One of the most important steps you can take to safeguard your personal assets and build trust in the industry is to incorporate your business in Michigan. But before you start this procedure, it’s crucial to be aware of how much it will cost to incorporate your company in Michigan.
The price of incorporating in Michigan might vary based on a number of elements, including the kind of business structure you select, the filing fees, and other related expenditures. For instance, filing the Articles of Incorporation with the Michigan Department of Licensing and Regulatory Affairs (LARA) costs $60 to incorporate a C-Corporation in Michigan. On the other hand, submitting the Articles of Organization with LARA costs $50 to incorporate an LLC in Michigan.
Obtaining a business license, registering with the Michigan Department of Treasury, and applying for any required permits can all contribute to the expense of starting a business in Michigan. Depending on the sector you work in and the location of your company, these charges may change.
Furthermore, while company bylaws are not required in Michigan, it is always a good idea to have them in place. The guidelines that govern your firm are outlined in your corporate bylaws, which you can utilize to safeguard your interests as well as streamline operations.
It’s vital to keep in mind that LLCs give more protection for your personal assets and are often viewed as more respectable in the business world while deciding between an LLC and a sole proprietorship. Contrarily, sole proprietorships don’t provide any personal asset protection but are simpler and less expensive to set up.
Last but not least, you must submit an Application for Reservation of Name to LARA in order to reserve a business name in Michigan. A business name can be reserved in Michigan for $10, and the reservation is good for six months.
In conclusion, depending on the type of business structure you select, the cost to incorporate your firm in Michigan might range from $50 to $60. The total cost may also increase as a result of other expenses like paying for a business license, signing up with the Michigan Department of Treasury, and applying for permits. Even though Michigan does not mandate corporation bylaws, having them in place is a good idea. Your personal preferences and business requirements will determine whether you should form an LLC or a single proprietorship. Finally, it costs $10 and is possible to reserve a business name in Michigan for a period of six months.
You can submit a paper form by mail or file online through the website of the Michigan Department of Licensing and Regulatory Affairs (LARA) to get articles of incorporation. On the LARA website or from the Michigan Corporations Division, you can acquire the forms and filing instructions. To help with the process, you can also use a registered agent or an attorney.