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Michigan · How-To Guide

How do I get a business license?

Michigan Department of Licensing and Regulatory Affairs - LARA (entity formation + professional licenses) / Michigan Department of Treasury (tax registration) / Local jurisdiction for local permits
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the Michigan Department of Licensing and Regulatory Affairs (LARA) (for LLCs and corporations) - file online at michigan.gov/lara/bureau/corp (Corporations, Securities & Commercial Licensing Bureau) or through the Michigan Business One Stop portal at michigan.gov/business-one-stop
  3. Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
  4. Register with the Michigan Department of Treasury for applicable state taxes - online at mto.treasury.michigan.gov (Michigan Treasury Online):
  5. - Sales Tax License (if selling taxable goods/services in Michigan)
  6. - Withholding Tax registration (if you have employees)
  7. - Other applicable Michigan taxes
  8. Check with your city, township, or village for LOCAL BUSINESS LICENSES or PERMITS - Michigan municipalities each independently decide what local licensing to require; many require a local business license or zoning approval; contact your city/township clerk or building department
  9. Check for industry-specific state licenses: contractors, electricians, plumbers, health professionals, real estate, cosmetologists, engineers, and others require licenses through LARA - michigan.gov/lara/bureau/licensing
  10. Renew entity annual report with LARA; renew local licenses and state professional licenses per applicable schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • Michigan business address
  • Entity formation documents if LLC or corporation
  • EIN or Social Security number
  • Industry-specific certifications if applicable
Fee
LLC formation: $50 online (one of the lower fees nationally); corporation: $60 online; annual report: $25 (LLC), $25 (corporation) - very affordable; Sales Tax License: free; local business license: varies RENEWAL: Entity annual reports due by February 15 each year; local license: annual per municipality; professional licenses: biennial typically ONLINE OPTION: Yes - michigan.gov/lara/bureau/corp (entity formation); michigan.gov/business-one-stop (integrated portal); mto.treasury.michigan.gov (tax registration) WHERE TO GO: LARA (entity formation and professional licenses); Michigan Treasury (tax registration); City/Township Clerk or Building Department (local permits/license)
Online Option
Yes - michigan.gov/lara/bureau/corp (entity formation); michigan.gov/business-one-stop (integrated portal); mto.treasury.michigan.gov (tax registration)
Where to Go
LARA (entity formation and professional licenses); Michigan Treasury (tax registration); City/Township Clerk or Building Department (local permits/license)
County-specific variations apply

Michigan cities, townships, and villages each independently administer local business licensing. Detroit, Grand Rapids, Lansing, Ann Arbor, Flint, and other cities have their own licensing requirements. Township requirements vary - some require local licenses; others do not. For construction and trades: local building permits required through city/township building departments in addition to state licensing.

Michigan Notes

Important state-specific details

  • Michigan LLC formation: $50 - among the more affordable states nationally.
  • Annual report: $25 for most entities - very low fee; due February 15 each year.
  • Michigan Business One Stop (michigan.gov/business-one-stop): integrated portal for business registration, licensing, and tax registration.
  • Michigan Sales Tax: 6% state rate; no local sales taxes; food for home consumption largely exempt; prescription drugs exempt.
  • LARA licenses contractors, electricians, plumbers, mechanical contractors, architects, engineers, real estate, cosmetologists, health professionals, and many others - michigan.gov/lara.
  • Michigan has a flat state income tax (4.25% for individuals; Michigan Business Tax/Corporate Income Tax for businesses).
  • DBA (Assumed Name): file with County Clerk in the county where you do business if operating under a different name as a sole proprietor; LLCs and corporations register assumed names with LARA.
Official Source

State office contact

State Office
Michigan LARA, Corporations Bureau - michigan.gov/lara/bureau/corp | (517) 241-6470; Michigan Treasury (sales tax) - michigan.gov/taxes | (517) 636-4660; Michigan Business One Stop: michigan.gov/business-one-stop