‹ Michigan Filing Guide · All Penalties

Michigan LLC Penalty for Not Registering

Operating in Michigan without a certificate of authority can trigger a civil penalty under state statute and bar your LLC from Michigan courts. See the consequences and next steps below.

$100-$1,000/month, up to $10,000 for the LLC; separate personal fines up to $10,000

Michigan stacks penalties hard. You owe $100 to $1,000 per calendar month for up to 5 years of unregistered operation (entity cap $10,000), PLUS a separate $10,000 cap per individual manager, member, or authorized person who participated. You also owe back fees, you can't maintain any action in Michigan courts until you register, and the court will issue an injunction barring further business until you pay every penalty and obtain the certificate of authority.

What's at stake If you don't register Severity
Civil penalty$100 to $1,000 per calendar month for up to 5 years, capped at $10,000 for the entity, plus a separate $10,000 cap per individual manager, member, or authorized person who participated. Registering now does not necessarily remove a penalty for earlier activity.Checked Sep 26, 2026 · legislature.mi.govHigh
Back fees on cureYou owe every fee and tax that would have been due if you had registered on time. Applicable charges include registration fees and annual report fees, following each charge's own filing schedule. A one-time registration fee is not charged again for every unregistered year.High
Right to sue in state courtClosed. You cannot bring or maintain any lawsuit in state court until you register. If you need to sue a customer, a partner, or a vendor, you have to register first. You can still defend yourself if someone sues you.High
Contract validityContracts generally remain valid, but registration may be required before you can sue to enforce them.Low
Personal liabilityIndividuals involved in doing business without registration can face a separate civil penalty. The statute below identifies who is covered and the conditions. This is separate from liability for the LLC's debts.High
State tax exposurePossible. Michigan corporate income tax applies to an LLC taxed federally as a C corporation. An LLC taxed as a partnership or S corporation is a flow-through entity and does not pay it. Other filing and payment duties, such as sales tax, may still apply.Medium
How it gets enforcedThe Attorney General can bring enforcement proceedings under the cited statute. Timing and outcomes depend on the case.N/A

Last reviewed Oct 28, 2026. See statutory citations ↓

Statutory citations and verbatim text
Court access
MCL 450.5007(1)
"A foreign limited liability company transacting business in this state without a certificate of authority shall not maintain an action, suit, or proceeding in a court of this state until it has obtained a certificate of authority."
Civil penalty
MCL 450.5007(6)
"A foreign limited liability company that transacts business in this state without a certificate of authority is subject to a civil penalty, payable to the state, of not less than $100.00 nor more than $1,000.00 for each calendar month, not more than 5 years prior to the imposition of the penalty, in which it has transacted business without the certificate. The penalty shall not exceed $10,000.00. Each manager, member, or authorized person who authorizes, directs, or participates in the transaction of business in this state on behalf of a foreign limited liability company that does not have a certificate is subject to a civil penalty, payable to the state, not to exceed $10,000.00."
Contract validity
MCL 450.5007(3)
"The failure of a foreign limited liability company to obtain a certificate of authority to transact business in this state does not impair the validity of any contract or act of the foreign limited liability company or prevent the foreign limited liability company from defending any action, suit, or proceeding in a court of this state."
Personal liability
MCL 450.5007(6) and (8)
"Each manager, member, or authorized person who authorizes, directs, or participates in the transaction of business in this state on behalf of a foreign limited liability company without a certificate of authority is subject to a civil penalty payable to the state, not to exceed $10,000 per individual (MCL 450.5007(6)). Note: limited liability for company debts is preserved - members are not liable for the LLC's debts and obligations solely because the company transacted business without a certificate of authority (MCL 450.5007(8)). Two distinct concepts: members face direct civil penalty exposure for their own participation, but retain veil protection for company debts."

Here's how to fix it before any of this catches up to you.

You can file the foreign qualification yourself directly with the Michigan Department of Licensing and Regulatory Affairs for the standard filing fee. A wrong form version, a missing certificate of good standing from your home state, or a name conflict with an existing entity can delay approval. Check the form and required documents before submitting. The consequences of remaining unregistered are described above; they do not all accrue weekly.

File it yourself$50 + $125 = $175, the state fee plus a registered agent for the year

Have Northwest file it$50 + $225 = $275, the state fee plus the service, one year of registered agent included

These totals cover registration and the listed service only. Back fees, penalties, taxes and required attachments are extra. The DIY example includes a paid agent. State fees paid by card through Northwest carry a 2.7% card charge. Both routes leave you with the same registered agent obligation from year two.

Have Northwest prepare and submit the filing

Want help with the paperwork? Northwest can prepare and submit your foreign registration and serve as your registered agent. Hiring a service does not erase overdue fees, taxes or penalties.

Have Northwest register your LLC in Michigan ↗
$225 + the state fee · One year of registered agent included · Same-day filing

Other options

Registered Agents Inc
$200/year · Report filing included, state fees extra
Visit site ↗
Harbor Compliance
$99 first year, then $159/year · Full-service compliance option
Visit site ↗

Comparing services first? Read our full Northwest Registered Agent review and Harbor Compliance review for pricing, renewal behavior, and what each is best at.

Filing yourself anyway? See the Michigan foreign LLC registration guide for the form, fee, and step-by-step process.

More Michigan guides

Check your compliance

Answer 3 questions to find out if your LLC needs to register in other states.

Start free compliance check ↗

Need to change your registered agent?

See the form, fee, and step-by-step process for changing your registered agent in Michigan.

Michigan change of agent guide ↗

Not sure if you need to register?

Learn what counts as “doing business” and which activities trigger the foreign qualification requirement.

What triggers foreign qualification? ↗

Need a certificate of good standing?

See what Michigan calls it, the state fee, and how to order it for a foreign registration.

Michigan good-standing guide ↗

This page provides general information based on publicly available Michigan statutes. It is not legal advice and is not a substitute for advice from a licensed attorney about a specific situation. Statutes change. Court interpretations vary by case. Verify current statute text with the Michigan legislature before relying on the information here. If you are facing enforcement action or a pending lawsuit, consult a Michigan business attorney.