Want to Start a Business in Michigan? This Guide Has You Covered!

Thinking about registering a company in Michigan, USA? Here’s everything you need to know!

In recent years, as the global economic environment continues to evolve, more and more entrepreneurs and businesses are choosing to establish companies in the United States. Michigan has gradually emerged as a popular hub for entrepreneurship. With its solid industrial foundation and favorable business environment, Michigan has been actively attracting investment and entrepreneurial activity through a series of supportive policies. If you're considering setting up a business in the U.S., Michigan might just be the ideal choice.

1. Advantages of Michigan’s Business Environment

Located in the Midwest of the United States, Michigan is one of the birthplaces of the American automotive industry and boasts a deep-rooted manufacturing base. In recent years, the state has made remarkable progress in promoting economic diversification, particularly showing strong growth in high-tech, green energy, and biopharmaceutical sectors.

According to the Michigan Economic Development Report released in 2025, the state has added more than 300,000 new jobs over the past five years, with the high-tech industry experiencing particularly rapid growth. Michigan is also actively building a robust entrepreneurial ecosystem, offering tax incentives, venture capital support, and other policies to attract substantial domestic and international investment and talent.

Notably, Detroit, Michigan’s largest city, is undergoing an economic revival. According to a 2025 report by the Detroit Free Press, the city has attracted over $5 billion in investments over the past two years, spanning real estate, technology incubators, and infrastructure development. This provides entrepreneurs with a favorable market environment and strong resource support.

2. Basic Steps to Register a Company in the U.S.

Registering a company in the U.S. typically involves the following steps

1. Determine the company structure The most common types include Limited Liability Company LLC, C-Corporation C-Corp, and S-Corporation S-Corp. LLCs are often preferred by startups due to their flexibility and tax advantages.

2. Choose a company name Ensure the name is not already registered in Michigan and complies with state regulations. You can check availability through the Michigan Business Entity Search.

3. Register the company Submit the registration application to the Michigan Department of Licensing and Regulatory Affairs. This usually involves providing basic company information, registered address, shareholder details, etc. The registration fee ranges from $50 to $250 depending on the entity type.

4. Apply for an Employer Identification Number EIN This is akin to a company’s social security number and is required for tax filings and opening a bank account. It can be obtained for free via the IRS website.

5. Open a business bank account Once registered, you can open a business bank account locally to facilitate financial management and operations.

6. Obtain necessary licenses and permits Depending on your industry, you may need specific licenses-for example, in food service, healthcare, or construction.

The entire process is relatively transparent. For non-U.S. residents, as long as all required documents and information are provided, the registration can be completed smoothly.

3. Tax Policies and Incentive Programs

Michigan’s tax policies are highly attractive for business growth. According to the 2025 updated tax code, the state corporate income tax rate is 6%, which is below the U.S. national average. Additionally, Michigan offers various tax credits and subsidies, particularly for companies in high-tech, clean energy, and advanced manufacturing sectors.

For example, the Michigan Economic Development Corporation MEDC launched the Small Business Growth Fund, offering qualified companies up to $500,000 in financial support. Companies investing in specific regions may also qualify for property tax exemptions for up to 10 years.

Moreover, Michigan actively participates in the Regional Center EB-5 Investment Immigration Program, facilitating foreign investment. For investors seeking to start a business in the U.S. through investment immigration, this is a significant policy advantage.

4. Industries Suitable for Business Registration

While Michigan is historically known for its manufacturing strength, its industrial structure has become increasingly diversified. Here are some promising sectors for business registration in the state

1. High-Tech and Software Development With the rise of tech parks in Detroit, Ann Arbor, and other areas, fields such as software development, artificial intelligence, and big data are rapidly expanding.

2. Green Energy and Sustainability Michigan actively promotes renewable energy projects, offering policy support to companies in solar, wind, and electric vehicle industries.

3. Healthcare and Biotechnology With world-renowned universities and research institutions, Michigan has a strong foundation in biotechnology and medical equipment development.

4. Manufacturing and Supply Chain Management Leveraging its traditional industrial base, emerging manufacturing fields such as automation, 3D printing, and industrial robotics hold great potential.

5. Preparations Before Company Registration

Before officially registering your company, consider completing the following preparations

Market Research Understand local market demand, competition, and consumer preferences to ensure your business model is viable.

Develop a Business Plan A clear business plan not only aids in securing funding but also provides a strategic roadmap for future operations.

Consult Professionals It is advisable to engage local lawyers, accountants, or business registration agents to ensure the registration process is compliant and efficient.

Understand Visa and Immigration Policies For non-U.S. residents, familiarize yourself with relevant visa options, such as the E-2 Investor Visa or L-1 Intracompany Transfer Visa, to plan your residency and work arrangements accordingly.

Conclusion

Registering a company in Michigan, USA, not only opens the door to a vast market but also connects you with a dynamic and innovative business ecosystem. With continuously improving policy support and an increasingly favorable entrepreneurial environment, Michigan is emerging as a new hotspot for global entrepreneurs. Whether you're a startup or an established company, Michigan may offer the perfect stage for your next big success.