General Guide to Company Incorporation in Michigan
Updated on Tuesday 13th February 2018
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Michigan is the state formed of two peninsulas, it is the 10th most populated in USA and it is known as the Great Lakes State due to its location in the eastern part of Mississippi River and to the lakes that border this state. Among the economic facts of Michigan, the state is placed on the 13th position regarding the GDP (gross domestic product) and it is representative in the technology and the automotive sectors in USA. We have prepared a general guide to company incorporation in Michigan and we invite local and foreign entrepreneurs to discover a few important aspects on how a company can be registered in this state. Likewise, our company formation agents in USA are at your disposal with assistance and information when registering any kind of business in Michigan, but also in other American states.
How to set up an LLC in Michigan
Known as a state which registered a multitude of developments in a wide range of industries, Michigan is seen as a suitable business destination for foreign investors. In this sense, the limited liability company might be a proper solution when registering a business, but entrepreneurs can also set up partnerships or perform activities as sole proprietorships.
Starting a business in USA, and particularly in Michigan, is subject to incorporation formalities with the business division of the Secretary of the State of Michigan and a name verification as a first stage. Once the approvals on the name have been made (the name must contain LLC, L.L.C., or Limited Liability Company at the end of it), a registered agent must be appointed. This can be whether an individual or a company, in charge of conducting the activities in legal forms, but bearing in mind that the residency must be in the state of Michigan. You can set up a company in Michigan and appoint our specialists in company formation in USA as registered agents for your firm. Moreover, our team can help you with drafting and submitting the Articles of Association which must comprise information about the name of the company, the shareholders, the business address, the registered agent, and the board of directors. Please bear in mind that our team can help you register a company in USA without having to relocate to Michigan or in any state.
An operating agreement for your business in Michigan
Even though it is not a mandatory request, it is though suggested to create and sign an operating agreement for your company in Michigan. This represents a legal document which comprises information about the owners, their liabilities, the voting rights, the financial status, the working relations among the members, and details about the dissolution.
Apply for the Employer Identification Number in Michigan
The EIN or the Employer Identification Number is issued for tax purposes by the IRS (Internal Revenue Service) which is why is also named the Federal Tax Identification Number. This is the legal proof that you have been registered for tax purposes in Michigan and that you will conform with the tax structure of the state. Even more, an EIN is necessary when opening a bank account in Michigan.
Taxes in Michigan
The sales tax in Michigan is set at 6% and it is applicable to any trading activities of your company. Also, Michigan imposes the following:
• rental tax;
• consumer use tax;
• lodgings tax.
It is good to know that there is no county sale tax or a city sale tax for Michigan’s cities. A proper understanding of the taxes in this state can be offered by an accounting firm which is also necessary for the overall financial activities in your firm.
Applying for licenses and permits in Michigan
Depending on the type of activities you wish to establish in Michigan, particular licenses and permits might be necessary. You can apply for the needed license with the Chamber of Commerce in Michigan through the representative offices.
Company formation services we can offer in Michigan
If you are interested in the steps of the company formation in USA and particularly in Michigan, you can rely on the complete support offered by our team of company incorporation consultants in USA. Our advisors can provide you with the following company formation services:
• support in documents preparation and submission to the related authorities;
• financial consulting;
• tax advice;
• accounting services;
• virtual office services;
• wealth management.
Economy facts about Michigan
Michigan is among states with economic stability, well-developed industries and high living standards. The state is recognized as an important financial center and home to varied corporations in the automotive sector among many others. The engines of the economy in Michigan are strongly related to the agriculture field, mining, IT and engineering, energy, and tourism. Lansing is the capital of Michigan and a reliable financial hub recognized by many investors at an international level. Detroit, Ann Arbor, Kalamazoo, Flint, Dearborn are a few of the representative cities on Michigan which can be selected for future operations by both local and foreign investors.
For complete support when setting up a company in USA, and especially in Michigan, we kindly invite you to contact us.