How to Start a Real Estate Brokerage in Michigan: Salesperson and Broker Licenses

Starting a real estate brokerage in Michigan involves two steps that people often confuse. The first is a personal real estate license. The second is a broker license, which lets you run a firm. The firm also has to exist as a business entity registered with the state. The Bureau of Professional Licensing at LARA issues Michigan real estate licenses, while the company itself is formed and filed with LARA's Corporations Division. This guide covers the order most new owners follow, the published fees, and the items you need to confirm before you commit money. It is informational content, not legal or tax advice. Before you sign a lease, form an entity, or bring on agents, talk with a Michigan real estate attorney and a CPA.

How Michigan real estate licensing works

Real estate licensing in Michigan falls under Article 25 of the Occupational Code, administered by LARA's Bureau of Professional Licensing. Three rules shape every plan:

• A salesperson works under a licensed broker. A salesperson cannot run a brokerage.
• The broker license and the brokerage company license each have their own education, experience and fee rules. They are not the same as the salesperson rules, so check LARA's broker licensing guide before you plan a firm.
• The brokerage is also a business entity. It is an LLC or corporation registered with LARA, plus an assumed name filing if you operate under a trade name.

Michigan has no general statewide business license. LARA's Corporations Division receives and files the documents that form a business, and it does not license businesses. Registering an entity on the MiBusiness Registry is a filing, not a license. Your real estate licensing is a separate track from the entity filing, so keep the two in separate checklists.

Materials and information to gather first

• Your legal name, Michigan address and government-issued ID for your MiPLUS account
• Proof that you are at least 18 years old, and a willingness to sign the good moral character attestation
• Certificates for the 40 hours of approved prelicensure education, including the 4 hour civil rights and equal opportunity in housing course
• Your PSI exam booking details, plus the current exam fee, which you should confirm on LARA's salesperson guide
• The name and license details of the sponsoring broker or brokerage company you will work under
• Two or three business name options, each checked on the MiBusiness Registry business search
• A physical registered office address and a Michigan resident agent. Michigan uses the term resident agent, and a P.O. box alone is not enough.
• A budget that covers the filing and renewal costs in the table below

Real estate license requirements Michigan: fees at a glance

The figures below are the ones this guide relies on. Where a row says to check with LARA, the amount is not stated here and you should confirm it on the agency page before you budget.

Item	Agency	Fee or timing
Salesperson license, new application (3-year)	LARA, through MiPLUS	$88
Salesperson renewal (every 3 years, 18 hours of continuing education)	LARA	$78
Broker license	LARA	Check with LARA
Brokerage company license	LARA	Check with LARA
LLC Articles of Organization (CSCL/CD-700)	LARA Corporations Division	$50
Corporation Articles of Incorporation (CSCL/CD-500)	LARA Corporations Division	$60 minimum ($10 filing plus $50 for up to 60,000 authorized shares)
Name reservation (CSCL/CD-540), held six months	LARA Corporations Division	$25
Assumed name certificate, LLC (CSCL/CD-541)	LARA Corporations Division	$25
Assumed name certificate, corporation or limited partnership	LARA Corporations Division	$10
LLC Annual Statement (CSCL/CD-2700), due February 15	LARA Corporations Division	$25, or $75 for a professional LLC
Corporation Annual Report (CSCL/CD-2500), due May 15	LARA Corporations Division	$25

Step-by-step: from salesperson to brokerage

Step 1: Meet the salesperson requirements

To get a salesperson license, you must be at least 18 years old and complete 40 hours of approved prelicensure education. That course must include 4 hours on civil rights and equal opportunity in housing. You must also pass the PSI exam (you receive your exam candidate ID after you submit your MiPLUS application) and answer the good moral character question. Keep your course certificates and exam results together, because LARA's application asks for the details.

Step 2: Attach a sponsoring broker and apply through MiPLUS

A salesperson license does not issue until a sponsoring licensed broker or brokerage company is attached to your application. Ask the broker to confirm they will sponsor you before you pay for the application. File through MiPLUS. The new application for a 3-year salesperson license is $88. LARA's guide describes the process, but LARA does not state a review timeline, so confirm the current processing time with LARA before you set a start date.

Step 3: Work under a broker and build the experience you will need

Your salesperson license lets you list and sell property under a broker, but it does not let you hire agents, sign for the firm, or operate your own office. Use this stage to learn the transaction side, the disclosure forms your sponsoring broker uses, and how the office runs. Treat it as preparation for the broker license, which has its own education and experience rules.

Step 4: Plan the broker license using LARA's guide

Do not assume the broker path matches the salesperson path. Under MCL 339.2504 and 339.2505, a broker applicant (or the principal designated by a company applicant) must complete 90 more clock hours of approved prelicensure education, at least 9 of them on civil rights and fair housing, and show the equivalent of 3 years of full-time real estate experience. Pull LARA's broker licensing guide and confirm the application steps and the fee. Write those numbers into your plan from the source document, not from memory or a forum post. If the guide is unclear on any point, ask LARA directly before you spend money on coursework.

Step 5: Choose the business name and entity type

Decide between an LLC and a corporation, then check the name on the MiBusiness Registry. A domestic LLC name must include Limited Liability Company, L.L.C., L.C. or LLC, with or without periods. You can hold a name for six months with Form CSCL/CD-540 for $25. Keep in mind that a name you reserve is not the same as a license, and it does not replace the brokerage license.

Step 6: File the Articles with LARA

For an LLC, file Articles of Organization (Form CSCL/CD-700) for $50 through the MiBusiness Registry portal. For a corporation, file Articles of Incorporation for a Profit Corporation (Form CSCL/CD-500) for a $60 minimum ($10 plus $50 for up to 60,000 authorized shares, more for larger share counts). Both forms require a resident agent and registered office. If you need faster review, LARA's Expedited Service Request (Form CSCL/CD-272) adds a fee on top of the filing fee. Options include 24 hour review for $50, same day review for $100, two hour review for $500 if received by 3 p.m., and one hour review for $1,000 if received by 4 p.m. Expedited review speeds up LARA's review of your filing. It does not speed up the broker or brokerage license.

Step 7: Apply for the brokerage company license

The brokerage company license is separate from the entity filing. Check with LARA whether the entity must already exist before you apply, which education and experience the company requires, and what fee applies. Do not budget this step from the figures in this guide. Confirm all of it on the agency page or with LARA directly.

Step 8: File an assumed name if you use a trade name

If your brokerage will operate under a name other than its legal name, file a Certificate of Assumed Name (Form CSCL/CD-541). An LLC pays $25, and a corporation or limited partnership pays $10. The certificate is effective through December 31 of the fifth full calendar year after the year it was filed. A sole proprietor or general partnership files with the county clerk in each county where it does business instead, and Michigan has 83 counties, so the clerk's office matters. Check each county's assumed name fee directly, because county fees are set by statute and by each clerk.

Step 9: Check local and tax requirements

Michigan has no general statewide business license, but your office may still need local approvals. Confirm zoning for the office address, a certificate of occupancy if the city requires one, and any health approvals that apply. City income tax exists in only 24 Michigan cities, so check whether your office city is one of them. On the state side, Michigan has no franchise tax. An LLC is usually a pass-through entity, and its members report income on the Michigan individual income tax at the flat 4.25% rate for the 2026 tax year. An LLC that elects C corporation treatment is subject to the 6% Michigan Corporate Income Tax. Michigan also offers an elective Flow-Through Entity Tax. A tax professional should decide which structure fits your situation.

Step 10: Calendar your recurring deadlines

An LLC files an Annual Statement (Form CSCL/CD-2700) for $25 each year, due February 15, beginning the year after formation. An LLC formed after September 30 does not owe a statement on the February 15 that immediately follows. A corporation files an Annual Report (Form CSCL/CD-2500) for $25, due May 15. Your salesperson renewal costs $78 every 3 years and requires 18 hours of continuing education. Put every date in a calendar with a reminder 30 days out.

Tips and common mistakes to avoid

• Treating the entity as the license. Forming an LLC does not make you a licensed broker. Keep the entity filing and the license application on separate checklists.
• Practicing as a broker too early. A salesperson cannot run a brokerage, so do not advertise, hire, or sign for a firm until your broker license issues.
• Using the wrong name format. An LLC name must include one of the approved endings, and a name you reserve does not protect a trade name you have not filed.
• Listing a P.O. box as the registered office. Michigan requires a physical location for the resident agent, so use a real street address.
• Missing the February 15 statement. Professional LLCs pay $75 for the Annual Statement and incur a $50 late fee after February 15. Set the reminder early.
• Assuming expedited service covers the whole process. Expedited review applies to LARA's filing review. It does not shorten coursework, exam scheduling, or the broker and brokerage license steps.
• Skipping the sponsor check. Confirm that your sponsoring broker or brokerage is licensed and willing to sponsor you before you pay for an application.

What to expect when you finish

Once your salesperson license is issued and attached to a sponsor, you should be able to work with clients under that broker's supervision. After the broker and brokerage steps are complete, you may be able to open your own firm, subject to the local approvals and tax choices covered above. Timelines vary, and LARA does not publish a guaranteed standard review time for routine filings, so build in extra time before you plan a launch date. A well-prepared application is more likely to avoid delays, but no one can promise a specific date or outcome.

Next steps

Start with the salesperson requirements and a sponsor conversation, then pull LARA's broker licensing guide and make a written plan for the broker and brokerage license. Visit the Michigan LARA site to find the Bureau of Professional Licensing pages and MiPLUS, and use the LARA Corporations Division page for entity forms. Confirm every figure marked for LARA before you spend money.

Disclaimer: This article is informational content, not legal or tax advice. Requirements, fees and deadlines change, so verify each one with the agency before you act. For complex situations, consult a qualified Michigan real estate attorney and a CPA.