One of the first steps you should do when opening a business in Michigan is to register your business name. The Michigan Department of Licensing and Regulatory Affairs (LARA) is the appropriate place to do this. You can prevent others from using your company name in the state of Michigan by registering it.
You must submit a document known as the “Certificate of Assumed Name” to LARA in order to register your business name in Michigan. You can submit this form electronically or by mail. The registration is valid for five years, and the filing price is $10. It’s crucial to understand that trademark rights are not granted to you simply by registering your business name.
There are other expenses related to opening a business in Michigan in addition to registering your business name. Depending on the kind of business you’re creating and the area, the cost will change. For instance, you must submit articles of incorporation to LARA if you are forming a limited liability company (LLC). $50 is the filing fee for this. Articles of incorporation must be filed in order to form a corporation, and the filing fee is $60.
You could also require a seller’s permit if you intend to offer products or services in Michigan. With the help of this permit, you are able to collect sales tax from your clients and send it on to the state. You need to register with the Michigan Department of Treasury in order to get a seller’s permit. Registration for a seller’s permit is free of charge.
You might be wondering how to use your LLC to pay yourself once your firm is up and going. You have a few options for paying yourself as the owner of an LLC. As an LLC member or employee, you have the option to receive salary payments, profit distributions, or a combination of both.
Last but not least, if you are the sole owner of your LLC, you might be asking if this is even conceivable. Yes, it is the answer. A single-member LLC is legal in Michigan, as it is in the majority of states. Although it is taxed like a sole proprietorship, this kind of LLC nevertheless offers liability protection.
Finally, it should be noted that registering your business name in Michigan is an essential first step. A $10 filing fee is required through LARA to complete it. Fees for submitting articles of organization or incorporation, as well as maybe applying for a seller’s permit, are additional expenses related to beginning a business in Michigan. A single-member LLC is permitted in Michigan, and LLC owners can pay themselves through a combination of salaries and distributions.