How much does it cost to start an LLC in Michigan in 2026?

Forming an LLC in Michigan requires a one-time initial filing fee of $50 paid to the Michigan Department of Licensing and Regulatory Affairs (LARA). When accounting for standard registered agent compliance ($39-$125/yr), expect initial Year 1 costs to be approximately $89.

What are the annual recurring fees for a Michigan LLC?

Michigan charges an annual report fee of $25 filed on a annual basis (due February 15 annually). There is no state franchise tax on standard LLCs in Michigan.

What is the true 5-year cost of maintaining a Michigan LLC?

Over 5 years, the true cost of a Michigan LLC is approximately $345. This includes initial formation ($50), recurring annual reports ($25), statutory franchise taxes, and compliance support.

Can I form an out-of-state LLC (e.g. Wyoming or Delaware) if I live in Michigan?

While you can legally form an entity in Delaware or Wyoming, if your principal place of business, employees, or operations are located in Michigan, you must register as a Foreign LLC in Michigan. In Michigan, the foreign qualification filing fee is $50 plus ongoing maintenance of $25/year, often resulting in double fees.

Verified 2026 Statutory Guide

Michigan LLC Cost Calculator & 5-Year Taxes

Initial state filing fee: $50. Ongoing annual report fee: $25 (annual). No state franchise tax.

Compare Michigan vs Others

Direct Answer • 2026 Official Fee Schedule

Starting an LLC in Michigan costs $50 for the one-time Articles of Organization filing fee, plus $25/yr in recurring annual report fees. Over 5 years, maintaining a Michigan LLC costs an estimated $345.

Initial State Filing$50One-time payment

Annual Report$25Due February 15 annually

Franchise Tax$0none

Registered Agent$39–$125Annual service

Statutory Department: Michigan Department of Licensing and Regulatory Affairs (LARA)

Verify on State Website (.gov)

Michigan LLC 5-Year Cost Model

Adjust parameters below to model state filing fees, recurring franchise taxes, and compliance overhead.

Popular:

1. State of LLC FormationInitial: $50

Approval speed: 3-5 business days•Public Privacy: Standard

2. Where do you conduct business?

If you reside or hire employees in a different state from your LLC, that state requires Foreign Qualification registration.

3. Estimated Annual Gross Revenue$150,000

Michigan Tax Rule: No franchise tax on LLCs in Michigan.

4. Registered Agent ServiceMandatory by law

5. Expedited State Processing

Expedited State Processing (+$50)

Accelerates state filing from 3-5 business days to 24-48 hours.

Deciding where to incorporate?

Compare Michigan vs Wyoming & Delaware →

Year 1 Setup Cost

$89

Initial formation fee ($50) + registered agent

Annual Maintenance

$64 /yr avg

Annual report ($25/yr)

5-Year True CostAll Hidden Fees Included

$345(~$6/mo)

Total 5-year statutory commitment to maintain legal compliance in Michigan.

5-Year Cost Trajectory & Fee Composition(Click any year to inspect)

Notice how initial filing fees are often dwarfed by recurring franchise taxes and maintenance.

Inspecting: Year 1 ($89)

$89

Year 1Formation

$64

Year 2Renewal

$64

Year 3Renewal

$64

Year 4Renewal

$64

Year 5Renewal

State Formation & Expedited

Franchise & Entity Taxes

Annual / Biennial Reports

Special Mandates (Publication, etc.)

Registered Agent Compliance

Home State Foreign Qualification

Year 1 Itemized Line Items

Total: $89

State Filing$50

Franchise Tax$0

Annual Report$0

Special / Pub$0

Registered Agent$39

Foreign Qual.$0

5-Year Budget Allocation by Cost Category

Total State Filings

$50

14% of 5-yr budget

Total Franchise Taxes

0% of 5-yr budget

Annual / Biennial Reports

$100

29% of 5-yr budget

Registered Agent Service

$195

57% of 5-yr budget

Publication / Mandates

0% of 5-yr budget

Recommended Business BankingFDIC Insured up to $5M

Open a zero-fee business checking account for your Michigan LLC

Separate your business finances immediately to preserve limited liability corporate veil protection.

Explore Mercury ($0 Monthly Fees)

Michigan LLC Statutory Framework & Compliance Guide (2026)

Statutory requirements and fee schedules under the Michigan Department of Licensing and Regulatory Affairs (LARA).

Official State Portal (.gov)

Annual Report Due DateFebruary 15 annuallyFrequency: ANNUAL

Normal Turnaround3-5 business daysExpedited: +$50

Public Record PrivacyStandardRegistered agent protects personal address

State Personal Income Tax4.25% flat taxLLC pass-through profits flow to owners

Michigan Franchise Tax & Business Privilege Tax Rules

No franchise tax on LLCs in Michigan.

Advantages of a Michigan LLC

Extremely affordable: $50 initial filing and only $25/year
Low barrier to entry

Drawbacks & Hidden Costs

Due very early in the calendar year (Feb 15)

Founder Pro-Tip for Michigan

Veterans receive a fee waiver for LLC formation in Michigan under Public Act 153.

Step-by-Step Michigan LLC Formation Checklist (2026)

Choose an Available Entity Name

Must include "LLC", "L.L.C.", or "Limited Liability Company" and be distinguishable on the Michigan Department of Licensing and Regulatory Affairs (LARA) registry.