Here's what you need in Michigan
Official state business portal: Michigan Business Roadmap. The Michigan Business Roadmap from LARA is the state's step by step checklist for starting a business, from filing your entity to taxes, licenses and annual reports.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseNo general state business license. Michigan does not issue one general license for every business. Use the State License Search to see if your type of business needs a state license, and check with your city or county for local permits. | State of Michigan | Not needed | Applyat michigan.govSource | Nov 7, 2026 |
| Form an LLCArticles of Organization (Form 700). File Articles of Organization with the LARA Corporations Division online or by mail. Faster service is available for an extra fee. | Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division | $50 filing fee | Applyat michigan.govSource | Nov 7, 2026 |
| Business name (DBA)Certificate of Assumed Name. Sole owners and partnerships using a business name file a certificate of assumed name with the county clerk in each county where they do business. LLCs and corporations file their assumed names with LARA instead. | County clerk (sole owners and partnerships) or LARA Corporations Division (LLCs and corporations) | Set by each county | Source | Nov 7, 2026 |
| Sales tax permitSales tax license. If you sell goods to the final customer in Michigan, register with the Department of Treasury for a sales tax license, online through Michigan Treasury Online or with Form 518. | Michigan Department of Treasury | Free | Applyat michigan.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Employer registration with the Unemployment Insurance Agency. If you have employees, register with the Unemployment Insurance Agency so you can report wages and pay unemployment tax. This also applies if you buy an existing business. | Michigan Unemployment Insurance Agency (UIA) | You pay tax on wages | Applyat michigan.govSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in Michigan pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual StatementEvery Michigan LLC files an Annual Statement by February 15 each year. An LLC formed after September 30 does not file on the very next February 15. | Michigan Department of Licensing and Regulatory Affairs, Corporations Division | $25 a year | Applyat michigan.govSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonCosmetology establishment license. A hair, nail or skin care salon needs a cosmetology establishment license, applied for online through MiPLUS. The license lasts 2 years. | LARA, Bureau of Professional Licensing (Board of Cosmetology) | $75 for a new 2 year license | Applyat michigan.govSource | Nov 7, 2026 |
| Child care in your homeFamily child care home license. You need a license to care for unrelated children in your home. A family home cares for 1 to 6 unrelated children; a group home with 7 to 12 children needs a group home license. | Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP), Child Care Licensing Bureau | $50 to apply, $25 to renew | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)On premises liquor license (Class C or Tavern). Bars and restaurants get their liquor license from the Michigan Liquor Control Commission. A new license also needs approval from the local government where the business is. | Michigan Liquor Control Commission (MLCC) | Fee not published.Ask the agency | Applyat michigan.govSource | Nov 7, 2026 |
| General contractorResidential builder or maintenance and alteration contractor license. Builders and contractors who build, repair or remodel homes for pay need a state residential builder or maintenance and alteration contractor license, which requires prelicensure training. | LARA, Bureau of Construction Codes | Fee not published.Ask the agency | Applyat aca-prod.accela.comSource | Nov 7, 2026 |
| Selling homemade food (cottage food)Cottage food operation. You can make some non hazardous foods in your home kitchen and sell them directly to customers in Michigan without a state license or routine inspection. Sales on consignment or at wholesale are not allowed, and local zoning rules still apply. | Michigan Department of Agriculture and Rural Development (MDARD) | Not needed | Source | Nov 7, 2026 |
What is different in Michigan
- At $50, the LLC filing fee is among the lowest: only 3 of 49 verified states charge less.
- Where to file a business name (DBA): Sole owners and partnerships using a business name file a certificate of assumed name with the county clerk in each county where they do business. LLCs and corporations file their assumed names with LARA instead.
- Homemade food sales are capped at $50,000 a year ($75,000 if items cost $250 or more each). Of the 16 states where we verified a cap, 10 allow more.
- Contractor licensing in Michigan: Builders and contractors who build, repair or remodel homes for pay need a state residential builder or maintenance and alteration contractor license, which requires prelicensure training.
- At $75, the salon or shop license fee is among the lowest: only 8 of 36 verified states charge less.
- Annual Statement: $25 a year. Every Michigan LLC files an Annual Statement by February 15 each year. An LLC formed after September 30 does not file on the very next February 15.
Steps to start a business in Michigan
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Articles of Organization (Form 700) with the Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division ($50).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the County clerk (sole owners and partnerships) or LARA Corporations Division (LLCs and corporations).
Register for sales tax
If you sell taxable goods or services, get your permit from the Michigan Department of Treasury before your first sale.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the Michigan Unemployment Insurance Agency (UIA).
City and county permits
Cities and countys in Michigan can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
In the biggest cities, ask these local governments:
- Detroit: the city, and Wayne County. City of Detroit (detroitmi.gov)
City rules and fees are not in our guide yet.
Questions about business licenses in Michigan
Do I need a business license in Michigan?
No. Michigan does not issue one general license for every business. Use the State License Search to see if your type of business needs a state license, and check with your city or county for local permits.
How much is a business license in Michigan?
There is no general state business license fee in Michigan. A local business license, if your city or county requires one, is priced by that city or county. State licenses for some types of business have their own fees, listed on this page.
How much is an LLC in Michigan?
The Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division charges $50 filing fee to file the Articles of Organization (Form 700). File Articles of Organization with the LARA Corporations Division online or by mail. Faster service is available for an extra fee.
How much does an LLC cost per year in Michigan?
Annual Statement: $25 a year. Every Michigan LLC files an Annual Statement by February 15 each year. An LLC formed after September 30 does not file on the very next February 15.
Does an LLC need a business license in Michigan?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in Michigan still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in Michigan?
Yes, if you sell taxable goods or services. If you sell goods to the final customer in Michigan, register with the Department of Treasury for a sales tax license, online through Michigan Treasury Online or with Form 518. Official fee: Free.
How much is a DBA in Michigan?
Sole owners and partnerships using a business name file a certificate of assumed name with the county clerk in each county where they do business. LLCs and corporations file their assumed names with LARA instead. Official fee: Set by each county.
Can I sell homemade food from home in Michigan?
You can make some non hazardous foods in your home kitchen and sell them directly to customers in Michigan without a state license or routine inspection. Sales on consignment or at wholesale are not allowed, and local zoning rules still apply. Sales cap: $50,000 a year ($75,000 if items cost $250 or more each).
Do contractors need a state license in Michigan?
Builders and contractors who build, repair or remodel homes for pay need a state residential builder or maintenance and alteration contractor license, which requires prelicensure training.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license State of Michigan Checked Nov 7, 2026
- Form an LLC Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division Checked Nov 7, 2026
- Business name (DBA) County clerk (sole owners and partnerships) or LARA Corporations Division (LLCs and corporations) Checked Nov 7, 2026
- Sales tax permit Michigan Department of Treasury Checked Nov 7, 2026
- Unemployment insurance (once you hire) Michigan Unemployment Insurance Agency (UIA) Checked Nov 7, 2026
- Hair salon, barber shop or nail salon LARA, Bureau of Professional Licensing (Board of Cosmetology) Checked Nov 7, 2026
- Child care in your home Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP), Child Care Licensing Bureau Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) Michigan Liquor Control Commission (MLCC) Checked Nov 7, 2026
- General contractor LARA, Bureau of Construction Codes Checked Nov 7, 2026
- Selling homemade food (cottage food) Michigan Department of Agriculture and Rural Development (MDARD) Checked Nov 7, 2026
- Annual Statement Michigan Department of Licensing and Regulatory Affairs, Corporations Division Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026