Michigan gives you a bit more rope than most states, but not unlimited rope. An LLC that skips its annual statement doesn't get dissolved the first year; it falls out of good standing, and only after two consecutive years of not filing does Michigan automatically dissolve the entity. The way back is a Certificate of Restoration filed with LARAthe Department of Licensing & Regulatory Affairs, Corporations Division, along with the past-due statements. This page walks the whole process, its modest cost, and when reviving the LLC is worth it versus closing it and starting clean.
What does automatic dissolution mean in Michigan?
Every Michigan LLC files an annual statement with LARA by February 15 each year. It's a short filing confirming the registered agent and registered office, with a fee of around $25, not a tax return. Miss one and the LLC is no longer in good standing. The consequential threshold is two: under Michigan's LLC statute, an LLC that fails to file its annual statements for two consecutive years is automatically dissolved.
Because it's tied to the annual statement rather than to tax, this is a LARA action, not a Department of Treasury one. A dissolved Michigan LLC loses its good standing, can lose the exclusive right to its name, and shouldn't be transacting business under the entity, but it isn't gone for good. Michigan keeps it on the record and lets you restore it by filing the past-due statements and a Certificate of Restoration, generally without a short outer deadline for LLCs.
How do you reinstate an LLC in Michigan, step by step?
- Confirm the status. Check the entity in LARA's records to confirm it was automatically dissolved and identify which annual statements are outstanding.
- Check your name is still available. Search LARA's records to confirm no other business registered your name while you were dissolved.
- File the past-due annual statements. Bring the annual statement obligation current for each year you missed, paying the fee for each.
- File the Certificate of Restoration. Submit the restoration (renewal of existence) to LARA, confirming the registered agent and office.
- Pay the fees. The restoration fee plus the back annual statement fees. Confirm the current amounts with LARA before filing.
- Confirm active status. Verify LARA's record shows the LLC active again before you rely on it for banking, contracts or licensing.
What does reinstatement cost in Michigan, and how long does it take?
Michigan is on the inexpensive end. There's no franchise tax to clear, so the cost is just the restoration fee plus the back annual statement fees, around $25 per missed year, for however many statements you skipped. A company dissolved after two missed statements is therefore looking at the restoration fee plus roughly two years of $25 statements. Confirm the current annual statement and restoration fees with LARA, and total your own figure from your specific missed years rather than working off an estimate.
Timing depends on the filing channel and LARA's current volume. Online filings generally process faster than paper, and standard processing is usually a matter of days to a couple of weeks. Processing times vary, and expedited service may be available for an additional fee if you're against a deadline, confirm the realistic window with LARA if timing matters.
One more thing to budget for: a valid registered agent and registered office in Michigan. If your previous agent resigned or moved on while the LLC was dissolved, common when a business winds down informally, you'll need a current one in place before the restoration is accepted, and a commercial provider carries its own annual cost. It's a small line item, but it's the kind of thing that stalls a filing at the last step. Add it to the restoration fee and the back statement fees when you total what reviving the entity actually costs, and weigh that combined figure against simply forming a fresh Michigan LLC if this one has no real history worth keeping.
What do you have to clear first in Michigan?
- Every past-due annual statementrestoration requires catching up each one.
- The back statement feesaround $25 per missed year.
- The restoration feethe Certificate of Restoration filing fee.
- A registered agent and officeconfirmed as part of the filing.
- Name availabilitynot a fee, but a prerequisite if you want your original name back.
Michigan's automatic dissolution is a statement lapse rather than a tax matter, so there's typically no separate tax-clearance certificate for LLC restoration, but any Michigan tax the LLC genuinely owes remains its own obligation to resolve with the Department of Treasury.
What happens to your EIN and federal taxes in Michigan?
Here's the piece Michigan's restoration process never touches: your EIN and the IRS business account behind it. Whether you restore the LLC or let it go, filing the past-due statements and Certificate of Restoration only settles the state side of the ledger. The IRS keeps its own separate record, and the two don't talk to each other.
If you're restoring to keep operatingthe federal side simply continues, the same EIN carries on and you keep filing federal returns each year as normal. Restoring the entity with LARA changes nothing about your federal obligations, and a restored LLC that stops filing federal returns just creates a fresh problem later.
If you're leaning the other way, closing the LLC rather than restoring it, remember that the IRS never cancels an EIN. The number is permanent and is never reassigned. Instead you ask the IRS to close the business account attached to the EIN, and it won't do that until your final federal returns are filed and marked final. This is the single most-missed step when people close a company themselves: they file the state paperwork, assume they're finished, and leave an open IRS account quietly expecting returns.
Because Michigan's fees are low, a dissolved LLC can sit quietly for years, which makes it all the more likely to have loose federal threads: an open IRS account nobody remembered, plus unfiled returns. Settling the winding-up properly, providing for any debts, filing the outstanding returns, and closing the IRS account, is what turns a dissolved-and-forgotten Michigan LLC into one that's genuinely, finally closed.
Should you reinstate, or dissolve and start fresh?
Because Michigan's restoration is cheap and there's no franchise tax stacking up, the decision comes down to whether you actually want the entity, not to escaping mounting fees.
Reinstate when the LLC is a real, ongoing business: contracts, licenses, property, a bank account, or a name and reputation tied to that specific entity. Restoration preserves continuity for a modest cost, which is easy to justify when the company matters.
Dissolve and start fresh when the LLC never really traded and holds nothing worth keeping, particularly if it ever obtained an EIN, since that IRS account stays open regardless of what LARA shows. Restoring a dormant shell just to keep filing annual statements on it rarely pays off; a clean close ends the state obligations and lets you close the IRS business account too, and you can form a new Michigan LLC whenever you need one. We work through that decision on reinstate or start a new LLCwith background under administrative dissolution.
If a clean close is the right move, that's the job we do. See how to dissolve an LLC in Michigan for the voluntary route, or the full dissolution guide for the complete picture.
Not sure which way to go?
Michigan's low fees make it easy to leave a dissolved LLC undecided, but an open IRS account or a lost name are loose ends worth resolving. A specialist can give you a straight read on whether restoring or a clean close makes more sense for your situation, even when the honest answer is that you don't need us.
Reinstate, or close it cleanly?
If restoring a dormant Michigan LLC isn't worth it, closing it properly, IRS account included, is the job we do. Ask a specialist first, no obligation.
This page explains Michigan restoration for information. Filings are made with Michigan LARA directly; our own service is business dissolution, not reinstatement. Fees change, confirm current requirements with LARA before filing.