One of the most time-consuming aspects of starting a small business is thinking of a name for it because you don’t want to pick just any name. You want the name to be meaningful to the business and something that is easy to remember.
In Michigan, you cannot have the same name as any other registered business, so you need to think of a completely unique name before you can register. There’s a search tool that budding business owners can use to see if the name they like is available.
This article will explain how to use that search tool and provide you with useful facts and tips to get your LLC up and running in no time.
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How to check business name availability in Michigan
If you thought of a name for your small business, here is how to check for its availability:
1. Go to the Michigan Secretary of State Website
On the website, you will find a search tool that will show you all the registered businesses in the state of Michigan, you can use this tool to make sure if the name you have chosen is available.
2. Use the search tool and enter your desired business name
On the search tool, you can enter your business name of choice. You can type in exact names or keywords.
3. Run the search
If you entered the exact name and nothing appears on the results page, the name is available for you to use. Make sure there are no exact matches and the name is good to go.
4. Consider reserving a name
After running a Michigan business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Michigan allows business owners to reserve a name for a limited period of time for $30.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Michigan, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Michigan business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Michigan company?
As you research available business names in Michigan, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Michigan business
Ready to set up your business in MI? Here’s what you do:
1. File your Articles of Organization
Visit the Michigan Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Michigan, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Michigan, the cost is $50.
4. Wait for approval
Michigan will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Michigan small business facts
Before you start considering a name for your business or the industry you want to enter in the state of Michigan, you might want to take a look at these interesting and helpful small business statistics from the U.S. Business Administration:
- In the state of Michigan, there are a total of 856,352 small businesses that cover over 98% of all Michigan businesses in the private sector.
- Almost half of all the businesses in Michigan are minority-owned, meaning the ownership and employment in this state is very diverse.
- Michigan small businesses employed 1.8 million, which is just a little bit over half of the private workforce in 2013.
- The unemployment rate took a drop from 6.2% to 5.1% in 2015, which is still slightly above the national unemployment rate of 5% in that same period.
- The private sector employment increased 2.4% in 2015, which was slightly above the previous year’s increase of 2.1%.
- Small businesses in Michigan created 43,866 net jobs in 2013, and among the seven BDS size classes, firms employing 250 to 499 had the largest gains, sing over 11,000 net jobs. The firms with the largest losses were small firms that employing 1 to 4 employees.
- Out of all the minority-owned businesses, 84.7% of them are Hispanic-owned, 46.7% are African American-owned, and the rest are Asian, Pacific Islander, and Native American/Alaskan-owned.
- The retail trade industry has the most firms in the state of Michigan, followed closely by general services, and the health care and social assistance industry.
- In terms of employment, the health care and social assistance industry has the most number of employees, just like most states in the United States.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Michigan:
Why is it so important to check on business name availability?
Michigan will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Does Michigan require a small business license?
Unlike most states, not all Michigan businesses need a license. However, it is better for all types of businesses to get a license to operate to avoid any issues in the future. In many instances, the required license is issued by the state of Michigan through their website.
How much does a small business license cost in Michigan?
The fees range from as low as $7 to $3000 in Michigan, depending on the size of the business. But the typical fee when registering and filing for a small business license is around $150. And take note that in Michigan, you will need to renew your business license annually.
The filing fee is separate from the actual fee itself. And if you want to reserve the name, it is a separate expense from actually registering the business name that you selected. However, it will not be as expensive when you are filing for a sole proprietorship, general partnership, or LLC compared to a corporation.
What is considered a small business in Michigan?
Just like most states in the US, Michigan considers firms with fewer than 500 employees small businesses. And as stated before, 98.2% of all Michigan businesses are considered as small businesses in the U.S. Business Administration small business profile.
How do you dissolve a business in Michigan?
You can dissolve a business by filing a certificate of dissolution on the Michigan Secretary of State website. The certificate must state the name of the corporation and that the said corporation is dissolved pursuant to an agreement between all parties under section 488.
However, you also need to file a final return and all related forms, take care of your employees, pay the taxes you owe, report payments to the contract workers, cancel your EIN and close your IRS business account, and keep all your records.
It might sound like a lot of work, but the standard dissolution process takes only 3 to 5 business days. The process that actually takes a while is getting the clearance from the department of treasury, which can take between 6 to 12 weeks.
Is it possible to get a small business startup grant in Michigan?
Many private companies and lenders are willing to loan money for a startup in Michigan. However, you will need to present a bulletproof plan that discusses the long-term financial projections, a feasibility study that includes income and cash flow statements, and a balance sheet.
You need to complete a lot of prerequisites and identify all the funding needs before you can ever be granted a loan to start your small business. Alternatively, you can present your plan to your friends and family and get incorporated, which is a typical way to start a business in most states, including the state of Michigan.
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