Starting a nonprofit in Michigan

Incorporation

Filing

Form CSCL/CD-502 — Articles of Incorporation, Domestic Nonprofit Corporation

Agency

Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division

State fee

$20 — never marked up by us

Processing

About 10 business days routine (online via the MiBusiness Registry Portal); paid expedite brings it to hours

Expedite

$50 (24-hour) / $100 (same-day) / $500 (2-hour) / $1,000 (1-hour)

Watch out

• Form CD-502 does NOT include the IRS-required 501(c)(3) purpose and dissolution clauses — they must be added in the article text or the IRS will reject your exemption application.
• The $20 fee is a $10 filing fee plus a $10 franchise fee.
• You must elect whether the corporation is organized on a membership or directorship basis — it changes who votes on major decisions.

Ongoing compliance

Registered agent

Called the 'resident agent'; must have a Michigan street address; the corporation cannot serve as its own agent.

Charitable registration

Required — Michigan Attorney General, Charitable Trust Section. Initial: $0 (no fee). Renewal: Renew before the license expires — registrations run up to 7 months past fiscal year end. Free but mandatory before soliciting. Organizations raising under $25,000 with no paid fundraisers can request an exemption — but must still ask for it.

Annual report

Annually by October 1 (Form CSCL/CD-2000) — $20

State tax exemption

Michigan sales/use tax exemption is automatic for 501(c)(3)s — no application; claim it at purchase with Form 3372 plus the IRS determination letter. Income tax exemption follows the IRS determination.