Do You Need a Business License in Michigan?

Quick answer: Michigan does not have a general statewide business license. Whether you need one depends on your industry and location: some occupations are licensed by the state, and cities and counties may require local permits.

LLCs and corporations are formed with the Michigan Department of Licensing and Regulatory Affairs (LARA). Sole proprietors using a name other than their own generally file an assumed name certificate with the county clerk. See our guide to what an LLC is if you are weighing your options.

Businesses selling taxable goods generally need a sales tax license from the Michigan Department of Treasury, and employers must register for withholding and unemployment insurance. Some cities, such as Detroit, impose their own income taxes. For federal purposes, an EIN is free at IRS.gov. Our guide to charging sales tax in different states explains how obligations vary.

Many occupations, including builders, cosmetologists, health professionals and real estate agents, are licensed through LARA. Local governments may also require zoning approval, home occupation permits or other registrations, so check with your city or township before you open.

We help Michigan business owners choose an entity, set up bookkeeping and payroll, and stay current on federal and state tax filings. Requirements change, so confirm details with LARA, the Department of Treasury and your local government. Learn more about our business formation support.