Moving your business to Michigan

Why choose Michigan for your business?

Every state in the USA provides various benefits to different kinds of businesses. The state of Michigan is one of the fastest-growing technology states that boasts of a pro-business climate. The state offers several business incentive programs including tax credit programs. If you transfer a business to Michigan then you will also be able to leverage the strong infrastructure as well as a wide variety of small business resources that will make moving LLC to Michigan or a corporation easier, more efficient, and inexpensive. Let’s look at some of the top benefits of relocating to this state.

Talented workforce

One of the top business benefits in Michigan is the availability of a talented workforce. Each business has a different requirement when it comes to employing talent and hence the talent pool is also quite diverse in the state. The existing talent pool plays a key role in developing the overall business climate as well. According to Nexient, a software company, Michigan has good engineering schools from which startups as well as Fortune 500 companies could recruit. After moving your business to Michigan, you will be able to leverage a workforce that is defined by grit, integrity, as well as a culture of innovation.

Global connectivity

One of the areas that many companies look at while thinking of relocation is global supply chain assets or global connectivity infrastructure. If you transfer a business to Michigan then you can benefit from onshoring and near-shoring solutions, which is an integral part of the state’s FDI Strategy. Today, Michigan is considered to be one of the top global destinations for Foreign Direct Investment (FDI). Foreign trade and global connectivity are possible as Michigan is home to 33 active deep water ports, 18 commercial airports, and 26 freight railroads. This is one of the top business benefits in Michigan. It is considered the strategic connection of distribution and transportation routes and creates a cost-effective supply chain for small businesses and medium enterprises.

Low cost of living

Michigan is affectionately known as the Mitten State and is considered to be one of the top 10 most affordable cities in the nation. Whether you are looking at the cost of living from a business or an individual perspective, it is low in most top-tier cities like Ann Arbor and Lansing. If you are considering moving your business to Michigan, some of the other low-cost cities to consider are Jackson, Okemos, Holland, Midland, and Rochester Hills.

Business incentives and grant programs

One of the most valuable and top business benefits in Michigan is the state business incentive and grant programs. The business incentives vary according to industry and also include tax credits. Apart from loans and other funding sources, the state provides grants under the MI Business Grant Program. When you transfer a business to Michigan, you can benefit from the following incentive and funding programs:

• MEDC Capital Access
• Michigan’s State Trade Expansion Program (MI-STEP)
• Michigan Mobility Funding Platform
• Early Stage Funding Programs
• DTE Small Business Program
• Michigan Business Development Program (MBDP)
• Critical Industry Program (CIP)
• Work Opportunity Tax Credit (WOTC)
• Small Business Alternative Credit
• MBT Certificated Credits
• State Essential Services Assessment (SESA) Exemption

Domesticating Your Company in Michigan

As a business or individual planning to relocate to Michigan, you may have several questions. One of the most commonly asked questions: “Does Michigan allow domestication, and what are the state laws or regulations applicable to proceed?” Domestication refers to changing the domicile of your corporation or LLC from any other state to Michigan. Unfortunately, Michigan business law does not have any provisions for entity domestication but there are other options available like conversion to a domestic entity and applying for foreign qualification.

Steps to Move a Corporation to Michigan

There are several benefits of moving a corporation to Michigan where the state provides just the right combination of infrastructure, resources, and support. This along with state incentive programs for small businesses makes Michigan an attractive option for new entrepreneurs as well as those who want to relocate their existing businesses. The big question is: “How do you transfer a business to Michigan?” The good news is that there are two options available, and we have included them below.

Register as a Foreign Corporation

One of the first options for moving your business to Michigan is to register it as a foreign company. This is a recommended option for those entrepreneurs who want to operate their business in the home state (incorporation state) as well as Michigan. If you are moving a Corporation to Michigan using the process of foreign qualification, as governed by 2022 Michigan Compiled Laws, Chapter 450 – Corporations, Act 284 of 1972 – Business Corporation Act, Chapter 10 Foreign Corporations. The process for foreign qualification is as follows:

• You need to designate a registered agent in Michigan for handling service of process
• Identify a corporate name or an assumed name and register the said name
• Submit a Certificate of Good Standing along with the name registration application
• Apply for a certificate of authority pursuant to MI Comp L § 450.2001 (2022) along with a fee of $60

Do you want to form a foreign corporation in Michigan?

Dissolve a home Corporation and establish a new Corporation in Michigan

The second option for moving a Corporation to Michigan is a lengthy process wherein you have to dissolve the existing company and form a domestic corporation in Michigan. The process of dissolution will be governed by the laws of the home state or the state of incorporation. Let’s look at an example to understand this.

Example: If you have an existing corporation in the state of Florida then you will first need to file the Articles of Dissolution for Florida Profit Corporation. Prior to filing the articles, you will need to obtain approval from either the shareholders of the said company or the corporation’s directors. Some states like Florida have a filing fee for Dissolution while others don’t.

• Appoint a Michigan registered agent to facilitate service of process
• Identify and reserve a corporate name using the Application for Reservation of Name
• File Articles of Incorporation pursuant to MI Comp L § 450.1202 (2022) along with the appropriate fee
• Prepare bylaws for your Michigan Corporation
• Apply for necessary business licenses and permits

Steps to Move an LLC to Michigan

The state of Michigan provides a pro-business environment that facilitates the success, growth, and expansion of small businesses and medium enterprises. The state is home to diverse industries and you can transfer a business to Michigan in any of these high-growth industries. Some of the top industries include advanced manufacturing, technology cluster industries, auto production, the semiconductor industry, and the financial services sector among others. The following two options make moving LLC to Michigan possible.

Register as a foreign LLC

Moving your business to Michigan can be highly beneficial from the perspective of expansion. In a scenario where you would want to operate your company in the existing state and also expand to Michigan, the solution that works best is to register your LLC as a foreign entity. The process of moving an LLC to Michigan is known as foreign qualification. The process of foreign qualification is governed by the 2022 Michigan Compiled Laws, Chapter 450 – Corporations, Act 23 of 1993 – Michigan Limited Liability Company Act, Article 10. The following steps would be helpful with registering a foreign LLC:

• Hire and maintain a registered agent in Michigan for handling service of process pursuant to MI Comp L § 450.4207 (2020)
• Identify a name and register the business name or assumed name of the said LLC by filing a Michigan Assumed Name Certificate
• Submit a Certificate of Existence or Certificate of Good Standing from the home state
• Apply for a Certificate of Authority to Transact Business in Michigan pursuant to the provisions of Act 23 of the Public Acts of 1993

Do you want to register a foreign LLC in Michigan?

Dissolve a home LLC and form a new LLC in Michigan

If you are thinking of moving an LLC to Michigan but don’t want to operate your company in two different states then this is a viable option. All you have to do is close or dissolve your limited liability company in its current state and register a new LLC in Michigan. The procedure can be exhausting as you will be required to file different types of documentation in the former and new state before you will be able to transfer a business to Michigan. Let’s look at an example to understand this.

Example: If you are operating a limited liability company in the state of Colorado then you will first need to file a Statement of Dissolution for Colorado LLC. The LLC dissolution can be categorized as a voluntary, Administrative, or Judicial dissolution. There is a $25 fee for filing this statement. You will also need to collect a certificate of good standing from Colorado, which will be submitted in Michigan.

• Appoint a Michigan registered agent to facilitate service of process
• Identify and reserve a business name using the Application for Reservation of Name after conducting a name availability search
• File Articles of Organization pursuant to MI Comp L § 450.4203 (2022) along with the appropriate fee
• Prepare LLC operating agreement
• Apply for necessary business licenses and permits

Move Your Business to Michigan with IncParadise

Michigan is fast becoming one of the most popular tech hubs for startups and foreign entities. Its robust infrastructure and the availability of a talent pool help businesses to achieve steady growth and accelerate their expansion plans faster. If you want to transfer a business to Michigan then the state presents many opportunities. IncParadise can help you with the process of moving a Corporation or LLC to Michigan with ease.