How to Start a Limousine Business in Michigan: LARA Registration Under Public Act 345

If you want to run a limousine service in Michigan, the state filing you need is not a general business license. Michigan has no general statewide business license. Your main state requirement is a carrier registration with the Michigan Department of Licensing and Regulatory Affairs (LARA) under the Limousine, Taxicab, and Transportation Network Company Act, 2016 PA 345 (MCL 257.2101 et seq.). LARA, not the Michigan Public Service Commission or MDOT, registers limousine carriers. This registration is a registration, not a license, but the paperwork is just as exacting. A missed renewal or an insurance gap may stop your fleet from operating legally.

This guide separates three tracks that people often mix up: forming your business entity with LARA's Corporations Division, registering your limousine carrier under PA 345, and clearing the local and tax items that apply in your city. Read all three before you buy a vehicle.

What you need before you start

Gather these items before you file anything. Missing one usually means a rejected or delayed application.

• A business name that is available. Search the MiBusiness Registry business search. An LLC name must include Limited Liability Company, L.L.C., or L.C.
• An entity formation filing. For an LLC, that is the Articles of Organization (Form CSCL/CD-700). For a corporation, it is the Articles of Incorporation for Profit Corporation (Form CSCL/CD-500).
• A resident agent and registered office. The resident agent must be a Michigan resident, a Michigan corporation, a foreign corporation with a Michigan certificate of authority, a Michigan LLC, or a foreign LLC authorized to transact business in Michigan. The registered office is a physical location. A P.O. box alone is not sufficient.
• Proof of insurance covering the vehicles you plan to operate. Confirm the required coverage with LARA and your insurance agent before you buy a policy.
• A county assumed name certificate if you operate as a sole proprietor or general partnership. These businesses file with the county clerk, not LARA.
• A vehicle schedule listing each vehicle's year, make, model, VIN, and seating capacity including the driver.
• A payment method for the LARA application fee, the annual registration fee, and any filing fees.

Step-by-step: from entity to registered carrier

1. Step 1: Confirm each vehicle fits the legal definition

   PA 345 defines a limousine as a passenger vehicle for hire that seats 8 or fewer people, including the driver. It excludes a commercial vehicle. In practice, that means a sedan, SUV, or stretch vehicle with at most seven passenger seats plus the driver. A van with nine or more seats does not qualify as a limousine under this definition, and a vehicle that meets the commercial classification will not fit the category either. Check the classification with LARA before you buy, because the fee tier and the registration both depend on your fleet count.

2. Step 2: Form your business entity

   Most limousine owners form an LLC, because it keeps personal liability separate from business operations and is taxed as a pass-through entity by default. The LLC filing fee is $50 for Articles of Organization. You can check availability first on the business search and hold a name for six months with Form CSCL/CD-540, which carries a $25 fee. A corporation files Articles of Incorporation for Profit Corporation for a $60 filing fee.

   If you run the business alone without forming an entity, you file an assumed name certificate with the county clerk where you operate. The county fee for a sole proprietor is set by statute and by each county clerk, so confirm the amount with your county before you file.

   Expedited review is optional and sits on top of the filing fee:

   Expedited option	Extra fee
   24 hour review of a formation document	$50
   Same day review of a formation document	$100
   Two hour review (must be received by 3 p.m.)	$500
   One hour review (must be received by 4 p.m.)	$1,000

   LARA does not publish a guaranteed standard review time for routine filings, so plan around the expedited tiers only if you need the entity before a vehicle purchase or a launch date. Filings go through the MiBusiness Registry Portal (MiBRP).

3. Step 3: Appoint a resident agent

   Michigan calls this a resident agent, and it must appear in your Articles of Organization. Your registered office may match your garage or dispatch address, but it does not have to. Changes later are filed on Form CSCL/CD-520. Choose an agent who will reliably receive official mail, because a missed service notice can cause problems that are costly to unwind.

4. Step 4: Put your entity in good standing

   PA 345 requires an LLC or corporation to be in good standing before it can register. Confirm your status on the business search after formation. If you are a sole proprietor or general partnership, the county assumed name or co-partnership certificate fills the same role and must appear on your application.

5. Step 5: Secure insurance that matches your fleet

   The carrier application requires proof of insurance. Ask your broker for a policy that names every vehicle, every driver category you will use, and the operating territory you plan to cover. Do not assume a personal auto policy is enough for paid passenger transport. Confirm the minimum coverage you must carry with LARA before you sign, and keep the certificate ready to upload with your application.

6. Step 6: File the LARA carrier application

   Locate the limousine carrier application on the LARA website at michigan.gov/lara, and confirm the current form number and filing method there, because this guide does not list a form number for the carrier application. Include your entity documents, your resident agent details, your insurance certificate, and your vehicle schedule. Pay the application fee, which depends on fleet size: $25 for 10 or fewer vehicles, $50 for 11 to 25 vehicles, and $100 for more than 25 vehicles.

7. Step 7: Budget the annual registration fee

   The annual registration fee is the recurring cost that most new owners underestimate. Under MCL 257.2104, the schedule runs as follows:

   Fleet size	Annual registration fee
   First vehicle	$100
   Vehicles 2 through 9	$50 each
   10 vehicles	$550
   11 to 25 vehicles	$1,000
   26 to 100 vehicles	$2,500
   Above 1,000 vehicles	$30,000

   The schedule also covers fleets between 101 and 1,000 vehicles, which this table omits. For a fleet of one to nine vehicles, the total is $100 for the first vehicle plus $50 for each vehicle after it. Confirm the full schedule and whether the bands are totals or per-vehicle amounts with LARA before you set a budget.

8. Step 8: Calendar the renewal and the LLC annual statement

   The carrier registration expires every August 31, so set your renewal reminder well before that date and reconcile your fleet count at the same time. Separately, an LLC files an Annual Statement (Form CSCL/CD-2700) with LARA for $25, due February 15 each year beginning the year after formation. An LLC formed or qualified after September 30 does not owe a statement on the February 15 immediately following. A corporation files an Annual Report (Form CSCL/CD-2500) for $25, due May 15.

9. Step 9: Check local rules with the city clerk

   PA 345 sets the state framework, but cities may add their own rules. Michigan has 83 counties, roughly 275 to 280 cities, about 255 to 258 villages, and 1,240 townships, so local rules vary widely. Ask the city clerk where your garage or dispatch office will sit about local permits, zoning for vehicle storage, and any certificate of occupancy or inspection needed for your base. Only 24 Michigan cities levy a city income tax, so ask whether your city is one of them.

10. Step 10: Handle tax registration

    Michigan imposes no franchise tax on LLCs. A standard LLC is a pass-through entity, so members report business income on the Michigan individual income tax at the flat 4.25% rate for the 2026 tax year. An LLC that elects federal C corporation treatment is subject to the 6% Michigan Corporate Income Tax. The Department of Treasury also offers an elective Flow-Through Entity Tax. Sales tax registration is free, but whether your transport service is taxable is a question for the Department of Treasury. If you plan to serve alcohol on board, that is a separate matter for the Michigan Liquor Control Commission, so confirm it there before you start.

11. Step 11: Put driver compliance in writing

    A carrier or agent who requires or knowingly permits a driver to operate in violation of PA 345 commits a misdemeanor under MCL 257.2149. The penalty is up to $1,000 per violation or up to 90 days. Build a written driver qualification process, keep records, and confirm the driver requirements with LARA before you hire.

Common mistakes to avoid

• Counting seats wrong. The definition counts the driver. A vehicle that seats eight passengers and a driver does not qualify.
• Assuming an LLC is the registration. Forming the entity with LARA does not register your carrier. You need both.
• Using a P.O. box as the registered office. A physical location is required.
• Dropping the LLC designation from the name. The name must include Limited Liability Company, L.L.C., or L.C.
• Missing the August 31 expiration. Renewal lapses can interrupt operations.
• Underbudgeting the annual fee. Fleet growth moves you into a higher tier, so project the fee for the fleet you plan to have, not the one you have today.
• Letting untested drivers take the wheel. The misdemeanor exposure falls on the carrier and on any agent who permits it.
• Treating state approval as the final word. City zoning and local rules still apply.

Expected results

A complete, accurate filing is the most reliable way to avoid delays. Applicants who check the fleet definition, name rules, and insurance requirements before filing may find that the process moves more smoothly, though LARA does not publish a guaranteed review time for routine filings. Your results beyond compliance depend on your market, pricing, driver quality, and how consistently you keep the renewal calendar. This article does not promise revenue, approval timing, or any particular outcome.

Disclaimer

This article is informational, not legal or tax advice. Limousine rules, fees, and local requirements change. Confirm current figures with LARA, the Michigan Department of Treasury, your city clerk, and the Michigan Liquor Control Commission if alcohol is involved. Before you commit to an entity structure, a fleet plan, or a tax election, talk with a Michigan attorney and a certified public accountant. For planning help, the Michigan Small Business Development Center offers free advising to new owners.