Michigan business license guide
Last checked: April 26, 2026
Michigan does not have one simple “business license” step that covers every business. Most businesses need to check several layers: state business formation, Michigan tax registration, an assumed name if using a different public name, local city or township rules, and any industry license that applies to the work.
This guide explains the Michigan terms and agencies so you can ask the right office the right question before you open.
The short answer
In Michigan, a “business license” may mean several different things. A Michigan LLC or corporation files with the Michigan Department of Licensing and Regulatory Affairs, usually through the MiBusiness Registry Portal. A business that sells taxable goods to final consumers usually needs a Michigan sales tax license through the Michigan Treasury Online system. A sole proprietor using a name other than the owner’s real name usually files an assumed name with the county clerk. Local cities, villages, and townships may also require zoning approval, a certificate of occupancy, a home occupation license, or a local business license.
Start with your business location and activity. Those two facts decide most of the license path.
Start here: the Michigan quick-start checklist
Use this order before you spend money on signs, inventory, a lease, or paid filing help.
- Write down your exact business activity. Example: online handmade goods, food truck, home bakery, cleaning service, salon suite, contractor, cannabis business, or retail store.
- Confirm the business location. City limits matter. A mailing address may say “Detroit” or “Grand Rapids” even if the property is in a nearby township or different local unit.
- Choose whether you need to form an entity. LLCs, corporations, limited partnerships, and similar entities file with the Michigan LARA Corporations Division.
- Check your public business name. Michigan uses the term “assumed name” for many DBA-style filings. The filing office depends on your structure.
- Register for Michigan taxes if needed. Retail sellers usually need a Michigan sales tax license. Employers may need withholding and unemployment accounts.
- Ask the local city, village, or township about zoning and local licensing. Do this before you sign a lease or open from home.
- Check industry permits. Food, alcohol, construction trades, salons, health professions, cannabis, child care, environmental activities, and transportation may involve extra state or local approvals.
- Keep proof and renewal dates. Save filings, account numbers, licenses, permits, inspection approvals, and agency emails in one folder.
Michigan facts to know first
These are the details that make Michigan different from a generic “business license” article.
| Topic | Michigan-specific answer | Where to check |
|---|---|---|
| One statewide general business license | Michigan’s official path is not one single general license for every business. The state points businesses to entity filings, tax registration, state license searches, and industry permits. Local governments may still require licenses or approvals. | State of Michigan business resources |
| State business entity filing office | LLCs, corporations, limited partnerships, limited liability partnerships, and many foreign entities work through the LARA Corporations Division. Michigan now uses the MiBusiness Registry Portal for online filings. | LARA Corporations Division |
| DBA language | Michigan commonly uses “assumed name.” LLCs and corporations file assumed names with LARA. Sole proprietors and co-partnerships usually file with the county clerk. | LARA LLC naming rules and your county clerk |
| Sales tax license | Businesses that sell tangible personal property to final consumers generally need a Michigan sales tax license. Michigan’s state sales tax rate is 6%, and the Michigan Treasury says there is no city, local, or county sales tax. | Michigan sales tax license FAQ |
| Michigan tax portal | Michigan Treasury Online, often called MTO, is the state portal for many business tax accounts, including sales, use, and withholding tax access. | Michigan Treasury Online |
| Employer setup | If you have employees covered by Michigan unemployment law, you must register for an employer account. The UIA says you need a Federal EIN before registering. | Michigan UIA employer resources |
| City income taxes | Michigan has 24 cities that levy municipality taxes related to income. This can matter for employers and businesses operating in those cities. | Michigan Treasury city income tax FAQ |
Important: Forming an LLC with Michigan LARA is not the same as getting every license you need. It creates or registers the legal entity. It does not replace tax accounts, local zoning, a local business license, a food license, a professional license, or a certificate of occupancy.
The license layers in Michigan
Most mistakes happen when a business owner treats one approval as if it covers all layers. Keep the layers separate.
| Layer | What it may cover | Michigan example | Does it replace the other layers? |
|---|---|---|---|
| Federal | Federal tax ID, federal permits for federally regulated activities, federal employment tax duties | IRS EIN; federal permits for activities regulated by federal agencies | No |
| State | Entity filing, sales tax license, withholding, unemployment account, state-regulated professions or industries | LARA entity filing; Michigan Treasury sales tax license; LARA professional or construction trade license | No |
| County | Assumed names for sole proprietors and co-partnerships, some health department permits, local records | County clerk DBA-style assumed name; county or district health department food service license | No |
| City, village, or township | Local business license, zoning, occupancy, signs, fire/building permits, home occupation approval, local taxes | Sterling Heights annual business license; Detroit BSEED licensing and permits; Grand Rapids home occupation licenses | No |
| Private platform or landlord | Marketplace rules, lease rules, insurance rules, HOA limits | Amazon, Etsy, DoorDash, commercial lease, shopping center rules, HOA covenants | No |
Michigan state steps
1. Decide whether to form a Michigan entity
If you want to operate as an LLC, corporation, nonprofit corporation, limited partnership, or limited liability partnership, start with the LARA Corporations Division. LARA says the Corporations Division handles formation of these entity types and certificate-of-authority filings for foreign entities that transact business in Michigan.
Michigan’s Corporations Division says the MiBusiness Registry Portal is now available for online filings, searches, certificates, and copies. LARA also says annual reports and annual statements must now be submitted online.
Practical tip: If you are forming an LLC or corporation, file the state entity before applying for an EIN. The IRS says that if you are creating a legal entity, you should register it with the state before applying for an EIN.
2. Know the difference between your legal name and an assumed name
Michigan uses the term “assumed name” for many DBA-style situations.
- Michigan LLCs: If an LLC operates under a name other than its true LLC name, LARA says a Certificate of Assumed Name must be filed.
- Michigan corporations: If a corporation operates under a name other than its true corporate name, LARA says a Certificate of Assumed Name must be filed.
- Sole proprietors and co-partnerships: County clerk pages in Michigan commonly state that these filings are handled by the county clerk, not LARA. Check the county where you do business.
Do not assume one name search covers everything. A county assumed name record and a LARA entity name search are not the same database.
3. Register for Michigan taxes if your activity requires it
Michigan Treasury offers Online Business Registration for Michigan business taxes. Treasury says this online process is faster than registering by mail and can be used for a new sales tax license and many business tax registrations.
If you sell tangible personal property to the final consumer, check the Michigan sales tax license FAQ. Treasury says retailers must be licensed to collect and remit Michigan sales tax. Treasury also says Michigan has no city, local, or county sales tax and the state sales tax rate is 6%.
Treasury says a sales tax license is available through MTO after processing, and sales tax licenses are issued yearly for January through December of the tax year listed on the license.
4. Register as an employer if you hire workers
If you hire employees, you may need several accounts and reports. Start with these:
- Federal EIN: The IRS says an EIN is a federal tax ID number. You can get one free directly from the IRS.
- Michigan withholding: Employers may need to register for Michigan withholding through Treasury.
- Michigan unemployment insurance: The UIA says businesses with employees covered by Michigan unemployment law must register for an employer account and must have a Federal EIN to register.
- New hire reporting: Michigan MDHHS says employers are required to report newly hired or rehired employees.
- City income tax: If you operate or have employees in one of Michigan’s city income tax cities, check that city’s rules.
5. File annual reports or statements if your entity type requires them
LARA says every corporation and LLC registered with the Corporations Division must file an annual report or annual statement. LARA also says this is not the same as filing taxes.
LARA lists common due dates this way: LLC annual statements are generally due February 15 each year after organization or qualification; profit corporation annual reports are generally due May 15; nonprofit corporation annual reports are generally due October 1. Check LARA before relying on any date, because rules can differ by entity type and status.
Local licenses, zoning, and occupancy can still apply
Michigan’s state filings do not tell you whether your exact address can be used for your business. That is usually local.
Check the city, village, or township where the business is physically located. If you are outside a city, check the township and county. Ask about:
- local business license or business registration
- zoning approval for your business activity
- certificate of occupancy or use-and-occupancy approval
- building, trade, fire, and sign permits
- home occupation rules
- health department rules for food or lodging
- local income tax or employer withholding, if the city has one
- special local rules for mobile vendors, peddlers, pawnbrokers, secondhand dealers, massage businesses, cannabis, alcohol, short-term rentals, or events
Do this before signing a lease. Detroit’s business licensing page tells businesses to establish the business, check zoning requirements, apply for permits and licenses, complete inspections, and then get ready to open. That order matters. A lease does not mean the city will approve the use.
Examples of how local rules differ
Michigan local governments do not all use the same model.
- Detroit: The City of Detroit uses its BSEED business licensing process and Accela/eLAPS for licenses and permits.
- Grand Rapids: The City Clerk lists specific business licenses, including mobile food vendor, home occupation, secondhand, snowplow, transient merchant, and other license types.
- Ann Arbor: The City Clerk issues many permits and licenses, and many can be applied for online.
- Sterling Heights: The city states that all businesses operating in Sterling Heights are required to obtain an annual business license with the City Clerk.
- Lansing: The city states that certain businesses designated by City Council must obtain a city license before operating within city limits.
Industry licenses and permits to check in Michigan
Your business type may matter more than your business structure. A home bakery, residential builder, massage establishment, liquor store, and online consultant do not have the same license path.
| Business activity | Possible Michigan or local requirement | Where to start |
|---|---|---|
| Retail sales of tangible goods | Michigan sales tax license, plus local zoning or business license if applicable | Michigan Treasury sales tax license FAQ |
| Restaurants, food trucks, food processing, retail food, vending, warehouses | Food establishment licensing by MDARD or a local health department; inspection before approval to operate | MDARD food establishment license applications |
| Cottage food from a home kitchen | Michigan Cottage Food Law may allow certain low-risk foods from an unlicensed primary home kitchen, with limits and labeling rules | MDARD cottage foods information |
| Alcohol sales or manufacturing | Michigan Liquor Control Commission license, plus local approval steps for many situations | Michigan Liquor Control Commission |
| Cannabis or marijuana business | State cannabis licensing and local municipal approval or opt-in rules may apply | Michigan Cannabis Regulatory Agency |
| Construction trades and residential building | Licensing for residential builders, electrical, plumbing, mechanical, boiler, elevator, inspectors, and related trades | LARA Bureau of Construction Codes licensing |
| Licensed professions such as accountancy, architecture, barbering, cosmetology, engineering, and related occupations | Occupational or professional license through LARA, depending on profession | LARA Occupational Licensing |
| Air, waste, water, hazardous materials, industrial, or environmentally regulated activity | EGLE permits or environmental compliance review | EGLE permits |
| Federally regulated activities | Federal license or permit may be required if the activity is regulated by a federal agency | SBA federal licenses and permits overview |
Food note: MDARD says you should determine whether MDARD or the local health department licenses the food establishment. MDARD also says a food establishment license is not issued until after inspection is completed and approval to operate is given.
Home-based businesses in Michigan
A home-based business may still need licenses or approvals. The state filing and tax steps are only part of the question. Your local zoning rules decide whether the business activity is allowed at your home.
Ask your city, village, or township about:
- whether home occupations are allowed at your address
- whether customers or clients may visit
- whether employees may work at the home
- limits on signage, storage, deliveries, parking, noise, or equipment
- whether you need a home occupation permit or license
- whether your HOA, lease, or landlord rules add private limits
Grand Rapids is one example of a city that has home occupation license categories. Its City Clerk page says a Home Occupation Class B license is needed when a business operates from a home with customers or clients visiting the home. Do not assume your city uses the same categories.
Food-from-home warning: Michigan’s Cottage Food Law does not cover every food. MDARD says cottage foods are specific types of foods made in the unlicensed kitchen of a single-family domestic residence in Michigan. MDARD also says the law applies only to the kitchen of the primary residence, not a motor home, vacation home, or rented kitchen. If your product is not covered, you may need a food establishment license.
Michigan city guides and local starting points
Use a city guide if your business is in one of these places. Use the official city link if a BusinessLicenseGuide city page is not available yet.
Detroit
Detroit uses BSEED and Accela/eLAPS for many business licenses, permits, and inspections.
Grand Rapids
Grand Rapids has specific city licenses for several activities, including home occupation, mobile food vendor, secondhand, snowplow, and transient merchant uses.
Ann Arbor
Ann Arbor uses city clerk permits and licenses, plus planning, building, zoning, and county health steps where needed.
Sterling Heights
Sterling Heights states that all businesses operating in the city must obtain an annual business license with the City Clerk.
Lansing
Lansing says certain businesses designated by City Council must obtain a city license before operating within city limits.
Dearborn
Dearborn lists business and trade license information through its permits and licenses pages.
Official Michigan agency directory
Use official pages first. Third-party services may be helpful, but they should not be your only source for what the government requires.
| Need | Agency or office | Official starting point |
|---|---|---|
| Start a business, state business resources, permit search links | State of Michigan | Michigan business resources |
| LLC, corporation, limited partnership, business entity search, annual reports/statements | Michigan LARA Corporations Division | Corporations Division |
| Online entity filings | MiBusiness Registry Portal | MiBusiness Registry Portal |
| Sales tax license, use tax, withholding, business tax registration | Michigan Department of Treasury | Online Business Registration |
| Manage Michigan business tax accounts | Michigan Treasury Online | MTO |
| Unemployment employer account | Michigan Unemployment Insurance Agency | UIA employer resources |
| New hire reporting | Michigan Department of Health and Human Services, Office of Child Support | New hire reporting |
| Food establishment licensing | Michigan Department of Agriculture and Rural Development or local health department | MDARD food establishment applications |
| Cottage food rules | Michigan Department of Agriculture and Rural Development | Michigan cottage foods information |
| Professional and occupational licensing | LARA Bureau of Professional Licensing | Occupational Licensing |
| Construction code and skilled trade licensing | LARA Bureau of Construction Codes | Construction Codes Licensing Section |
| Environmental permits | Michigan EGLE | EGLE permits |
| Federal EIN | Internal Revenue Service | IRS EIN information |
| Federal license or permit check | U.S. Small Business Administration | SBA licenses and permits guide |
Common Michigan business license mistakes
- Calling every requirement a business license. A Michigan sales tax license, assumed name, LLC filing, zoning approval, professional license, and local business license are different things.
- Stopping after forming an LLC. LARA entity filing does not replace tax registration, local zoning, local licensing, or industry permits.
- Filing the assumed name in the wrong place. LLCs and corporations check LARA. Sole proprietors and co-partnerships usually check the county clerk.
- Skipping the city or township. Your business may still need a local license, zoning clearance, certificate of occupancy, sign permit, fire approval, or home occupation approval.
- Opening a food business before inspection approval. MDARD says a food establishment license is not issued until after inspection and approval to operate.
- Assuming “online only” means no Michigan rules. If you sell taxable goods to Michigan customers, operate from a Michigan home, store inventory, hire workers, or use a business name, Michigan and local rules may still apply.
- Ignoring city income tax cities. Michigan Treasury says 24 Michigan cities levy municipality taxes related to income. Check local rules if you operate or have payroll in one of them.
- Trusting official-looking mail without checking. LARA has warned businesses about scam communications. Verify filings, annual statements, and payment requests through official LARA channels.
What to ask when you contact the agency
Before you call or email, have your business activity, legal structure, exact address, city or township, county, business name, sales method, and employee plans ready. If the business is home-based, mobile, food-related, alcohol-related, cannabis-related, construction-related, or health-related, say that up front.
Phone or email script
Hello, I am planning to operate a [business type] in [city or township], [county], Michigan. The business will be [home-based / mobile / storefront / office / online] at [address or general location]. I plan to sell or provide [products or services], and I [will / will not] have employees. Can you confirm whether I need a local business license, zoning approval, certificate of occupancy, home occupation approval, health permit, tax registration, or another approval before I start? If your office does not handle this, which office should I contact next?
If you are contacting Michigan Treasury, ask about the tax account or license name. If you are contacting LARA, ask whether you need an entity filing, assumed name, professional license, or industry license. If you are contacting a city or township, ask about address approval, not just the business name.
- Write down the agency name and office name.
- Write down the person’s name or ticket number if provided.
- Ask for the exact license, permit, registration, or approval name.
- Ask for the official application link or form page.
- Ask whether zoning or inspection must happen before opening.
- Ask whether there is a renewal date or annual filing.
- Ask whether another agency must approve the business first.
- Save the date of the call or email and a copy of the answer.
If you are stuck, do this now
- Search your address on the city, village, or township website to confirm the local government.
- Open the Michigan Treasury sales tax FAQ if you sell physical products to final consumers.
- Open the LARA Corporations Division page if you are forming or maintaining an LLC or corporation.
- Search your business type with “Michigan LARA license,” “Michigan MDARD food,” “Michigan EGLE permit,” or your city name plus “business license.”
- Call or email the local clerk or zoning office using the script above.
Official sources used
- State of Michigan business resources
- Michigan LARA Corporations Division
- MiBusiness Registry Portal
- LARA annual reports and annual statements
- LARA naming a limited liability company
- LARA naming a corporation
- Michigan Treasury online business registration
- Michigan Treasury sales tax license FAQ
- Michigan Treasury Online
- Michigan UIA employer resources
- Michigan new hire reporting
- MDARD food establishment license applications
- MDARD cottage foods information
- LARA occupational licensing
- LARA Bureau of Construction Codes licensing
- Michigan EGLE permits
- IRS EIN information
- SBA licenses and permits overview
Review note
This page was last checked against official Michigan, local, IRS, and SBA sources on April 26, 2026. Michigan portals, filing rules, city license lists, tax instructions, forms, fees, and agency processes can change. Always confirm current requirements with the responsible agency before you file, pay, lease space, hire employees, or open to the public.
FAQ
Does Michigan have a statewide general business license?
Michigan does not use one single state license that covers every business. Most businesses need to check state entity filings, Michigan tax registration, industry licenses, and local city, village, or township rules.
Is forming an LLC the same as getting a Michigan business license?
No. Forming an LLC with Michigan LARA creates or registers the legal entity. It does not replace a sales tax license, local business license, zoning approval, food license, professional license, or certificate of occupancy.
What is a DBA called in Michigan?
Michigan commonly uses the term assumed name. LLCs and corporations generally file assumed names with LARA. Sole proprietors and co-partnerships usually file with the county clerk.
Who needs a Michigan sales tax license?
Michigan Treasury says individuals or businesses that sell tangible personal property to the final consumer need a sales tax license. Service businesses should still check Treasury guidance if they also sell goods, parts, products, or taxable items.
Does Michigan have local sales tax?
Michigan Treasury says Michigan has no city, local, or county sales tax. The state sales tax rate is 6%. Local governments may still have business licenses, zoning rules, fees, or city income tax obligations.
Do I need a license for a home-based business in Michigan?
You may. State tax or industry rules can apply, and your city, village, or township may require zoning approval or a home occupation permit. Check local rules before customers visit, signs go up, inventory is stored, or employees work from the home.
Do online businesses need a Michigan business license?
An online business may still need Michigan tax registration, an assumed name filing, a local home occupation approval, or an industry license. The answer depends on what you sell, where you operate, where inventory is stored, and whether you hire employees.
Where do I register if I hire employees in Michigan?
Start with a Federal EIN from the IRS. Then check Michigan Treasury for withholding tax registration and the Michigan Unemployment Insurance Agency for an employer account if your employees are covered by Michigan unemployment law. Michigan also requires new hire reporting.
Plain-English disclaimer
This guide is for general information only. It is not legal, tax, financial, insurance, employment, safety, zoning, immigration, or professional advice. Business rules, prices, forms, portals, availability, and agency policies can change. Confirm important details with the official agency or a qualified professional before you act.