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Topic guideUpdated 2026-02-27

Michigan Business Compliance — Licensing, Taxes & Regulations

Business licensing, tax obligations, annual filing requirements, and employment compliance for Michigan businesses.

Every business in Michigan must comply with federal, state, and local regulations. Failure to maintain proper licenses and permits can result in fines, penalties, or forced closure.

Business Licensing

Michigan has no statewide general business license; local business licenses required by many cities and townships; professional licenses from LARA Bureau of Professional Licensing §339.101.

Licensing is managed by Michigan LARA Bureau of Professional Licensing; local units of government.

Tax Obligations

Corporate income tax (6%), individual income tax (4.05% flat), Michigan Business Tax replaced by CIT, sales tax (6%), no franchise tax.

1
Register for state tax accounts with the Department of Revenue
2
Collect and remit sales tax if applicable
3
File and pay estimated income/franchise taxes quarterly
4
Withhold and remit employee payroll taxes
5
File annual tax returns by the deadline

Annual Filing Requirements

Michigan LLCs and corporations must file annual reports with the Department of Licensing and Regulatory Affairs (LARA). Annual statement fee is $25 for LLCs. §450.4207.

Employment Compliance

If you have employees in Michigan:

1
Register for state unemployment insurance
2
Obtain workers' compensation insurance (required for 1 or more employees)[DOL Workers' Comp]
3
Comply with wage and hour laws (state minimum wage: $10.56/hr)[DOL Wage Data]
4
Post required workplace notices
5
Maintain I-9 forms for all employees
6
File quarterly payroll tax returns
✓Create a compliance calendar marking all filing deadlines for your business entity type. Missing a filing deadline can result in penalties, loss of good standing, or even administrative dissolution.
Prepare for Your Consultation
Quick checklist (Small Business)
Gather these before your first consultation.
Business formation docs
(articles of org., EIN, operating agreement)
Contracts and agreements
(client contracts, vendor agreements, leases)
Licenses and permits
(business license, permits, tax registrations)
General preparation tips only. Specific needs depend on your state and business type.
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Common Questions

Frequently Asked Questions

General answers to common questions. Specific outcomes depend on your facts and timing.

If you have a deadline, court notice, or upcoming hearing, mention it when requesting assistance so timing can be evaluated promptly.

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