Michigan Business Tax F.A.Q.

All new businesses that have Michigan employees must register with the Internal Revenue Service (IRS) and the Michigan Department of Treasury for Social Security Tax (federal) and income tax withholding (federal and state). Some cities also levy a city income tax. Contact your City Treasurer's office for information.

Individuals or businesses that sell tangible personal property to the final consumer also need a sales tax license. In order to register for sales tax, please follow the application process outlined on Form 518, Complete Registration Booklet.

What form do I use to register for Michigan Business Taxes?

Complete Form 518 online at http://www.michigan.gov/taxes/0,1607,7-238-43519_43521-155361--,00.html or mail the completed application to the address listed on the form. (allow two weeks for processing)

I will be selling my product on the Internet. How do I register for a sales tax license?

Michigan residents who will be making Internet sales should register using the Online Streamline Registration Process at https://www.sstregister.org/sellers/Entry.aspx.

I want to sell my product at a trade show in Michigan and I don't have a Michigan sales tax license. Do I need to register?

• Yes. If you will be selling your product every year.

• No. If you will not be selling your product every year. Instead file Form 2271, Concessionaire's Sales Tax Return and Payment.

May I send questions concerning the registration of a business via e-mail?

Yes. You may e-mail questions to treasreg@michigan.gov. However, if the information you are requesting is confidential, we must respond via U.S. Mail, rather than e-mail. Please provide your name, address, and phone number with your inquiry.

How do I notify you of my business moving or closing?

You may submit Form 163, Notice of Change or Discontinuance or you may write to the Michigan Department of Treasury, Treasury Building, Lansing, MI, 48922. You may also fax the information to 517-636-4520. Be sure to include your name, address, account number, and an effective date of discontinuance of tax liability. 

How do I get a Federal Employee Identification Number (FEIN)?

The Internal Revenue Service (IRS) issues a FEIN to all persons or business entities with employees who are subject to the income tax withholding provisions of the Internal Revenue Code. The number is also issued to corporations, limited liability companies, and partnerships. Individuals with no employees do not need a FEIN. Additional information and forms to apply for a FEIN may be obtained at http://www.irs.ustreas.gov/businesses.

Other Government Requirements: 

What is a Department of Labor & Economic Growth identification number?
Michigan corporations, limited liability companies, and limited partnerships are given an a six-digit identification number when they file their Articles of Incorporation with the Bureau of Commercial Services. This should not be confused with a federal identification number or a tax identification number.

How do I file to become a Corporation or Limited Liability Company (LLC)?

To obtain information, forms, and name availability on corporations or limited liability companies (LLC) go to the Department of Labor & Economic Growth website at www.michigan.gov/cis.

Who is required to submit new hire reports?

A new hire reporting form is required for each new, rehired, or returning employee. This is available from the Michigan New Hire Operations Center at 1-800-524-9846 or visit their web- site at http://mi-newhire.com/MI-Newhire/Default.aspx. Additionally, employers must maintain an Immigration and Naturalization Service Form I-9, Employment Eligibility Verification that verifies that every employee is eligible for work in the United States and the federal W-4 and state MI-W4 for withholding information. Federal forms can be downloaded from www.irs.gov. Hiring employees incurs responsibilities for making federal and state tax deposits, filing periodic employment reports, and maintaining insurance coverage on employees.