# Forming a Corporation in Michigan
If you are wondering how to form a corporation in Michigan, the most important step is to file incorporation documents with the state. You will be required to prepare and submit the Articles of Incorporation pursuant to MI Comp L § 450.1202 (2020). You can incorporate online or file the articles by mail with the Michigan Division of Licensing and Regulatory Affairs (LARA), Corporations Division.
## Preparing to Incorporate
Before filing any formation documents, it’s essential to check that your desired corporate name is available for use in Michigan. Conducting a business entity search on the Michigan Department of Licensing and Regulatory Affairs website will uncover any potential conflicts. If your business name passes the initial availability check, you can reserve the exclusive right to use that name for the next six months by filing a name reservation application with the state. Appointing a Registered Agent is also a crucial step.
## Incorporation Timeline and Costs
Processing times for new Michigan Corporation applications vary depending on the workload of the Secretary of State's staff. Normal processing takes around 5-7 business days. The total cost and step-by-step instructions on incorporating vary, with options to do it yourself or purchase incorporation services from trusted providers such as Northwest ($29 + state fee).
## Why Incorporate in Michigan?
Michigan offers many advantages for businesses, including low taxes and an educated workforce. A registered agent is an individual or company designated to receive legal notices for your corporation. Understanding Michigan's corporate laws is crucial when planning to set up a corporation.
## Steps to Start a Corporation
You can open a Michigan corporation by taking the following steps:
1. Name Your Michigan Corporation
2. Choose a Registered Agent
3. Hold an Organizational Meeting
4. File the Articles of Incorporation
5. Get an Employer Identification Number (EIN)
These steps ensure that you start your corporation in Michigan correctly, adhering to all legal requirements and setting a solid foundation for your business.
## Steps After Forming a Corporation
After incorporating, there are several actions to take to ensure your business's success:
- Open a Business Bank Account
- Complete Michigan State Registrations
- Obtain Michigan Business Licenses and Permits
- Establish a Business Accounting System
- Set up Credit Card Processing
- Sign Up for Business Insurance
Maintaining records and staying current on state requirements is also imperative for long-term success.
## Registration Assistance Services
Incorporation services offer step-by-step guidance starting at $99. These services typically include online ordering for customized corporation setups.
## Starting a Business in Michigan
Michigan's business climate is favorable due to an affordable cost of living in certain cities, an educated workforce, and moderate income taxes. Free online resources are available to assist Michigan entrepreneurs with business plans, financing advice, licensing details, tax tips, and more.
Register your business through official state channels to take advantage of state-sponsored support programs designed to promote the growth of small businesses.
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