Best LLC Formation Service in Michigan

The first thing you need to do is come up with a creative idea for your LLC in Michigan. Conduct market research to find some low-risk business ideas worth pursuing. Figure out the products and services you will sell and find a reliable supplier for your small business.

To attract customers to your business, deliver high-quality products and provide an excellent customer experience. Also, clearly define your unique value proposition to give customers a reason to choose your products over what’s available out there.

You need a unique business name for your LLC in Michigan. No other business in the state should be using the name, so check the availability of your desired name on Tailor Brands’ online portal to ensure your preferred business name is available for use.

You also need to ensure your business name follows the state’s naming guidelines. First, your name must include the term “limited liability company” or the abbreviation “LLC” or “LC”. It must also not include terms that can confuse the public, such as FBI.

After coming up with a business idea and choosing a name for your LLC in Michigan, the next step is to create a strategic business plan. The plan should describe your business and highlight clearly what you need to do to succeed in a competitive market. 

The plan should include a thorough analysis of your market and what you should do to gain market share. It should also define your management structure, target customers, a description of your products, and the plan to raise funding to grow the business.

For you to start an LLC in Michigan, you need to appoint a registered agent for your LLC. All businesses must have a local registered agent who will receive official mail on behalf of the LLC. The registered agent must have a physical address in the state. 

They must be available during regular business hours to receive your legal notices. When you form your LLC in Michigan with Tailor Brands, you can opt to appoint it as your registered agent as it’s in good standing with the state.

Filing your documents is the most important step when forming your LLC in Michigan. These documents officially establish your organization by sharing crucial information about it. You can file the LLC formation documents online, in person, or through mail. 

The crucial information you need when filing your Articles of Organization includes the name of your LLC, your business address, the purpose of your LLC in Michigan, as well as the name and address of your registered agent. You need to pay a $50 filing fee. If you’re a foreign LLC doing business in Michigan, you must obtain a Certificate of Authority for $50.

After filing your Articles of Organization, submitting the necessary information, and paying the non-refundable state filing fee, the Secretary of State will review your application to make sure that you have provided all the required LLC information.

If they’re satisfied with the information you have provided, your application will be approved, paving the way to the successful registration of your LLC in Michigan. You will then be issued with a Certification of Formation that shows that your business is legally registered to operate in the state.

An LLC Operating Agreement is a business document that describes the way an LLC will be managed. It lists the rights and responsibilities of the members. An Operating Agreement isn’t mandatory when forming an LLC in Michigan, but it’s advisable to have one. 

Some of the things you need to include when drafting an Operating Agreement include the business description, the name and address of the members, and their contribution. You should also mention whether the LLC is manager-managed or member-managed.

Every LLC in Michigan is required by law to get an Employer Identification Number (EIN). This is a 9-digit number assigned by the Internal Revenue Service to identify LLCs for taxation. This unique tax ID protects businesses from identity theft and fraud. 

When you get your EIN, you’ll need it to report your earnings and pay taxes. You will also need it to withhold employment taxes and forward them to the state when you hire employees. Lastly, you will need it to open a separate business bank account.

Your LLC in Michigan is subject to state and federal income taxes. You need to understand your tax responsibilities so you can adhere to them and keep your LLC in good standing. You will need to pay sales tax and employer taxes, for example. 

If you are selling physical products, you are required to charge a sales tax and submit the same to the state. If you plan to hire employees, you need to sign up for Employer Withholding Tax. You are exempt from this tax if your LLC in Michigan doesn’t have employees.

Should you hire employees for your business, you need to comply with certain employer obligations. Besides creating a conducive environment for your employees, the state requires every LLC in Michigan with employees to comply with other legal obligations. 

First, you need to report all new hires to the government within 20 days of bringing them on board. You should also withhold taxes from their wages and forward that to the government. Lastly, you must get workers’ compensation insurance for work injuries.

To run your business lawfully in the state, you may need to obtain certain licenses and permits. Check with the state to see which permits you need to operate your LLC in Michigan. Luckily, the state has an online database of the permits your business may require.

For example, you will need a food license if you want to open a restaurant. If you will be serving alcohol, you will need a liquor license. Most of these licenses and permits are renewed yearly, so take note of their renewal dates to avoid operational interruption.

When running your LLC in Michigan, you don’t want to mix your personal and business finances. This will cause a lot of confusion and lead to the misappropriation of business funds. That’s why it’s important to open a separate bank account for your business. 

A separate bank account makes it easy for you to manage your business finances, deduct business expenses, and file your Michigan LLC taxes. It also enables you to conduct proper business accounting and keep track of your business performance. 

Before you start operations, acquire business insurance for your LLC in Michigan. Savvy entrepreneurs know that a lot can go wrong when running a business, such as fires and injuries. That’s why you will need business insurance to protect the business. 

While an LLC protects the owner’s assets from business liability, you still need business insurance to protect the business assets. The insurance you should get includes liability insurance, commercial property insurance, and workers’ compensation insurance.

You need to create a business website if you want your LLC in Michigan to succeed. The world has gone digital and customers now rely on technology to connect with businesses. Without a website, it will be difficult for potential customers to find you. 

Through its Elite plan, Tailor Brands will help you secure a free domain for a year for your website matching your business name. Not only will this legitimize your business, but it will make it easy for you to engage clients and communicate your business value.

The Lite plan from Tailor Brands is perfect for entrepreneurs looking for a simple, cost-free way to establish an LLC in Michigan. This entry-level package provides the essentials to get your business up and running without any additional costs.

With the Lite plan, you can expect your LLC to be formed within 14 business days, giving you the legal foundation to operate your business efficiently.

Here’s what you’ll receive:

• LLC Formation: Tailor Brands takes care of all the legal paperwork, sparing you the hassle.
• 14 Business Day Processing: Your LLC will be created within the standard processing timeframe.

While this plan doesn’t include extra features like faster processing or compliance support, it’s a great choice if you just need the basic tools to get started.

This plan works best for individuals who:

• Feel comfortable handling most of their LLC formation process on their own
• Don’t need expedited services
• Are on a tight budget but still want professional help with the essential formation steps

Price: Free

Tailor Brands’ Essential plan goes beyond basic LLC formation. It provides additional support for faster processing and compliance with ongoing business requirements. 

It’s a great fit for business owners who want a more comprehensive service at an affordable price.

Here’s what the Essential plan includes:

• LLC Formation: Just like the Lite plan but with quicker processing.
• Expedited Service: Your LLC will be formed within 2 business days, significantly reducing wait time.
• Annual Compliance Support: Tailor Brands will help you stay on top of required filings and deadlines to ensure legal compliance.
• Operating Agreement Tools: You’ll get access to resources for creating a legally required LLC operating agreement.
• $30 Amazon Gift Card: This small bonus can help with initial business costs.

This plan is well-suited for entrepreneurs who:

• Want their LLC processed more quickly
• Need ongoing assistance with legal and compliance matters
• Value the inclusion of a professionally crafted operating agreement

Price: $199/year

Tailor Brands’ Elite plan is a premium option for business owners who want a comprehensive solution for forming their LLC in Michigan while simultaneously developing their brand. 

It includes all the features of the Essential plan, along with a range of business and branding tools to help you establish your presence online.

Here’s what you’ll get: 

• Everything from the Essential Plan: Expedited LLC formation, compliance support, and operating agreement tools.
• Upgraded $50 Amazon Gift Card: A larger gift card to further offset startup costs.
• Business and Branding Tools:
  • Free domain for one year: Secure a professional web address for your business.
  • DIY website and online store: Build your online presence using customizable templates.
  • Eight free logos: Create a professional look with a selection of customized logos.
  • Digital business card: A simple way for customers to access all your contact details.
  • Social media post maker: Create branded posts for your social media accounts.
  • Business card tools: Easily design and print your business cards.
  • Branded merchandise: Create branded merch and show off your logo. 

The Elite plan is ideal for those who not only want to set up their LLC in Michigan but also want to jumpstart their brand with the help of tailored business tools.

Price: $249/year