Incorporate In Michigan

Situated in the Great Lakes region, Michigan consists of two peninsulas, is the ninth most populous and the largest by total area east of the Mississippi River. Bounded by four of the five Great Lakes, this state is one of the leading recreational boating destinations.

The “Great Lakes State” enjoys a diverse economy based on manufacturing, high-tech industries and services, and is widely known as the center of the nation’s automotive industry. It also gave the world the great style of music known as “Motown.”

Benefits of incorporating in Michigan:

Protection of personal assets

Entrepreneurs incorporating in Michigan should feel confident knowing that their personal assets are protected. Corporations and limited liability companies separate the assets and liabilities of companies from the personal assets of the business owner.

Enhanced credibility

Whether starting a new business or incorporating an existing one, incorporation makes a business appear more credible to potential customers, suppliers and investors. You also have the security of operating under US law.

Your corporate name can boost your brand

Michigan requires that C corporations and LLC not have names that are the same or could be confused with a business already in existence. To make sure your business name is eligible Inc. Plan can help you choose a unique C-Corp or LLC name. A distinctive corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Tax flexibility and benefits

There are two types of taxes in Michigan: corporate taxes based on the company’s net revenue and individual taxes based on the owners’ personal income. The corporate income tax (CIT) applies to C-corps, insurance companies, and financial institutions. LLCs can choose which method of taxation they prefer for federal tax purposes.

Residency Requirements

Michigan does not have any residency requirements. Owners and directors do not need to live in state to legally operate a South Carolina company. Before your firm is legally eligible to operate make sure you possess all the required business licenses, permits, and tax registrations. Inc. Plan can help you stay in compliance with state law.

Other incorporating requirements

Incorporators in Michigan must be at least 18 years old and the filing documents must include the names and addresses of directors. There is no specific age required for LLC managers, nor must their names and addresses be included in the formation documents. Michigan law considers both C-corps and LLCs to be in compliance if they have one or more members.

Requirements for forming an LLC in Michigan:

When forming a Limited Liability Company certain steps must be taken to keep the business in compliance on an ongoing basis.

Name requirements for LLCs

LLC names are allowed to end with the terms “Limited Liability Company” or the abbreviations “LC”, “LLC” and “L.L.C.”. Michigan law does not allow the words “Bank”, “Industrial Bank”, “Security”, “Deposit”, “Surety”, “Trust” or “Trust Company”.

LLC filing requirements

If you decide to incorporate an LLC in Michigan, then the formation document you are required to file is the Articles of Organization. Additionally, Michigan-based LLCs are required to submit an annual report by February 15th.

Required information for the Articles of Organization

The Articles of Organization must include the name and address of a registered agent which resides in Michigan, and which is available to manage legal and tax business documentation. For more help with the incorporation filing or for registered agent services contact Inc. Plan (USA).

LLC taxes and fees

For tax purposes, Michigan LLCs can choose to be taxed as a partnerships or a C corps. Therefore, LLCs classified as partnerships will not be charged based on their net revenue, but based on their members’ taxable income.

Requirements for forming a C corporation in Michigan:

Each of the 50 American states has its requirements for incorporating. The essential requirements for C corporations established in Michigan are as follow:

Name requirements for C corporations

The organization name designations allowed in Michigan can include the terms “Company”, “Corporation”, “Incorporated” or “Limited”, along with their abbreviations. However, the state doesn’t allow the words “Bank”, “Industrial Bank”, “Security”, “Deposit”, “Surety”, “Trust” or “Trust Company”.

Filing requirements in Michigan

In order to form a corporation in Michigan, entrepreneurs must file an incorporation document called Articles of Incorporation and an annual report which is due by May 15th.

Required information for the Article of Incorporation

The Articles of Incorporation require a listing of the company’s authorized shares and par value, as well as the name and address of a registered agent with a physical Michigan address. Any increase in the share number can affect the initial filing fees. Inc. Plan (USA) can help you with the necessary filings and provide qualified registered agent service.

Taxes and fees requirements

The state of Michigan imposes an entity-level income tax for all C corporations. The tax rate applied is 4.95% and is calculated based on the net income generated from transactions computed in Michigan. Additionally, insurance companies must pay a premium tax, and financial institutions are subjected to a franchise tax. Receipts exceeding $350 000 require payment of a modified gross receipt tax.

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