Tax Filing Options for LLCs

Manual vs. online filing for Michigan LLC taxes explained clearly

Can I submit tax for LLC manually in michigan not online?

Yes, you can submit Michigan LLC business taxes manually (on paper) — but it depends on which type of tax you are filing. Here is the clear breakdown so you know what can be done on paper and what must be done online:

1. Michigan Annual Report (for LLCs)

Can you file manually? — YES

You can file your Michigan LLC Annual Report on paper using:

Form CSCL/CD-2700 — Annual Statement for LLC

You can download and mail it to LARA.

Mailing Address:
Corporations Division
P.O. Box 30054
Lansing, MI 48909

📌 BUT:
Michigan strongly prefers online filing through LARA’s website. Paper filing takes longer and may delay updates.

2. Federal IRS Taxes for LLC (Form 1040 Schedule C, 1065, 1120, etc.)

Can you file manually? — YES

You can file these federal forms by mail.
However, IRS recommends e-filing for faster processing.

3. Michigan Business Taxes (State Income Tax, Sales Tax, Withholding Tax)

Can you file manually? — MOSTLY NO

Michigan requires most business tax forms to be filed electronically on MTO (Michigan Treasury Online).

Mandatory online filing for:

❌ Sales Tax (Form 5080)
❌ Withholding Tax (Form 5081)
❌ Sales/Use/Withholding Annual Return (Form 5080/5081)
❌ Unemployment Insurance (UIA)
❌ Corporate Income Tax (CIT) for multi-member LLCs taxed as corporations

Michigan Treasury stopped accepting most paper tax returns for businesses.

4. Exceptions — Where Paper Filing is Still Allowed

You may file paper for:

Michigan Schedule K-1 forms (if part of federal return)
Composite returns (certain situations)
Amended returns (occasionally allowed)

You must check each form because rules differ.

⭐ 1. MICHIGAN LLC — Manual Filing Guide

✔ A. Michigan LLC Annual Report (LARA)

Form you need:

Form CSCL/CD-2700 — Annual Statement for LLC

Where to download:

Search: “Michigan LARA CSCL CD-2700 PDF”

Where to mail:

Michigan Department of Licensing and Regulatory Affairs
Corporations Division
P.O. Box 30054
Lansing, MI 48909

Step-by-step:

Download Form CD-2700
Fill in:
- LLC Name (exact match of Articles)
- ID Number (from LARA website)
- Registered office/agent
Sign the form
Include payment:
- $25 filing fee (check or money order)
Mail to Lansing address
Keep a copy for your records

✔ B. Federal Taxes (IRS) — Can File on Paper

Depending on how your LLC is taxed:

Single-Member LLC (default)

File with your personal 1040
Form: Schedule C
Where to mail: Based on your state—Michigan uses:

Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999

Multi-Member LLC (Partnership)

Form: 1065 + K-1
Mail to:
Kansas City, MO 64999

LLC taxed as S-Corp

Form: 1120-S
Mail to:
Kansas City, MO 64999

LLC taxed as C-Corp

Form: 1120
Mail to:
Kansas City, MO 64999

✔ IRS still accepts paper filing
✔ Processing is slower than e-file

❌ C. Michigan Business Taxes — Cannot File on Paper

These MUST be filed online with Michigan Treasury Online (MTO):

Sales Tax (Form 5080)
Withholding Tax (Form 5081)
Sales/Use/Withholding Annual Return
Corporate Income Tax (if LLC elects C-Corp taxation)
Unemployment Insurance (UIA)

Michigan stopped accepting paper for these business taxes.

⭐ 2. MICHIGAN CORPORATION (INC) — Manual Filing Guide

✔ A. Michigan Corporation Annual Report

Form you need:

Form CSCL/CD-2500 — Annual Report for Profit Corporations

Where to mail:

Michigan Department of Licensing and Regulatory Affairs
Corporations Division
P.O. Box 30054
Lansing, MI 48909

How to file manually:

Download Form CD-2500
Fill in:
- Corporate name
- Corporate ID
- Officers and Directors
Sign
Pay $25 fee
Mail to LARA

✔ B. Federal Taxes (IRS) — Manual Filing Allowed

Corporations file:

C-Corporation

Form: 1120
Mail to:
Internal Revenue Service
Kansas City, MO 64999

S-Corporation

Form: 1120-S
Mail to:
Internal Revenue Service
Kansas City, MO 64999

✔ Paper filing allowed
❗ IRS processing for corporations is slower than individuals

❌ C. Michigan Corporate Income Tax (CIT)

For Corporations, this tax must be filed online.

Forms (not allowed manually):

CIT Annual Return
Sales/Use Tax
Withholding
UIA Unemployment Insurance

Michigan requires online submission through:
👉 https://mto.treasury.michigan.gov

⭐ Comprehensive FAQ: LLC vs INC, S-Corporation & C-Corporation

🟦 SECTION 1 — GENERAL BUSINESS STRUCTURE FAQs

1. What is an LLC?

A Limited Liability Company (LLC) is a flexible business structure that protects the owner’s personal assets while allowing simple taxation. It is the most common structure for small businesses.

2. What is a Corporation (INC)?

An INC is a legally separate entity from its owners (shareholders). It offers strong liability protection, formal management, stock issuance, and is preferred for larger or growing companies.

3. What is the difference between LLC and INC?

LLC → Flexible, simple, easy tax reporting, fewer formalities
INC → More formal, uses corporate bylaws, board of directors, stock, and stricter reporting requirements

4. Which structure gives better liability protection?

Both LLCs and corporations provide strong liability protection when operated properly.

5. Which structure is easier to maintain?

An LLC is simpler. Corporations require meetings, minutes, bylaws, officer appointments, and annual reports.

🟩 SECTION 2 — TAXATION FAQs

6. How is an LLC taxed by default?

Single-member LLC → taxed as a sole proprietor (Schedule C)
Multi-member LLC → taxed as a partnership (Form 1065)

7. Can an LLC be taxed as an S-Corporation or C-Corporation?

Yes. An LLC can elect:

S-Corp taxation (Form 2553)
C-Corp taxation (Form 8832)

8. How is a C-Corporation taxed?

A C-Corp pays corporate tax on profits using Form 1120. Owners pay tax again when dividends are taken ("double taxation").

9. How is an S-Corporation taxed?

An S-Corp passes income to owners through a K-1, avoiding double taxation. Requires Form 1120-S.

10. Who qualifies for S-Corporation status?

To elect S-Corp:

Must be a U.S. entity
100 or fewer shareholders
Only one class of stock
All shareholders must be individuals or approved entities

🟥 SECTION 3 — ENTITY MANAGEMENT & LEGAL FAQs

11. Who owns an LLC?

Owners are called members.

12. Who owns a Corporation?

Owners are called shareholders.

13. Do LLCs have a board of directors?

No. LLCs can be:

Member-managed
Manager-managed

14. Do corporations need a board of directors?

Yes. Corporations require:

Board of directors
Corporate officers
Annual shareholder meetings
Meeting minutes

15. Do LLCs issue stock?

No. LLCs issue ownership percentages (membership units).

16. Do corporations issue stock?

Yes. Corporations issue shares of stock.

🟧 SECTION 4 — TAX RETURN FORMS

17. What tax forms does a single-member LLC file?

Schedule C (with personal 1040)

18. What tax forms does a multi-member LLC file?

Form 1065
K-1 for each member

19. What tax form does a C-Corporation file?

Form 1120

20. What tax form does an S-Corporation file?

Form 1120-S
K-1 for each shareholder

21. Does an LLC need an employer identification number (EIN)?

Yes, unless it is a single-member LLC with no employees and no excise tax.

22. Do corporations need an EIN?

Yes. Corporations must have an EIN.

🟨 SECTION 5 — ADVANTAGES & DISADVANTAGES

23. What are the advantages of an LLC?

Simple setup
Easy taxes
Flexible management
Strong liability protection

24. What are the disadvantages of an LLC?

Harder to raise investment
Self-employment tax applies unless using S-Corp election

25. What are the advantages of a Corporation (INC)?

Strongest liability protection
Best for large businesses and raising capital
Ability to issue stock
Well-defined legal framework

26. What are the disadvantages of a Corporation?

More paperwork
Must maintain corporate formalities
C-Corp faces double taxation (unless S-Corp)

🟪 SECTION 6 — MICHIGAN SPECIFIC FILING FAQs

27. What filings do I need for a Michigan LLC annually?

LARA Annual Report (Form CD-2700)
Due by February 15 each year
Fee: $25

28. What filings do I need for a Michigan Corporation (INC)?

Annual Report (Form CD-2500)
Fee: $25

29. Does Michigan allow paper tax filing for LLCs?

IRS returns → Paper OK
Michigan Corporate Income Tax → Online only (MTO)
Sales & Withholding → Online only

30. Can corporations file taxes manually in Michigan?

IRS corporate taxes → Paper allowed
Michigan corporate taxes → Must file online

🟫 SECTION 7 — WHEN TO CHOOSE EACH STRUCTURE

31. When should I choose an LLC?

Choose if you want:

Simple taxes
Simple management
Flexibility
Lower cost

32. When should I choose an INC?

Choose if you need:

Investors
Stock issuance
Big-company structure
Clear governance

33. When is S-Corporation best?

Best for small businesses earning enough profit to save on employment taxes while avoiding double taxation.

34. When is C-Corporation best?

Best for:

Technology startups
Companies issuing shares
Businesses seeking major investment
Companies planning to retain profits

🔷 SECTION 8 — DISSOLUTION & LATE FILINGS

35. What if I did not file taxes for many years?

IRS: File old returns on paper
Michigan: CIT must be filed online
Annual reports must be submitted to LARA
Penalties may apply, but filing is always accepted

36. Can the IRS reject late corporate returns?

No. They must accept them, even if late.

37. Can my LLC or INC be reinstated if dissolved?

Yes, by filing past-due annual reports and paying reinstatement fees.