Starting and running a nonprofit in Michigan

Forming your nonprofit corporation

The state creates your organization; the IRS separately recognizes it as tax-exempt. This is the state part.

Where you file

Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division, online through the MiBusiness Registry Portal

Official source · checked October 21, 2026

Form

Form 502 (CSCL/CD 502), Articles of Incorporation for Domestic Nonprofit Corporations

Official source · checked October 21, 2026

Filing fee

$20.00 ($10.00 filing fee plus $10.00 franchise fee)

Official source · checked October 21, 2026

Annual report

Yes, every year by October 1, filed online. You don't file one in the year you incorporate if you formed between January 1 and October 1.

Official source · checked October 21, 2026

Annual report fee

$20.00. The law lowers it to $10.00 for reports paid after September 30, 2027.

Official source · checked October 21, 2026

Then get your EIN and apply to the IRS for 501(c)(3) status: the formation stage walks through both.

Registering to ask for donations

Many states want charities to register before they ask residents for money. Here's what this state says.

Do you have to register?

Yes, unless you're exempt: organizations that solicit or receive contributions in Michigan register with the Attorney General's Charitable Trust Section on Form CTS-01 before soliciting.

Official source · checked October 21, 2026

Exempt

Organizations that raise money only through volunteers and receive less than $25,000 a year, certain schools and hospitals, and unpaid solicitations for named individuals, among others (MCL 400.283). Confirm an exemption with the Charitable Trust Section on Form CTS-03.

Official source · checked October 21, 2026

Fee

None. There is currently no fee to register to solicit in Michigan.

Official source · checked October 21, 2026

Renewal

Every year on Form CTS-02. Your registration expires seven months after your fiscal year ends; file the renewal at least 30 days before it expires. It stays valid while the renewal is pending.

Official source · checked October 21, 2026

State tax exemption

IRS approval doesn't automatically exempt you from state taxes. Here's how this state handles them.

Corporate income tax

Entities exempt from federal income tax are among those exempt from Michigan's corporate income tax.

Official source · checked October 21, 2026

Sales tax

No state application. When you buy, give the seller proof of your IRS 501(c)(3) or 501(c)(4) exemption and a certificate of exemption (Form 3372) stating the items will be used for your organization's operations.

Official source · checked October 21, 2026

We couldn't confirm whether a nonprofit has to apply or file anything to show it's exempt from Michigan corporate income tax. Ask the Michigan Department of Treasury.

Your board

The smallest board the state's nonprofit law allows. Many charities choose more.

Minimum directors

Three or more (MCL 450.2505(1)(b)). A private foundation may have one or more.

Official source · checked October 21, 2026

Every year

• Michigan Attorney General: charitable solicitation registration renewal (CTS-02)

  Charities that ask for or receive donations in Michigan register with the Attorney General's Charitable Trust Section, unless exempt. For example, groups that raise money only through volunteers and receive less than $25,000 a year are exempt. Registration must be renewed every year. It expires seven months after your fiscal year ends, and the CTS-02 renewal form is due 30 days before that expiration date. You can ask for a 5-month extension, which then applies to future renewals too. There is currently no fee. Confirm with the Michigan Attorney General's Charitable Trust Section.

  Official source · checked October 17, 2026

• Michigan LARA Corporations Division: nonprofit annual report

  Michigan nonprofit corporations file an annual report with the Corporations Division of the Department of Licensing and Regulatory Affairs (LARA) by October 1 each year, starting the year after they form. The fee is $20. Online filing opens June 15. If you don't file, the corporation can be dissolved after a two-year grace period. Confirm with LARA's Corporations Division.

  Official source · checked October 17, 2026

Federal deadlines (the Form 990 family) depend on your fiscal year and size. The compliance calendar puts them and Michigan's in date order.

Make my Michigan calendar

Who to ask

We don't list a free legal help program for Michigan charities yet. The directory has the programs we know of.