We love working with new entrepreneurs in Michigan. Although our state was always considered to be the center of the automotive industry in the U.S, its economy has seen a steady increase since the great depression. This is thanks to much-needed diversification and state incentives to boost entrepreneurship. The potential growth is one of the reasons Michigan is an attractive state to start a new business.
The state is focused on community development, sustainability, and innovation. In recent years the business climate has improved substantially with many incentive programs offered to entrepreneurs starting a business in the state.
A popular business structure for small businesses to choose from in Michigan is a Limited Liability Company (LLC). The LLC offers protection to its member’s personal assets which can not be seized due to company debts. Below are 5 more reasons why it is a good idea to start a Michigan LLC.
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Economic growth
Over the last few years, Michigan’s GDP has grown at around 2.1% per year. The state has experienced its largest economic recovery ever in recent years and continues to move upwards at a steady pace. In fact, it has taken the top spot for the state with the fastest economic recovery in the last 2 years.
The state is working with Ford, Google, and the city of Detroit to start the Michigan Central Innovation District. The district will focus on sustainability and will serve as a hub for talent, entrepreneurship, innovation, and small business opportunities to name a few.
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Small business focussed
The decrease in unemployment rates in Michigan is due in part to the rise in small businesses. It has been ranked #1 for fastest foreign direct investment job growth over the last 5 years. The improved regulatory climate and tax rates have spurred small businesses into hiring more and creating job opportunities.
Once a business is registered in Michigan, it can qualify for a variety of incentive programs offered by the state that include tax credits, loans, and many more. LLCs may qualify for the “Industrial and Hi-Tech Tax Abatement” program which enables them to renovate old facilities or build new ones.
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Strong and reliable industry
Manufacturing is one of the strongest industries in Michigan. According to the Bureau of Economic Analysis, almost 18% of Michigan’s economy is due to manufacturing industries. There are just under 15 000 manufacturing companies that employ almost 740 000 employees in the state. Big corporate giants like Ford Motors, Amway, and General Motors call Michigan home.
Other industries that perform well in the state are tourism, agriculture, health care, and information technology. The state is well-known for its diverse farming which contributes around $105 billion annually to the state’s economy.
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Affordable cost of living
When it comes to living costs, Michigan is rated as one of the top 5 most affordable states in the country. Real estate is fairly affordable and so is the cost of corporate rent. The low cost of housing attracts talented individuals from across the country to make the state their new home.
The cost of housing is 23% lower than the national average and the cost of living is 10% lower than the national average. Other necessities such as food and clothing will come at a 4% lower cost than the national average, making Michigan extremely affordable.
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Diverse and abundant workforce
Manufacturing industries like chemical and engineering contribute to the high number of talented individuals living and working in the state. Many employers have found that not only does the state offer some top talent in a variety of industries, but the state department has also put programs and resources in place in order to meet the industry’s needs.
Final Thoughts
Michigan has had its ups and downs, but through it all has maintained a steady economic growth. Although the manufacturing industry is still the biggest economic contributor, other industries are also seeing an increase in business. State incentives for start-ups are a big draw for entrepreneurs wanting to start their own businesses.
The state has one of the most diverse and abundant workforces in the country and the hiring costs of talent are significantly less than most other states. It is an attractive location for the low cost of living and affordable housing, which means many more residents are able to purchase or rent a property.
Suggested Video on Michigan LLC Formation:
