Start a nonprofit · Michigan
How to Start a Nonprofit in Michigan
Michigan charges $20 to file nonprofit articles, a $10 filing fee plus a $10 franchise fee, and $20 for the annual report due each October 1. A charity that solicits or receives more than $25,000 a year, or pays anyone for fundraising, registers with the Attorney General. Michigan's sales tax rules favor 501(c)(3) organizations, which claim the exemption when they buy.
Every fee and rule on this page was checked against the agency's own publication on November 8, 2026. Sources are linked under each item.
At a glance
The Michigan requirements in one table.
| Type of entity | A Michigan nonprofit corporation, created by filing Articles of Incorporation (Form CSCL/CD 502) with the Corporation Division of LARA. Sources: Form CSCL/CD-502, LARA fee schedule |
|---|---|
| State filing fee | $20, made up of a $10 filing fee and a $10 franchise fee. Sources: LARA fee schedule, Form CSCL/CD-502 |
| Incorporators | One or more. Educational corporations need at least three. Sources: Form CSCL/CD-502 |
| Registered office | A Michigan street address, with no post office box, and the name of a resident agent. Sources: Form CSCL/CD-502 |
| Federal exemption | Form 1023 ($600) or Form 1023-EZ ($275), filed electronically on Pay.gov. Sources: IRS fee page, IRS e-filing notice |
| Annual report | $20, due October 1 each year after incorporation. Online filing opens June 15. Sources: LARA annual reports |
| Charity registration | Typically required for 501(c)(3) organizations that solicit or receive more than $25,000 a year, or that pay anyone for fundraising services. Sources: AG charitable trust |
| Sales tax | 501(c)(3) organizations are generally exempt at purchase. The nonprofit gives the seller Form 3372 or a written statement of the exemption. Sources: Treasury RAB 2020-25 |
The steps
Five steps, in the order they happen.
Decide how the corporation will be organized.
Michigan's articles ask whether the corporation is stock or nonstock. A nonprofit is ordinarily nonstock, and a nonstock corporation lists its real and personal property assets, or none, with values, and a financing plan. It also states whether it is organized on a membership basis or a directorship basis. On a directorship basis, the Board of Directors determines corporate action.
The purpose clause needs care. The form says it is not sufficient to state that the corporation may engage in any activity within the Act's purposes, so write the actual purposes.
Sources: Form CSCL/CD-502
File Form 502 and pay $20.
The articles name the corporation, state its purposes, state the property assets and financing plan, give the registered office street address (no post office box) and the resident agent's name, and list each incorporator's name and address. The Act requires one or more incorporators, and educational corporations need at least three. Each incorporator signs in ink. With three or more, they may designate one signer by a certified resolution attached to the articles.
The fee is $20, payable to the State of Michigan, with the corporation's name on the check or money order. Optional expedited service costs extra, from $50 for 24-hour formation review to $1,000 for one-hour review.
Sources: Form CSCL/CD-502, LARA fee schedule
Apply to the IRS for 501(c)(3) status.
Forming a Michigan corporation does not make it tax-exempt. The federal application is Form 1023, with a $600 user fee, or the shorter Form 1023-EZ, with a $275 user fee, for smaller organizations that pass the eligibility worksheet in the form instructions. Both are filed electronically on Pay.gov, and the IRS returns paper applications. The IRS notes that the amounts can change.
The IRS answers with a determination letter, the written ruling that recognizes the exemption. The LARA form itself gives no 501(c)(3) instructions.
Sources: IRS fee page, IRS e-filing notice, Form CSCL/CD-502
Check whether the Attorney General registration applies.
Registration with the Attorney General's Charitable Trust Section is typically required for 501(c)(3) organizations that solicit or receive more than $25,000 per year. An organization that pays anyone for fundraising services must register even below that amount. Churches, approved Michigan schools and federally chartered veterans' organizations are exempt. To check, complete the Request for Exemption Form on the Attorney General's Charitable Trusts page.
The page does not state the registration fee or the annual reporting requirements. Call the Charitable Trust Section at 517-335-7571, open 8 a.m. to 5 p.m. Eastern, Monday through Friday, before you assume either.
Sources: AG charitable trust
Claim the sales tax exemption when you buy.
Treasury's bulletin treats nonprofits exempt from federal income tax under IRC 501(c)(3) or 501(c)(4), and 501(c)(19) veterans' organizations, as generally exempt from sales tax. The bulletin does not describe an application or ruling process for these organizations. The nonprofit claims the exemption at the time of purchase, by giving the seller a completed Form 3372 or written or electronic information stating the reason for the exemption and identifying the purchaser. The conditions are in the section below.
Sources: Treasury RAB 2020-25
Sales tax conditions
The limits on Michigan's nonprofit sales tax exemption.
These come from Treasury's Revenue Administrative Bulletin 2020-25. Read the full bulletin or ask a tax professional before you rely on the exemption for a large purchase.
Mission use.
Property must be used for the purposes stated in the bylaws or articles. Mixed use is taxed in proportion to the nonexempt share.
Sources: Treasury RAB 2020-25
Fundraising property.
Fundraising is not a stated purpose. Property or vehicles used for fundraising are exempt only if a single item costs $5,000 or less for 501(c)(3) and 501(c)(4) organizations. Above that limit, the full price is taxable.
Sources: Treasury RAB 2020-25
Rooms and accommodations.
These must be paid with the entity's own funds. Reimbursing an employee who paid personally does not qualify.
Sources: Treasury RAB 2020-25
Nonprofit retail sales.
The first $10,000 of fundraising sales per calendar year is exempt if aggregate retail sales stay under $25,000. Reaching $25,000 makes all of that year's sales taxable. Nonprofits making retail sales generally need a sales tax license and must file returns, unless they hold two or fewer events a year and use Form 3421 or 5089.
Sources: Treasury RAB 2020-25
After you form
Staying in good standing.
Two things recur: the annual report and, for registered charities, the Attorney General filings.
File the annual report by October 1.
Michigan nonprofit corporations file an annual report each year, due October 1, with a $20 fee. Online filing opens June 15. All corporations and LLCs registered with the Corporation Division must file.
Sources: LARA annual reports
Keep the Attorney General registration current.
A registered charity should confirm its annual reporting requirements with the Charitable Trust Section, because the page reviewed does not list them.
Sources: AG charitable trust
Common questions
Quick answers.
How much does it cost to start a nonprofit in Michigan?
The government fees are $20 to LARA plus the IRS user fee, which is $275 for Form 1023-EZ or $600 for Form 1023. That totals $295 or $620 as of the date this page was verified. Expedited review and Attorney General registration, if it applies, cost extra.
When is the Michigan nonprofit annual report due?
October 1 each year after incorporation, with a $20 fee. Online filing opens June 15.
Do I need to register with the Michigan Attorney General?
Typically if the organization is a 501(c)(3) that solicits or receives more than $25,000 a year, or pays anyone for fundraising services. Churches, approved Michigan schools and federally chartered veterans' organizations are exempt.
Is a Michigan nonprofit exempt from sales tax?
501(c)(3) and 501(c)(4) organizations are generally exempt on purchases used for their stated purposes. The nonprofit claims the exemption at the time of purchase with Form 3372 or a written statement.
After the filing
What comes next for a Michigan nonprofit.
The state filing is the short part. These are the next four jobs, and the book that handles each.
- Book I
Get the federal application and first-year budget right
The name, bylaws, the IRS application, a founding board and a first-year budget that balances.
- Book X
Start from finished documents
Forty annotated documents, including bylaws, budgets, policies, job descriptions and board papers, as editable Word files.
- Book VII
Build the board on purpose
What a board is for, recruiting for the skills you lack, working with the chair and running meetings that reach decisions.
- Book VIII
Stay in good standing
Charitable solicitation registration, operating in a second state, insurance and annual filings.
The complete set
All ten books and forty documents, $149.
All ten books in PDF and EPUB, plus the forty documents from Book X as editable Word files. The books are not sold separately.
Free when you join the list
Every Document a New Nonprofit Needs
Articles, bylaws, minutes, the exemption application, the policies and the filings: the whole sequence a new organization has to produce, in the order it arrives.
Sources
Where each figure comes from.
- Michigan LARA, Domestic Nonprofit Corporations filing fees
- Michigan LARA, Articles of Incorporation for a Domestic Nonprofit Corporation (Form CSCL/CD 502)
- Michigan LARA, Annual Reports and Annual Statements
- Michigan Attorney General, Charitable Trust Section
- Michigan Department of Treasury, Revenue Administrative Bulletin 2020-25
- IRS, Form 1023 and 1023-EZ: amount of user fee
- IRS, Changes to the exempt organization determinations process
Last verified November 8, 2026. Fees and rules change, so confirm with the agency before you file. This page is general information and not legal or tax advice.