Setting up an LLC in Michigan

9 Replies

Hi @Charlene Garrison

I set mine up through an attorney. I paid him ~500 total for his time to set it up and the LLC fees. You might be able to get it done for a better price. I would call around to some attorneys and ask what total price you would have to pay for this.

Hope that helps. 


@Charlene Garrison , it is unlikely that you need a LLC if you are just starting out but if you decide to form one Michigan has a simple online application. You can easily complete the form for a single member LLC in 10 minutes. It costs $50 to start the LLC and there is a $50 annual fee to keep it active. There is no need to pay anyone to do this for you.

Jeff- in Michigan, does the state filing of the Articles of Organization replace the need for any operating agreement? Just curious-- cant imagine you would need an operating agreement for a SME, but if required, legal counsel may be beneficial.

 @Jeff Rabinowitz , thanks for the correction. My mistake. Just looked over my attorney bill and it was definitely cheaper. But still more than 50. I guess it pays to ask the community first :)

@Account Closed , I am not a lawyer and I rarely use LLCs. An operating agreement is not required for a SME but my understanding is that the entity could be stronger if there is one and the owner actually follows the provisions in their operating agreement. Most people do not. The default on the Michigan application states something like this entity can engage in any legal activity. It is usually advisable to consult with experts--mine (lawyers and accountants) advised me not to bother with the LLCs for my rentals.

(I'm not a lawyer)

But I think, if you want to do get better asset protection, you'd need both properly setup LLC and also get an umbrella liability policy.

For what it's worth, I set up my LLC for $50 to get my articles of incorporation, I have a simple operating agreement that I got from the internet and I set up a different bank account. So a lot cheaper (but probably less safe) than a lawyer.

You don't need an Operating agreement for a single member LLC, but it helps reduce the chance of the judge breaking the corporate veil if you do get sued.