Once you have started an LLC in Michigan, you will have to ensure that you stay compliant. This includes permits, licenses, taxes, and state filings. Failure to comply has serious consequences and these can include fines, tax penalties, and the dissolution of your LLC in the state of Michigan.

It is best that when you start a Michigan LLC, you appoint a registered agent service to ensure that your correspondence is received. The role of a registered agent service is to be available during office hours to receive any compliance notifications and to ensure that you are made aware of them. This service offers you peace of mind, as you go about the day-to-day running of your business. As your registered agents receive these notifications, they notify you of the dates by which they must be filed or paid, and they keep copies of these for future references.

Compliance requirements in the state of Michigan

Michigan is a popular state for LLC formations and more than 45,000 LLCs are formed there annually. However, you need to comply with federal, state, and local government regulations.

Business license and permits

As with every state, you will need to research the requirements. The U.S. Small Business Administration (SBA) has a guide about the federal business licenses required. A Michigan state permit is also required and the state website is Michigan Department of Licensing and Regulatory Affairs (LARA), where you can research the requirements for your LLC.

You also need to contact the local county clerk for the area where you are operating your LLC and they will tell you what licenses or permits are required.

These permits and licenses need to be renewed regularly so you need to ensure that you receive all compliance notifications.

Sales Tax

You will need a seller’s permit if you are selling a physical product in the state of Michigan. This is registered through the Michigan Taxes section of the Department of Talent and Economic Development and can be done online.

This certificate allows you to collect the sales and use tax on taxable sales that are levied by states, counties and municipalities.

Employer Tax

When you first register your LLC, you will have obtained an EIN, which is a Federal Employer Identification Number. You pay an Unemployment Insurance Tax for your employees and it is paid through the Michigan Unemployment Insurance Agency. In Michigan, Employee Withholding Tax is also something you must sign up for through the Michigan Department of Treasury.

Annual LL Report

All LLCs in Michigan must file an annual report to the state. If this filing is missed the consequences can be dire for your business and can lead to fines or its dissolution. Filings are due on February 15 each year and have a filing fee of $25. Late filings must pay $50 as a late fee.

If your business was formed after September 30, you are not required to file an annual statement on February 15 immediately after its formation.

These filing can either be mailed, but must arrive before the due date, or they can be submitted online.

Can a dissolution be reinstated in Michigan?

LLCs that have failed to comply with the Annual Report Filing do face dissolution in the state of Michigan. One of the reasons that the services of a registered agent are invaluable is that you will not forget the compliance filing.

However, you can apply to have the LLC restored by the state. The restoration of good standing requires the annual statements and fees of all the years which were not filed and paid. There is also a fee for filling in the certificate of restoration of good standing. The fee for the certificate is $50, and each year’s outstanding filing is $25.

Reducing the administrative burden by using the services of a professional registered agent and accountant can help you run your Michigan LLC better. You have more time to grow your business, and they remind you and help you with all of the compliance requirements of the state.