to Wyoming with comparable structural benefits.

Sources

1. Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division, last verified 2026-05-30
2. Michigan LARA CorpOnline Filing Portal, last verified 2026-05-30
3. Michigan Limited Liability Company Act (P.A. 23 of 1993), last verified 2026-05-30
4. Michigan Department of Treasury, business taxes, last verified 2026-05-30
5. IRS Publication 3402, Taxation of Limited Liability Companies, last verified 2026-05-30

About the author

Aissam Baidi is the founder and researcher behind llcformationcost.com. He verifies Michigan LLC fees directly from michigan.gov/lara on a quarterly cycle. Connect on LinkedIn.

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Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.