Summary
The fact that you may need to register with state agencies like Michigan Secretary of State is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in Michigan, use this guide to:
- Explore the that triggers the need to register with the Michigan Secretary of State, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the Michigan Secretary of State.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the Michigan Secretary of State?
Factors indicating "doing business" in Michigan:
- Physical Presence: Maintaining an office, store, warehouse, or any other physical location within Michigan's borders.
- Employees in Michigan: Hiring and having employees living and working within Michigan.
- Regular Activity: Consistently engaging in sales, providing services, or conducting other income-generating activities with Michigan customers or clients.
- Michigan-Based Income: Regularly generating revenue from sources located within Michigan.
Activities that Michigan might NOT consider "doing business":
- Isolated Transactions: Conducting sporadic sales or infrequent projects within the state without a continuous pattern.
- Litigation: Defending or bringing legal action within Michigan's courts.
- Owning Property: Simply holding property or investments within the state.
- Solicitation: Soliciting orders that are approved and filled outside of Michigan and where the company doesn't have a physical presence (this activity may be protected under Public Law 86-272).
Where do I register, and what else is required?
[Michigan Secretary of State]()
- A Certificate of Good Standing is required
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in Michigan. Here's a Michigan specific guide we put together.
What is the registration fee?
The fee charged by Michigan is $60 (if registration is needed).
How long does Michigan usually take to process?
Michigan usually takes approximately 1 - 2 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at Michigan's:
C-Corporation
- Filing Date: By the 15th day of the fourth month following the close of your fiscal year.
- Filing Frequency: Biennial
LLC
- Filing Date: Not required
- Filing Frequency: Not required
Non-Profit
- Filing Date: by the 15th day of the fourth month following the close of your fiscal year.
- Filing Frequency: Annual
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for Michigan. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
