A contractor files for an LLC in Michigan. What is the required filing fee with the Michigan Department of Licensing and Regulatory Affairs?
Correct Answer
D) $50
Michigan charges a $50 filing fee for LLC formation with LARA.
Why This Is the Correct Answer
The Michigan Department of Licensing and Regulatory Affairs (LARA) charges a $50 filing fee for the formation of a Limited Liability Company (LLC). This is the base fee for filing Articles of Organization with the state. Michigan's LLC filing fee is notably lower than many other states, making it an affordable business structure option for contractors.
Why the Other Options Are Wrong
Option A: $25
$25 is below Michigan's actual LLC filing fee. While some states charge fees in this range for other types of filings (such as annual reports or assumed name registrations), Michigan's LLC formation fee is $50.
Option B: $150
$150 significantly overestimates the Michigan LLC filing fee. This amount may reflect filing fees in higher-cost states or professional service fees added by filing agents, but LARA's direct filing fee for LLC formation is $50.
Option C: $100
$100 is double the actual Michigan LLC filing fee. This figure is plausible as a 'round number' guess, but Michigan's statute establishes the $50 amount for Articles of Organization filing.
Memory Technique
Michigan LLC = 'Fifty bucks to LARA.' Think of a $50 bill with the LARA logo on it. Michigan keeps it simple and affordable at $50 — no surprise amounts. If you're from Michigan, $50 sounds right for a state fee.
More Michigan Questions
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