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Michigan Business License

Starting a business requires lots of efforts, time and work. However, it may be rewarding, bringing success and progress.

If you want to start your own business, it may, at first, seem very complicated. You will need to use a Michigan business license lookup to understand the process. That is why we have designed this guide to provide some helpful tips and explain the process.

How do I get a business license in Michigan?

Once you have decided on the type of business you want to have and there are many business ideas, it is time to get a business license. To get a business license in the state of Michigan, you should complete the following steps.

Choose a business entity

Business entity is the way a business is legally organized. There exist four types of business entities:

  • Sole Proprietorship
  • Partnership
  • Corporation
  • Limited Liability Company (LLC)

Register the business name

Many businesses do not operate under the name of their owners (first and last name). Accordingly, they operate under a business name, which is known as an “assumed” name.

In Michigan, you should register the assumed business name with the County Clerk, where your business is going to be located.

Make sure your business name is different. It should not resemble or be similar to other names.

Another key point is to register a trademark. A trademark distinguishes and identifies services and products. Therefore, it can prohibit other companies from using your business name or logo.

Do not forget to register your business with the Michigan Department of Treasury.

Get a FEIN

Federal Employer Identification Number (FEIN) is a nine-digit tax ID number. It is given to you for your business. Thus, the number identifies the business in the US.

As you may guess, FEIN is used for paying taxes, filing tax returns and so on. FEIN is used to open a checking account and to make financial transactions easier.

Submit application for business license and necessary permits

As can be seen, there is no general business license in the state of Michigan. Nevertheless, there are some cities, which still require obtaining a business license.

In the same way, you should also obtain a Sales Tax License to sell products and certain services. It will your business legal. The Michigan Department of Treasury issues the given license.

In the long run, you may also need a Professional licensing to operate some services (bakery, photography, etc.).

Business bank account

It is always preferable to open a separate business account to make financial transactions. Mixing your business and personal money is definitely not a good idea. Moreover, it will further complicate the things.

Get business insurance

Despite the fact, that many people do not consider getting a business insurance, it is a necessary step to protect your business.

Is a business license required in Michigan?

As the article mentioned above, the state of Michigan does not have a general business license. However, there are some types of businesses, which require a business license.

Do I need a business license to sell online in Michigan?

You should get a Sales Tax license, as there are some products that are taxed, while others are not. It is useful to get this license to operate legally.

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