Michigan corporations: How to form and maintain your Michigan corporation

Should you form your corporation in Michigan? We've collected the relevant information that will help you make this decision.

Pros

• Low real estate costs

• Qualified workforce

• Home to one of the top 20 metro areas in the US

Cons

• Sales tax rate of 6%

• Competitive market

• Among top 10 worst states for business (Forbes 2016)

Cost of doing business

• $60 filing fee / $25 annual statement

Privacy

• Owners are disclosed in original filing

Forming your corporation in Michigan

The name In order to communicate to the public that your new business is incorporated, its official name will need to end with one of the following signifiers (or a relevant abbreviation): “incorporated”, “Company”, or “corporation.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also restrictions on several terms common in the financial services industry. Do a FREE name search now.

Board of directors requirements You will need to form an official board of directors when incorporating in Michigan. Here are the states explicit regulations regarding these directors:

• Required number of directors

  Michigan corporations must have at least one director listed in their incorporation documents.

• Age restrictions

  Directors of corporations located in Michigan must be at least 18 years of age.

• Residence restrictions

  There are no residence restrictions imposed on the directors of C corporations in Michigan. However, S corporations are only allowed to have directors located in the United States.

• What information needs to be included in the Articles of Incorporation?

  Michigan does require the names or addresses of directors to be disclosed in incorporation documents.

Requirements for the Articles of Incorporation

The Articles of Incorporation is a document that must be filed during the incorporation process. Here is the information that must be included in this document when filing in Michigan:

Stock information Michigan requires the number of initial shares outstanding, and their par value, to be disclosed during the incorporation process. The number of outstanding shares does not affect initial state filing fees.

Officer information The state of Michigan does not require officer information to be disclosed during the filing process.

Registered agent information All Michigan corporations must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.

If your business is a professional practice Professional service corporations are permitted to form under the professional corporation (PC) structure.

Corporate record keeping requirements Corporations in Michigan are required to keep formal documentation of all major company decisions, financial documents, and shareholder information.

Michigan Corporate taxation and fee requirements

There are several tax and fee requirements that must be addressed by corporations in Michigan. They are as follows:

Taxation All states have complex taxation requirements. For more information regarding taxes in Michigan, it is advised that you visit the state’s official business related website. 

Annual report requirements Corporations in Michigan are required to file an annual report by May 15th every year. The cost associated with this filing is $25. Learn more about annual reports.

Tax identification numbers Michigan requires an EIN (employee identification number) for all corporations that will have employees, and most banks will require one to open accounts. Michigan does not require corporations to obtain state tax ID numbers. Learn more about EINs.

Business license requirements

The business licenses and permits required in Michigan vary wildly depending on the county or municipality in which your new corporation is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.

S corporation election Michigan does not require a state-level S corp election, as they recognize any elections held at the federal level.

Need a Michigan LLC instead? Click here.