Last updated: September 2025
Quick Help (save this)
- City of Detroit — BSEED (Licenses, permits, inspections) — Official hub for business licenses, zoning, certificates, and inspections in Detroit. Find licensing requirements and apply.
- Detroit Health Department — Food Safety Program — Restaurant, food truck, commissary, grocery, and temporary food licenses. Includes plan review, inspections, and renewal info.
- Michigan Department of Treasury — Michigan Treasury Online (MTO) — Register for sales tax, use tax, and employer withholding. Michigan sales tax rate: 6% (statewide).
- LARA — Corporations Division (Register LLC/Corp) — Form or manage your Michigan LLC or corporation and file assumed names for companies. Statewide entity records and filings.
- IRS — Get an EIN (free) — Employer Identification Number is needed for hiring, banking, and taxes. EIN costs $0. IRS Business & Specialty Tax Line: 800-829-4933.
- Michigan UIA — Unemployment Insurance — Register as an employer if you hire staff. File reports and pay UI taxes.
- Workers’ Disability Compensation Agency — Workers’ comp rules. Required if you have 3+ employees, or 1 working 35+ hours/week for 13+ weeks.
- Motor City Match (grants and space help) — Competitive Detroit grants and support. Some cash grants up to $100,000 for brick-and-mortar businesses.
- Detroit Means Business (free help) — Local help desk, office hours, and referrals for Detroit entrepreneurs.
- Michigan SBDC (no-cost advisors) — Coaching on licensing, finance, and growth. Book virtual or in-person sessions statewide.
What this guide covers (and how to use it)
- You’ll get a step-by-step path from zoning and state registrations to Detroit’s business license.
- Every claim links to an official or well-established source. If a dollar amount isn’t shown, use the official fee schedule linked in that exact section.
- Detroit has real hurdles (zoning, inspections, timelines). We flag them and show backup options at the end of each section.
- Skim the “Checklist” and tables first. Then drill into the sections that match your business type (food, contractors, childcare, retail, etc.).
Detroit reality check (facts you need before you start)
- Michigan does not have a “general” statewide business license. You’ll register your legal entity with the State (LARA), your taxes with Treasury, and then get Detroit’s local license if your activity requires it. Source: LARA — Corporations Division (official).
- Michigan sales tax is 6% and applies to most retail sales of tangible goods and some services. You register on MTO (free). Source: Michigan Treasury — Sales, Use, and Withholding Taxes overview.
- Detroit has a city income tax (administered by the State of Michigan). Historic rates: Residents 2.4%, Nonresidents 1.2%, Corporations 2.0%. Always confirm the current year’s rate on the State’s city tax page. Source: Michigan Department of Treasury — City Income Tax.
- For many Detroit business licenses, you’ll need zoning approval and a Certificate of Occupancy/Compliance before your license is issued. Source: City of Detroit — BSEED.
- Food businesses are licensed through the Detroit Health Department (plan review is required for new builds and major remodels). Source: Detroit Health Department — Environmental Health/Food Safety.
The fastest path: Detroit startup checklist (with links)
Use this if you just want the practical order of operations.
| Step | What to do | Where to do it | Notes |
|---|---|---|---|
| 1 | Confirm your location is zoned for your use | City of Detroit — BSEED | Ask for zoning verification. If you’re changing the use, expect permits/inspections. |
| 2 | Form your entity (LLC/Corp) or file an assumed name | LARA — Corporations Division | Sole proprietors file DBAs at the County Clerk; companies file assumed names with LARA. |
| 3 | Get your EIN ($0) | IRS — EIN online | Needed for banking, payroll, and 1099s. |
| 4 | Register for sales tax and withholding | Michigan Treasury — MTO | Sales tax license is generally $0. |
| 5 | Line up occupancy and building permits | City of Detroit — BSEED | Certificate of Occupancy/Compliance is often required before licensing. |
| 6 | Apply for your Detroit business license | City of Detroit — BSEED (Licensing) | Requirements vary by business type; check the category list. |
| 7 | If food-related, apply for health license | Detroit Health — Food Safety | Plan review may be required; book inspections early. |
| 8 | If hiring, register for UI and workers’ comp | Michigan UIA and WDCA | Workers’ comp is required in most active employment situations. |
| 9 | Open bank account, set up POS, collect tax | Your bank and POS provider | Keep tax and license documents handy for account setup. |
| 10 | Save renewal dates and compliance tasks | Your calendar | Missed renewals cause late fees and closures. |
What to do if this doesn’t work:
- Book no-cost help from Michigan SBDC or Detroit Means Business.
- Ask BSEED Licensing staff at the public counter; start at BSEED’s department page to find the License Center and office hours.
- If your location isn’t zoned, talk to a Detroit zoning planner before you sign a lease; you may need a different space or a discretionary approval process.
Do you even need a Detroit business license?
Start here. Not every activity requires a Detroit business license, but many do (food service, retail, auto repair, secondhand dealers, entertainment/amusement, tobacco, etc.). Detroit’s licensing rules are managed by BSEED.
- See the official licensing hub: City of Detroit — BSEED (Licenses).
- Food service establishments are licensed by the Detroit Health Department, not BSEED. See: Detroit Health — Food Safety.
- State-licensed professions (real estate, electricians, barbers/cosmetology, builders, etc.) are regulated by LARA’s Bureau of Professional Licensing or trade bureaus; you may still need a Detroit business license, depending on activity. Check: LARA — Bureau of Professional Licensing.
Common Detroit license categories (examples)
- Retail store, grocery, or market (BSEED license; Health Department license if selling potentially hazardous food).
- Restaurant, café, bar, or food truck (Health Department license; MLCC if alcohol; BSEED for location/occupancy).
- Contractor shops (BSEED location compliance; State builder/electrical/plumbing/mechanical licenses via LARA).
- Auto repair, auto dealer, or car wash (BSEED license; dealer licenses also involve State-level agencies).
- Entertainment/amusement (arcades, theaters, music venues) and certain events (BSEED license; fire safety inspections).
Table: Detroit license types and where to start
| Business type | Primary license/permit | Where to start | Fee info |
|---|---|---|---|
| Retail shop (non-food) | Detroit Business License | BSEED | See BSEED fee schedule and category requirements. |
| Restaurant/café | Food Service License | Detroit Health — Food Safety | Plan review fees + license; see Health Dept fee schedule. |
| Food truck/cart | Mobile Food License | Detroit Health — Food Safety | Commissary agreement usually required; see fees. |
| Bar/serving alcohol | MLCC + Food License + BSEED | MLCC and Detroit Health | MLCC application fees vary; Detroit approvals may be required. |
| Auto repair | Detroit Business License | BSEED | See BSEED fee schedule. |
| Contractor office | State trade license + BSEED location compliance | LARA BPL and BSEED | State license fees listed at LARA; check Detroit occupancy rules. |
| Child care center | State CCLB license | LARA — Child Care Licensing | State fees/ratios; also ensure Detroit occupancy and zoning compliance. |
What to do if this doesn’t work:
- Take your activity description to the BSEED License Center and ask which category applies; start from: BSEED homepage.
- For food, talk to the Food Safety team early: Detroit Health Department.
- Use SBDC to verify overlapping State and City rules: Michigan SBDC.
Zoning and location: check before you sign a lease
Most licensing delays in Detroit start with zoning. Before you sign anything, confirm your use is permitted at the address. If you’re changing the use (for example, turning an office into a café), expect building permits, inspections, and a Certificate of Occupancy.
- Start with BSEED: City of Detroit — BSEED.
- Ask about a Zoning Verification/Land Use approval and whether your use is “by right” or needs a hearing or variance. Source: City of Detroit — BSEED (Zoning).
- Certificate of Occupancy/Compliance is often required before licensing. Source: BSEED — Permits and Certificates.
Real-world example:
- A small sneaker shop plans a 1,200 sq. ft. retail space. Zoning is “by right” for retail. The landlord has a valid Certificate of Occupancy for retail. Result: they apply for the Detroit license right away with minimal buildout.
- A café wants to convert a former office. This is a change of use. They must submit plans, get building/electrical/plumbing/mechanical permits, pass inspections, obtain a new Certificate of Occupancy, and then apply for Health and Detroit licenses. The buildout takes months; the license comes near the end.
What to do if this doesn’t work:
- If zoning is not permitted, ask about alternative sites planners recommend or whether a special land use or variance is realistic for your timeline. Start at BSEED.
- Negotiate your lease with a contingency clause allowing you to exit if zoning or licensing is denied or delayed beyond a set date.
- Get design help from Motor City Match (if eligible) or an architect familiar with Detroit permitting: Motor City Match.
Form your business, get your tax IDs (State and Federal)
Before most local licenses, you’ll need to formalize your business and register for taxes.
- Michigan entity registration (LLC/Corp/Nonprofit): LARA — Corporations Division. Official filings, annual reports, and assumed names for companies.
- Sole proprietors/partnerships using a trade name often file a DBA with the County Clerk (Wayne County for Detroit). See: Wayne County Clerk — Business/Assumed Names and navigate to Clerk > Business Services for current instructions and fees.
- EIN from the IRS is $0: IRS — Apply for an EIN online. EIN helpline: 800-829-4933.
- Sales tax, use tax, and employer withholding: register on Michigan Treasury Online (MTO). Sales tax license generally costs $0. Source: Michigan Treasury — Business Taxes.
- Unemployment Insurance if you hire: Michigan UIA. Workers’ comp rules: Workers’ Disability Compensation Agency.
Table: State registrations at a glance
| Registration | Who needs it | Cost | Where | Source |
|---|---|---|---|---|
| LLC/Corp formation | Most formal businesses | Check LARA fee schedule | LARA — Corporations Division | LARA (official) |
| DBA (assumed name) | Sole props/partnerships in Wayne Co. | Check County Clerk | Wayne County Clerk | Wayne County (official) |
| EIN | Anyone hiring or forming an entity | $0 | IRS — EIN Online | IRS (official) |
| Sales & Use Tax | Retailers/service providers as applicable | $0 | MTO | Michigan Treasury (official) |
| Employer Withholding | Employers | $0 | MTO | Michigan Treasury (official) |
| Unemployment Insurance | Employers | $0 to register | UIA | State of Michigan (official) |
| Workers’ Comp Coverage | Most employers (see rules) | Varies by carrier | WDCA | State of Michigan (official) |
What to do if this doesn’t work:
- If your entity filing keeps bouncing, call LARA or use their contact portal from the Corporations Division page. Consider using a registered agent or an attorney for tricky structures.
- If MTO registration errors persist, use the “Contact” link within MTO or ask the Michigan SBDC to review your NAICS/tax selections before submission.
- If you’re unsure whether you must collect sales tax, read Michigan Treasury’s guidance on taxable services and use the “Ask Treasury” contact tools: Michigan Treasury — Business Taxes.
Detroit Business License: how to apply (BSEED)
This is the core city license for many categories. The exact application, inspection, and fee depend on your business type.
Start with the official page and category list:
- City of Detroit — BSEED (Business Licenses, Certificates, Inspections).
- You may be asked for: zoning approval, Certificate of Occupancy/Compliance, a floor plan, insurance, state licenses (if applicable), and tax registrations.
- Renewal schedules and fees vary by category. Use the BSEED fee schedule on the licensing page for current dollar amounts and renewal timelines.
Applications and processing tips:
- Submit complete packages. Missing documents often cause multi-week delays.
- If your space needs inspections (building, electrical, plumbing, mechanical, or fire), book them as soon as your work is ready.
- If your business involves regulated items (tobacco, firearms, secondhand goods), expect extra documentation and background checks.
What to do if this doesn’t work:
- Visit the BSEED License Center public counter (see office hours and location from the BSEED page) and ask for a pre-application review checklist.
- Bring your floor plan, lease, prior Certificates, and any state licenses so staff can point to gaps before you apply.
- If you keep getting stuck, get a one-time consult through Detroit Means Business or hire a local licensing expeditor.
Food businesses (restaurants, food trucks, groceries, temporary events)
Food licensing in Detroit is run by the Detroit Health Department’s Food Safety team. This is separate from BSEED, though BSEED still handles building/occupancy.
- Start here: Detroit Health Department — Food Safety Program.
- New or remodeled kitchens typically require a Health Department plan review before construction. You’ll submit detailed kitchen plans, equipment lists, menus, and finish schedules.
- Restaurants, cafés, caterers, groceries, commissaries, and mobile food units each have different requirements and fee schedules. Use the Food Safety page for forms and current dollar amounts, inspection timelines, and renewals.
- Mobile food units (food trucks/carts) generally need an approved commissary in Detroit (or an approved nearby jurisdiction) and vehicle/handwashing compliance. Expect a pre-opening inspection.
Fire and building safety:
- Commercial cooking that produces grease-laden vapors typically needs a Type I hood, fire suppression, and frequent maintenance. BSEED and the Fire Marshal will verify compliance. Start at: City of Detroit — Fire Department and ask for Fire Marshal permits/inspections.
Real-world examples:
- A café opening in a former office will do plan review (Health), build the kitchen with permits (BSEED), pass inspections, get a Certificate of Occupancy, then receive the Health license and finally the Detroit business license.
- A food truck approved in another Michigan county must still meet Detroit’s local mobile food rules, have an approved commissary, and pass a Detroit inspection before operating in the city limits.
What to do if this doesn’t work:
- If plan review stalls, schedule a plan review meeting via the Health Department’s Food Safety page and ask what items are blocking approval.
- If your buildout is behind, coordinate temporary operations (e.g., pop-ups) only if fully licensed for that use and location. Ask Health about temporary food licenses for events.
- Get no-cost help with menu and facility layout from the Michigan SBDC; they can review traffic flow, equipment specs, and compliance basics.
Alcohol (bars, breweries, restaurants serving liquor)
Alcohol licensing runs through the Michigan Liquor Control Commission (MLCC). Detroit often requires local approvals, building/occupancy, and health licensing alongside MLCC steps.
- Start here: Michigan Liquor Control Commission (MLCC) — Licensing.
- Detroit premises must have the correct zoning/use, Certificate of Occupancy, and fire capacity. Begin with BSEED and your architect.
- Licenses vary (Class C, tavern, brewpub, manufacturer, special licenses, off-premise). Application fees differ by license type; consult MLCC’s current fee schedule.
Typical order:
- Secure location and zoning.
- File MLCC application (with ownership, floor plans, finances, background checks).
- Complete buildout, pass inspections, secure Occupancy, Health (if serving food), and any local approvals required by Detroit/City Council.
- MLCC final approval and issuance.
What to do if this doesn’t work:
- Arrange a pre-application meeting with MLCC and your local counsel. Start with MLCC’s contact options from their licensing page.
- Explore a conditional license or use a different license type (e.g., a Special License for limited events) while you build out.
- Use a specialist attorney for licensing strategy and documented statements of “affirmative necessity” when needed.
Contractors and skilled trades
If you are doing construction work for hire, you may need a state license and Detroit permits. Office/yard locations must meet zoning and occupancy rules.
- Michigan licensing for builders, electricians, plumbers, mechanical contractors: LARA — Bureau of Professional Licensing. Each trade has specific exams, experience, and fees.
- Pull permits for each trade and project with BSEED; only licensed contractors may pull certain permits. Start at: City of Detroit — BSEED (Permits).
- If you maintain a contractor office/yard in Detroit, confirm zoning and apply for occupancy. Some contractor businesses also fall under Detroit licensing categories depending on activities.
What to do if this doesn’t work:
- If you fail an exam or lack required hours, apply as a maintenance contractor where allowed or work under a licensed master until eligible. See your trade’s page under LARA BPL.
- If a Detroit permit is stuck, ask for a plan review meeting with BSEED to resolve code issues in one session.
Child care businesses
Child care centers and group homes are state-licensed. Detroit also enforces zoning/occupancy.
- State licensing: LARA — Child Care Licensing Bureau (CCLB). See ratios, background checks, training, home vs. center rules, and fee schedules.
- Detroit zoning and occupancy still apply. Convert residential/commercial spaces only after checking zoning with BSEED and securing a Certificate of Occupancy.
- The State will not approve your license if the facility fails local building, fire, and health requirements.
What to do if this doesn’t work:
- If a site doesn’t meet zoning or playground setbacks, ask CCLB and BSEED early about alternatives or a different site type (group vs. center).
- Use Michigan’s Great Start to Quality and SBDC for business planning, staff training pathways, and grant leads.
Taxes you’ll likely face (with sources)
- Michigan sales tax: 6%. Register at MTO. Source: Michigan Treasury — Business Taxes.
- City of Detroit income tax: administered by the State. Verify current year rates and forms at the State’s city tax pages. Historically: Residents 2.4%, Nonresidents 1.2%, Corporations 2.0%. Source: Michigan Department of Treasury — City Income Tax.
- Employer taxes: Withholding via MTO; unemployment via UIA.
- Personal property tax on business equipment may apply; check with the City for filing and exemptions. Start at City of Detroit — Office of the Assessor.
What to do if this doesn’t work:
- If you get a city tax notice you don’t understand, use the State Treasury contact options for City Income Tax on the Michigan Taxes site.
- Use the SBDC to set up your sales tax collection and filing calendar correctly from day one: Michigan SBDC.
Timelines: realistic expectations
Timelines change by project scope and workload at the City and State. Here are typical ranges you can plan around; always confirm current expectations with the agency.
Table: Example timelines (typical ranges, not guarantees)
| Business type | Key approvals | Typical sequence length |
|---|---|---|
| Retail shop in ready retail space | Zoning check, Occupancy verification, Detroit License | 2–6 weeks if no buildout and all documents are ready |
| New café w/ kitchen buildout | Zoning, BSEED permits, Health plan review, inspections, Occupancy, Health license, Detroit License | 8–24+ weeks depending on construction and inspections |
| Food truck | Commissary agreement, Health mobile unit inspection, Detroit location permissions, Detroit License (if applicable) | 2–8+ weeks depending on equipment and inspection slots |
| Contractor office | Zoning/occupancy, State licenses (if not already held), Detroit License (if applicable) | 2–8 weeks |
| Child care center | Zoning/site, buildout, State CCLB licensing, local Occupancy | Several months; start early with CCLB |
What to do if this doesn’t work:
- If your project timeline is slipping, line up temporary revenue streams that are lawful (e.g., licensed pop-ups, catering from a licensed commissary, e-commerce).
- Ask agencies about “conditional” steps that can run in parallel (e.g., plan review while finalizing your lease).
- Keep documents current; expired inspections or certificates can reset the clock.
Costs and budgeting (how to avoid surprises)
You’ll pay State filing fees, plan review fees (for food/building), inspections, and Detroit licensing fees by category. Because fees change, use the official fee schedules below.
- Detroit licensing and inspection fees: see BSEED’s official fee schedule and your category page: BSEED — Licensing.
- Detroit Health food fees (plan review, licenses, temporary events): see Food Safety fee pages via Detroit Health Department.
- LARA formation and occupational license fees: see LARA.
- MLCC liquor fees by license: see MLCC — Licensing.
Table: Cost planning worksheet (fill with official amounts from linked pages)
| Cost item | Where to find the current amount | Notes |
|---|---|---|
| State entity filing | LARA — Corporations Division | LLC, Corp, DBA (company assumed name) |
| Detroit Zoning/Occupancy | BSEED | Zoning review, Certificates |
| Building permits | BSEED (Permits) | Building, Electrical, Mechanical, Plumbing |
| Health plan review (food) | Detroit Health — Food Safety | New or remodel kitchens |
| Food service license | Detroit Health — Food Safety | Facility type determines fee |
| MLCC liquor license | MLCC — Licensing | Application + local approvals |
| Detroit business license | BSEED — Licensing | Category-based fee |
| Fire inspections | Detroit Fire Department | Hood/suppression and occupancy |
| Insurance (GL, WC) | Your carrier | Quotes vary by industry |
| POS/accounting setup | Vendor | Hardware + software subscriptions |
| Sign permits | BSEED (Permits) | Exterior signs need permits |
What to do if this doesn’t work:
- Apply to Motor City Match for potential grants up to $100,000 and technical support.
- Check Detroit Means Business for new city grants/loans and office hours.
- Use SBDC for cash flow planning and realistic pre-revenue runway: Michigan SBDC.
Renewals and ongoing compliance
- Put your Detroit license renewal date, Health license renewal (if applicable), and annual State filings into your calendar right after issuance.
- City inspections (fire, hood suppression, boiler) often have annual or semiannual intervals. Keep tags and logs current to avoid shutdowns.
- State annual reports for LLCs and corporations are due each year. Check your entity’s due month and file online via LARA: LARA — Corporations Division.
What to do if this doesn’t work:
- If you miss a renewal, check if your license can be reinstated with a late fee before starting over.
- If you receive a violation notice, correct issues and schedule reinspections quickly. Ask for written clarification of each item with code references.
Home-based businesses in Detroit
Home operations are limited by zoning. Some activities are allowed with “home occupation” rules; others are not (e.g., certain retail traffic or on-site employees).
- Verify permitted home occupations and any registrations required: Start with BSEED.
- Food from home kitchens has strict limits under State law (Cottage Food Law). Sales are allowed for certain non-potentially hazardous foods with labeling and sales caps. See: Michigan Department of Agriculture & Rural Development — Cottage Food and search “Cottage Food.”
What to do if this doesn’t work:
- If your activity isn’t allowed at home, look for low-cost commercial kitchens, co-working, or micro-retail spaces. Check Detroit Means Business and Motor City Match.
- Use SBDC to model when off-site space becomes affordable vs. staying home-based: Michigan SBDC.
Signage, occupancy limits, and fire safety
- Exterior signs require permits from BSEED. Don’t install signs without permits; violations get expensive. Start at BSEED (Permits).
- Occupant load posted by Fire or BSEED must match your operations. Don’t exceed capacity; it’s a common violation.
- Cooking operations need compliant hoods and suppression. Schedule inspections and keep maintenance logs. See Detroit Fire Department.
What to do if this doesn’t work:
- If a sign permit is denied, ask about revisions to size, lighting, or placement that would pass.
- For hood issues, engage a certified suppression vendor who knows Detroit’s requirements and can appear at reinspection.
Inclusivity, diversity, and accessibility resources (Detroit and Michigan)
There are programs for women-owned, minority-owned, disabled-owned, veteran-owned, LGBTQ+-owned, and immigrant-owned businesses. Many help with certification and contracting, and some connect you to grants or training.
- City of Detroit certifications (Detroit-Based Business, Detroit Headquartered Business, Detroit Resident Business, Micro/Small Business): Detroit CRIO — Civil Rights, Inclusion & Opportunity. Local certifications can improve your position in City contracting.
- State/Federal supplier diversity certifications:
- MDOT — Disadvantaged Business Enterprise (DBE) — For transportation-related contracts.
- SBA — Women-Owned Small Business (WOSB/EDWOSB) — Federal set-asides.
- SBA — Veteran Small Business Certification (VetCert) — For VOSB/SDVOSB.
- NGLCC — LGBTBE Certification — National LGBTQ+ Chamber of Commerce certification recognized by many corporates.
- Disability:IN — DOBE Certification — Disability-owned supplier certification.
- Local and statewide support:
- Great Lakes Women’s Business Council (WBENC partner) — Certification and counseling (Southfield-based).
- Michigan Minority Supplier Development Council (MMSDC) — MBE certification and corporate supply chain access.
- Michigan Veterans Affairs Agency (MVAA) — Navigation and benefits for veteran entrepreneurs.
- Detroit Office of Immigrant Affairs — Language access, navigation, and city services for immigrant founders.
What to do if this doesn’t work:
- If your certification is delayed, ask the certifying body for a pre-review checklist and sample submissions. Most delays are documentation.
- If English is not your preferred language, ask the agency for language access resources or bring a trusted interpreter. Start with Detroit Office of Immigrant Affairs.
Common mistakes to avoid (Detroit-specific)
Table: What goes wrong and how to fix it
| Mistake | Why it’s a problem | How to avoid it |
|---|---|---|
| Signing a lease before checking zoning | Use may not be allowed, causing long delays or denials | Get a zoning verification from BSEED first |
| Skipping Certificate of Occupancy | Licensing requires valid occupancy for your use | Ask the landlord for the current Certificate; if use changes, plan for new CoO |
| Partial applications | Missing documents stall your file | Use BSEED’s category checklist and submit a complete packet |
| Underestimating buildout time | Permits, inspections, rework add weeks | Add buffer time and request consolidated inspections |
| Food plan changes after plan review | You may need a new review | Lock in menu and equipment before plan review |
| Exceeding posted capacity | Fire safety violation | Train staff on occupancy; post the load where customers and staff can see it |
| Waiting on grants to start permits | Grants take time and are competitive | Start permits/plan review with your base budget; treat grants as upside |
| Not registering for sales tax | Leads to penalties | Register at MTO before selling taxable goods/services |
| Missing annual reports | Entity can fall out of good standing | Calendar your LARA annual report and city license renewals |
| Not aligning State and City names | Name mismatches complicate licensing | Use the same legal name/DBA everywhere |
What to do if this doesn’t work:
- If you’ve already made a misstep, bring everything to a BSEED or SBDC advisor and map out a fix. Keep written notes of agency guidance and timelines.
- If you get a formal violation, correct and document fixes quickly; request reinspection dates in writing.
Real-world case snapshots
- Retail apparel shop: The owner confirmed the space had an existing retail Certificate of Occupancy, registered for sales tax on MTO ($0), obtained an EIN ($0), and applied for a Detroit business license. With no buildout beyond paint/shelving, the license issued in a few weeks after a quick inspection.
- Neighborhood café: Lease had a contingency for permits. The owner completed Health plan review, BSEED permits, hood/suppression installation, and multiple inspections. Occupancy posted and Health license issued, then the Detroit license was approved. Even with a reliable contractor, the process took several months.
- Food truck: The operator secured a commissary agreement, passed Detroit’s mobile unit inspection, and confirmed all operations within Detroit’s rules. Because the truck used NSF equipment and had clean past inspections, approval came in a few weeks.
Where to get help (and how to reach them)
Table: Who to contact and how
| Need | Agency | Where to start |
|---|---|---|
| Zoning, permits, business license | City of Detroit — BSEED | BSEED department page |
| Food licensing & inspections | Detroit Health Department — Food Safety | Detroit Health — Food Safety |
| Entity filings (LLC/Corp/DBA) | LARA — Corporations Division | LARA Corporations Division |
| Occupational licenses | LARA — Bureau of Professional Licensing | LARA BPL |
| Sales/use/withholding tax | Michigan Department of Treasury | Michigan Treasury — Business Taxes and MTO |
| Unemployment Insurance | Michigan UIA | UIA |
| Workers’ comp rules | Workers’ Disability Compensation Agency | WDCA |
| Liquor licensing | MLCC | MLCC — Licensing |
| City contractor certifications | Detroit CRIO | Detroit CRIO |
| Grants and local help | Motor City Match; Detroit Means Business | Motor City Match; Detroit Means Business |
| Free advising | Michigan SBDC | Michigan SBDC |
What to do if this doesn’t work:
- If a link changes or a portal is down, go to the agency’s main homepage and navigate by department name. Avoid third-party sites for forms; always use the official site.
- If you need hands-on help, book SBDC or Detroit Means Business office hours. They can escalate or clarify with the agency.
Detroit grants, incentives, and certifications
- Motor City Match: Cash grants up to $100,000 for eligible brick-and-mortar projects, plus design and technical assistance. Source: Motor City Match (DEGC program). Review program rules, match requirements, and timelines on the official site.
- Detroit CRIO business certifications: Detroit-Based Business (DBB), Detroit Headquartered Business (DHB), Detroit Resident Business (DRB), Micro/Small Business Enterprise. May provide preference in City contracting. Source: Detroit CRIO.
- State/federal certifications (DBE, WOSB, SDVOSB): Useful for contracting beyond Detroit. See MDOT DBE and SBA certification pages.
What to do if this doesn’t work:
- If your business is not a fit for Motor City Match, look for façade grants, microloans, or corridor-specific programs posted on Detroit Means Business.
- Use the SBDC capital advisors for loan-readiness and to compare CDFI lenders.
Step-by-step examples (Detroit)
Here are three common Detroit business paths, with the most critical action first.
Table: Step sequences (condensed)
| Business type | First action | Next crucial steps | Final steps |
|---|---|---|---|
| Retail shop | Zoning verification at BSEED | Entity + EIN + MTO sales tax; Occupancy verified | Apply Detroit license; set up POS; mark renewals |
| Restaurant | Zoning + architect consult | Health plan review; building permits; hood/suppression | Inspections; Occupancy; Health license; Detroit license |
| Food truck | Secure commissary | Health mobile app and inspection; vehicle compliance | Detroit approvals for operating spots; renewals |
What to do if this doesn’t work:
- If your first action yields a “no,” pivot to a different space or model (e.g., retail showroom + e-commerce, or a shared kitchen before a full restaurant).
- Keep a written checklist and meet weekly with an advisor (SBDC or mentor) to unblock issues early.
Detroit-specific FAQs (with sources)
- Do I need a Detroit business license for an online-only store shipping from my home in Detroit?
- It depends on activity at the home and zoning rules. Purely online with no on-site customers may be treated differently than a home storefront. Start with BSEED.
- Is there a statewide Michigan business license?
- No. Michigan does not require a general statewide license. You register your entity with LARA and taxes with Treasury. Some professions have State licenses. Source: LARA — Corporations Division and LARA — BPL.
- How much is the Michigan sales tax license?
- Generally $0 to register. Source: Michigan Treasury — Business Taxes.
- What are Detroit’s city income tax rates?
- Verify the current rates on the State’s city tax page. Historically: Residents 2.4%, Nonresidents 1.2%, Corporations 2.0%. Source: Michigan Department of Treasury — City Income Tax.
- Do I need Health Department approval to sell packaged snacks?
- If you sell only prepackaged, non-potentially hazardous foods from licensed sources, you may not need a food service license but check with Detroit Health. If you prepare/open food, you likely need a license. Source: Detroit Health — Food Safety.
- Can I open before all inspections are done?
- No. Operating without required occupancy, health licensing, or fire compliance can lead to shutdowns and fines. Check your specific checklist with BSEED and Health. Source: BSEED and Detroit Health.
- I have a State electrician license. Do I still need Detroit permits?
- Yes. Trade work in Detroit requires city permits and inspections, even if you hold a State license. Source: BSEED — Permits.
- Is a Certificate of Occupancy required for a new retail tenant?
- Typically yes, and it must reflect your use. If the prior use matches yours and the Certificate is valid, you may only need verification. Source: BSEED.
- What insurance do I need?
- Requirements vary. Food trucks and restaurants often need general liability, auto (if applicable), workers’ comp, and sometimes liquor liability. Your insurer can confirm. Workers’ comp rules: WDCA.
- Where can I get no-cost help to navigate this?
- Michigan SBDC and Detroit Means Business provide free advising, workshops, and referrals. Motor City Match offers technical assistance tied to its program: Motor City Match.
What to bring when you apply (document checklist)
Bring these to avoid back-and-forth:
- Government ID and entity documents (articles/operating agreement, or DBA proof for sole prop).
- EIN confirmation and MTO registration letter (sales tax/withholding if applicable).
- Lease, deed, or landlord letter; proof of Certificate of Occupancy/Compliance for your use.
- Floor plan and site plan; for food, menu and equipment specs.
- Proof of insurance as required (general liability; workers’ comp if you have employees).
- Any State or federal licenses (LARA trade licenses, MLCC, etc.).
What to do if this doesn’t work:
- If you’re missing something, ask the reviewer for a written “deficiency list” with a resubmission path and deadline.
- If timing is tight, ask which items can be reviewed in parallel so you don’t lose your place in line.
Add-on permits and approvals you might need
- Sign permits for exterior signage: BSEED (Permits).
- Sidewalk café or outdoor seating (if applicable): check with BSEED and the City for right-of-way approvals.
- Special events or temporary uses: City permits may be required depending on location and size.
- Alarm, elevator, boiler: inspections and certifications if your building includes these systems.
What to do if this doesn’t work:
- If you can’t find the correct special permit, bring your plan to the BSEED counter and ask which department owns it and how far in advance to apply.
Keep good records (this saves you later)
- Keep digital copies (PDF) of every permit, inspection sign-off, certificate, and license in one folder.
- Label files with dates and the agency name.
- For each inspection, keep the punch list and the “after” photos in the same folder; it helps on renewals and sales.
What to do if this doesn’t work:
- If you’ve lost documents, many agencies allow you to request copies. Start with the department page for contact instructions (BSEED, Health, LARA).
Accessibility: language and accommodations
- Detroit agencies provide reasonable accommodations and may offer translation/interpretation on request. Ask when you book appointments.
- Immigrant entrepreneurs can get city navigation help at: Detroit Office of Immigrant Affairs.
What to do if this doesn’t work:
- If you can’t get language support promptly, bring a trusted interpreter and ask for written follow-up to verify you got the key details right.
Table: Detroit compliance calendar template
Use this to create your own schedule.
| Item | Where to verify | Your date |
|---|---|---|
| Detroit business license renewal | BSEED | |
| Health license renewal (if food) | Detroit Health | |
| Fire/suppression service | Fire vendor + Fire Dept | |
| Sales tax filing (monthly/quarterly/annual) | MTO | |
| Withholding/UI returns | MTO + UIA | |
| LARA annual report | LARA Corporations Division | |
| Insurance renewal | Your carrier | |
| Sign permit renewal (if any) | BSEED |
What if you’re in a hurry?
- Pick a location with an existing Certificate of Occupancy matching your use; avoid change-of-use.
- Keep your menu simple at first (food) to reduce plan review complexity.
- Submit fully complete packets; partial filings lose weeks.
- Book inspections early and bundle them when allowed.
What to do if this doesn’t work:
- Consider a phased launch (e.g., e-commerce or pop-ups) while you finish the full build-out and licensing.
- Ask agencies for the earliest permissible partial operations (many will say no; get answers in writing).
About This Guide
This guide focuses on Detroit, Michigan business licensing and related State registrations. It links directly to official City and State sources or well-established organizations. Every process, eligibility rule, and cost should be verified on the official websites before you apply because fees, forms, and policies change. Sources were reviewed against public information available through September 2025.
Key sources cited:
- City of Detroit — Buildings, Safety Engineering, and Environmental Department (BSEED) — Licensing, permits, zoning, occupancy, inspections.
- Detroit Health Department — Food Safety — Food facility licenses, plan review, inspections.
- Michigan Department of Treasury — Business Taxes and MTO — Sales/use/withholding registration; city income tax administration.
- LARA — Corporations Division and LARA — Bureau of Professional Licensing — Entity filings and occupational licensing.
- Michigan Liquor Control Commission (MLCC) — Alcohol licensing.
- Michigan UIA and WDCA — Employer registrations and workers’ comp rules.
- Motor City Match, Detroit Means Business, Michigan SBDC — Grants, local assistance, and advising.
Disclaimer
This is general information, not legal, tax, or financial advice. Program details, fees, deadlines, eligibility rules, and links can change at any time. Always verify the current requirements directly with the City of Detroit, the State of Michigan, and the relevant agencies using the official sources linked in this guide. If you have questions about your specific situation, consult the appropriate agency or a qualified professional.