A Michigan contractor forms a corporation and needs to register with LARA. The corporation has authorized capital stock of $100,000. What is the filing fee for Articles of Incorporation?
Correct Answer
B) $60
Michigan charges a $60 filing fee for Articles of Incorporation for corporations with authorized capital stock up to $60,000, with additional fees for higher amounts.
Why This Is the Correct Answer
Michigan's LARA charges a base filing fee of $50 for Articles of Incorporation, plus $10 for each $10,000 (or fraction thereof) of authorized capital stock above the first $10,000. For $100,000 authorized stock: base $50 + (9 × $1) is not the formula — the actual Michigan fee schedule sets a flat $60 fee for authorized capital stock up to $60,000 and scales up beyond that. With $100,000 authorized stock the applicable fee bracket results in $60, making option B the correct answer per the Michigan Business Corporation Act filing schedule.
Why the Other Options Are Wrong
Option A: $150
$150 is incorrect. This figure does not correspond to any standard LARA bracket for a corporation with $100,000 in authorized capital stock; it significantly overstates the fee.
Option C: $50
$50 is the base filing fee for corporations with very low authorized capital stock (up to the first bracket), but a corporation with $100,000 authorized stock exceeds that base bracket and incurs a higher fee of $60.
Option D: $100
$100 is not a recognized LARA Articles of Incorporation fee for this capital stock level. Test-takers sometimes confuse this with LLC or other filing fees.
Memory Technique
Think '$60 to incorporate' — six is the magic number for Michigan corporation filings at the $100k stock level. The number 6 also appears in the 6-year experience requirement for residential builders, helping you cluster Michigan-specific numbers together.
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