Filing a Michigan Corporation
First-time business owners will likely be interested in the Michigan Corporation option because it offers numerous tax benefits and the fact that it is a way to garner instant credibility from customers and other entities. However, owners must be thorough during the administrative filing process.
Steps When Filing
Choose A Name
The first thing that new owners must do is choose a name for their business. The state of Michigan requires companies to include an indicator in their name. Corporations will need to add an indicator like, “Incorporated,” “Company,” “Corporation,” “Limited,” or an appropriate abbreviation, such as “Inc.” Additionally, owners will need to make sure that the name they choose is not already in use by another company. To ensure this does not happen, owners can use the DoMyLLC Name Availability Check Page.
Choose An Agent For Service Of Process
After choosing a name, owners will need to hire a registered agent. A registered agent accepts legal correspondence on behalf of the company. As you can imagine, their role is integral to a company’s success. Because of how vital a registered agent can be, many owners elect to hire a professional third-party company, such as DoMyLLC, to serve in the role.
File Articles Of Incorporation & Pay Filing Fees
Once owners have secured a name and registered agent, they’ll need to submit the Articles of Incorporation to the Corporations Division of the Michigan Department of Licensing and Regulatory Affairs. The minimum filing fee to do so is $60. Owners can also pay anywhere from $50 to $1,000 for expedited service. Information that owners will need to provide on these forms includes:
- The name of the company
- Purpose of the Corporation
- Total authorized shares
- A statement of all or any of the relative rights, preferences, and limitations of the shares
- Name and address of the registered agent
- Name and addresses of incorporators
- Signatures of incorporators
File Initial Report
A Michigan Corporation will not need to file Initial Report. However, they may need to do so in the future if they wish to expand across state lines.
Create Corporate Bylaws, Appoint Directors And Hold Meetings
After filing the Articles of Incorporation, the Corporation can hold its initial corporate meeting. Those who filed Articles of Incorporation are responsible for overseeing the meeting. Incorporators should appoint individuals to the board of directors at this meeting and record this information in the corporate records. Directors will serve on the board until the next annual meeting of the shareholders, where they will be up for re-election.
Once the board is in place, directors can outline define the role of officers and elect individuals to serve in these positions. The board will also need to draft corporate bylaws. Bylaws are private and act as an internal operating manual for the company. They are a matter of corporate compliance, as a Corporation cannot exist or conduct business until the board of directors has adopted them. Although private, many insurers and banks will ask for proof of bylaws before entering into business with a Corporation.
While at the initial corporate meeting, directors can issue stock and begin to maintain a stock ledger. The board of directors is responsible for issuing stock throughout the life cycle of the Corporation, and their approval is needed for any issuance. The amount of stock that they can issue is outlined in the Articles of Incorporation. It’s also imperative that they keep a ledger to protect the corporate veil and provide transparency to potential investors.
Obtain Employer Identification Number
The Corporation will need to obtain an Employer Identification Number from the IRS. With this number, they can secure a business banking account, hire new employees, and file taxes.
File Michigan Required Annual Reports
A Michigan Corporation will need to file an Annual Report by May 15 each year. There is a $25 fee to do so. Officers can learn more at our Michigan Annual Report page.
The organization will also need to file taxes and renew all licenses and permits annually. They must do so at both the state and federal levels.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, we understand how easy it is for new business owners to become overwhelmed by the administrative and regulatory requirements needed to start a business. That’s why we streamline the process so that we can help with all of your organizational needs. Our services include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of Michigan’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
Investing in assistance from a third-party company allows you to focus on the day-to-day operations of your business. Contact us today to learn more about how we can help.