← Back to NewsBusiness & LLC

2026 LLC Regulations and Tax Updates

Updated for 2026 | January 2026

If you own an LLC in Michigan, there are important new requirements and tax changes you need to know about for 2026. These updates affect filing requirements, compliance obligations, and your tax strategy.

Corporate Transparency Act Requirements

The Corporate Transparency Act (CTA) now requires most LLCs to file Beneficial Ownership Information (BOI) reports with FinCEN. Key requirements include:

  • Existing LLCs formed before 2024 had until January 1, 2025 to file
  • New LLCs must file within 90 days of formation
  • Updates must be filed within 30 days of any ownership changes

Michigan LLC Annual Filing Requirements

Michigan LLCs must file an Annual Statement with the Department of Licensing and Regulatory Affairs (LARA). The filing fee is $25 and is due by February 15 each year. Starting in 2026, Michigan also requires LLCs to maintain a registered agent with a physical Michigan address.

Tax Implications for LLC Owners

LLC tax treatment depends on how your business is classified:

  • Single-member LLCs are taxed as sole proprietorships (Schedule C)
  • Multi-member LLCs are taxed as partnerships (Form 1065)
  • S-Corp election can reduce self-employment taxes for qualifying LLCs

Action Steps for LLC Owners

Review your BOI filing status and ensure compliance with the Corporate Transparency Act. File your Michigan Annual Statement by February 15. Consider consulting with our team about the best tax treatment for your LLC structure and whether an S-Corp election could benefit your situation.

Need Help with Your Taxes?

Our team can help you stay compliant with new LLC requirements and optimize your business tax strategy.

Schedule a Consultation →

Frequently Asked Questions

What is the Beneficial Ownership Information (BOI) report?

A BOI report identifies the individuals who ultimately own or control a company. It includes personal information like name, date of birth, address, and a government ID number for each beneficial owner.

Is my LLC exempt from BOI reporting?

Some companies are exempt, including those with more than 20 full-time employees, over $5 million in annual revenue, and a physical office in the US. Most small LLCs are NOT exempt and must file.

What happens if I don't file the BOI report?

Failure to file can result in civil penalties of up to $500 per day and criminal penalties including fines up to $10,000 and imprisonment for up to 2 years.

Should I elect S-Corp status for my LLC?

S-Corp election can save self-employment taxes if your LLC generates significant profits. Generally, if your net income exceeds $40,000-$50,000, S-Corp status may be beneficial. However, it adds complexity and requires reasonable salary payments.

When is the Michigan Annual Statement due?

The Michigan Annual Statement is due by February 15 each year. The filing fee is $25 and must be filed online through the Michigan LARA website.