Select a business name in the first step. Choosing an original name for your firm is the first step in incorporating in Michigan. Your company name shouldn’t be confusingly similar to any other names for companies that are already registered in Michigan. On the website of the Michigan Department of Licensing and Regulatory Affairs (LARA), you may see if your company name is already taken.
File Articles of Incorporation in Step 2 The Michigan Department of Licensing and Regulatory Affairs (LARA) is where you must submit your Articles of Incorporation after that. These articles set forth the name and objectives of your corporation, the amount of shares you are authorized to issue, the first directors’ names and addresses, and the name and address of your corporation.
Step 3: receive an Employer Identification Number (EIN) from the Internal Revenue Service (IRS)
After submitting your articles of incorporation, you must receive an Employer Identification Number (EIN) from the IRS. Your corporation is identified by this number for tax purposes.
Step 4: Write Your Board’s Bylaws and Host Your First Meeting You must write your corporation’s bylaws after obtaining your EIN. The regulations governing how your corporation will function are its bylaws. In order to elect officials, enact your bylaws, and approve the issuing of shares, you must also call your first board meeting. Benefits of Having Your Business Incorporated in Michigan The benefits of incorporating your firm in Michigan are numerous. First, incorporation might reduce your personal accountability for debts and legal actions incurred by your business. Second, selling stock shares is one way for businesses to raise money. Third, corporations can survive even if their owners pass away or sell their stock. Finally, incorporation can give your company respectability, increasing its appeal to clients and investors. Does “Incorporate” Mean “LLC”? No, creating an LLC is not required in order to incorporate a business. An LLC is a hybrid entity that combines the liability protection of a corporation with the tax advantages of a partnership, whereas a corporation is a separate legal entity from its owners. Cost of Business Incorporation in Michigan Depending on the sort of corporation you establish and the services you employ to incorporate, the cost to incorporate a business in Michigan varies. The Michigan Department of Licensing and Regulatory Affairs’ (LARA) $60 filing fee is for articles of incorporation. Additionally, you might want to think about using an internet incorporation service or hiring an attorney, both of which can run you anywhere from a few hundred to a few thousand dollars. Are Incorporated Businesses for Profit? Yes, incorporated businesses are frequently for-profit organizations. However, some corporations, like charity or educational institutions, may be established for non-profit goals.