Form a Corporation in Michigan with Inc Authority

When you start a Corporation in Michigan, you’ll need to register it with your official business name. So, your first order of business is to choose a unique, memorable, and relevant name for your new business in the state of Michigan.

Also, follow the naming convention and guidelines for Corporations in Michigan. You may need to use terms like Corporation, Incorporated, Limited, Co., Corp., etc. Additionally, check the state database to check for name availability.

Many times, it takes new entrepreneurs a while to get started with the business registration process. This means that there may be a delay between when you choose your business name and when you file your Michigan Articles of Incorporation.

In such cases, you can reserve your business name for 180 days (six months) by paying a nominal fee of $10. Unlike most other states, Michigan allows you to reserve the name again once the initial reservation period ends in six months.

A registered agent is an individual or organization responsible for receiving all legal and business correspondence on behalf of your company. They’ll pass all important legal documents to you and notify you of any upcoming compliance deadlines.

That’s why the next step in this guide to starting a Corporation in Michigan is to find and hire a registered agent for your business. The agent you appoint should have a physical address in Michigan, which is where your documents will be sent.

To officially register your company, you need to file the Articles of Incorporation with the Secretary of State for Michigan. You can do this online through their website or send the documents via mail or submit them in person at the concerned office.

You need to pay a state filing fee of $10. And if you want to expedite the process you can pay $50 for 24-hour processing, $100 for same-day processing, $500 for 2-hour processing, and $1,000 for 1-hour processing of your application.

Just like other states, Michigan also requires corporations to appoint a board of directors. In fact, you need at least one director to sign the Articles of Incorporation when you register your business with the Secretary of State.

The directors of a Corporation are responsible for making important decisions for the company. They can choose to manage the day-to-day operations of the company or appoint corporate officers and managers to take care of the operations.

The Board of Directors of a Michigan Corporation is responsible for drafting corporate bylaws for the company. This is a document that lays down the guidelines for how the company will be run and how decisions will be made.

The corporate bylaws also contain information on the company’s purpose, management structure, procedure for holding shareholder and board meetings, and other important information pertinent to the business and its operations.

The first board meeting is extremely important for any Corporation, whether in Michigan or any other state. This is when the directors meet for the first time to make important business decisions that affect the strategic direction of the company.

During the initial meeting, directors will appoint officers, discuss each director’s roles and responsibilities, issue share certificates, etc. You need to take detailed minutes of this meeting to keep a record of everything that was discussed.

A C-Corporation can issue various classes of stock to its shareholders, unlike an S-Corporation, which is allowed to issue only one class of stock. Some of these stocks may offer voting rights to shareholders while others may not.

When you incorporate in Michigan, you need to authorize shares and provide the details for the same in your Articles of Incorporation. If you issue more authorized shares than allotted, you will need to pay an additional fee of $50-$1,000.

Any business that intends to hire employees, must have an Employer Identification Number. Also known as a Tax ID, this identification number is used by the Internal Revenue Service (IRS) to identify your business for tax purposes.

You will also need an EIN to open a bank account for your business. Sometimes banks and investors also ask for this number before they give you a loan or invest in your Michigan business in any capacity. So, acquire one as soon as you can.

If you’re a seasoned entrepreneur, you would know the importance of keeping your personal and business finances separate. Opening a separate business bank account, therefore, is not an option, but a necessity for any business.

While it’s not exactly a requirement for incorporating your business, you should do this as part of your business formation process. The sooner you start a business bank account the better it is, as you can start tracking expenses from day one.

To run a business in any state, you will need some licenses and permits at the federal, state, and local levels. The number and type of business licenses you’ll need will vary depending on your type of business, industry, and area of operation.

Some businesses may just require a general business license, while others may need occupational or professional licenses. Some businesses also need food permits, health permits, etc. Find out the requirements and get these.

A website is where potential customers go to find information about your business. A website is the face of your business and can either drive leads and turn them into customers or cause prospects to leave and never come back again.

That’s why you must have a well-designed, SEO-friendly, and user-friendly business website. Use a good website design and marketing solution to ensure that your site is easy to navigate, aesthetically pleasing, and optimized for search engines.

Here’s what you’ll get with the free plan:

• Business name search: You can use the free name check tool to search for the availability of your chosen business name for use within the state.

• Complimentary registered agent services: You get one year of registered agent services from a Michigan registered agent, completely free of charge.

• Articles of Incorporation: Inc Authority will help you prepare and file your application to form a Corporation in Michigan, completely free of charge.

• S-Corporation election: If you want to get the S-Corp tax status to get more tax benefits, then Inc Authority can help you file Form 2553.

• Quick tax consultation: You get a brief consultation with a tax expert who’ll help you save money of federal and state taxes, as much as possible.

• Online document management: When you sign up for any plan, you get the option to store your documents online and maintain online corporate records.

• Business funding needs analysis: Inc Authority will assign you an expert who’ll analyze your short-term funding needs and offer sources of funding.

Price: Free