As a business owner, you might have come to this terms. Having lots of plans and goals that seem not easy to achieve.
Each time you try to accomplish specific goals and objectives, several more seem to appear on the desk to do next.
You can checklist most of these things to determine the legal structure of your business. It is another important factor to consider. But when it comes to operating a small business in Michigan, it is essential to prioritize getting your business license.
Michigan business license and permits are required for a specific type of business and some kind of certification. There is no generic business license in Michigan
Meanwhile, in this article, we’ll go over it, if or not you need a business license, how to get a Michigan business license and permit, How much is a small business license in Michigan, what licenses do I need to open a business in sterling heights Michigan how much is Business License, What are the types of business licenses in the state of Michigan.
Does Michigan require a Business License?
Michigan does not have a general business license. But you may be required to license your business, depending on your:
- Professions and occupations
- Business location
- Company and services
Most services may require that in addition to your Michigan business license, you can register with the link. www.michigan.govt/statelicensesearch.
Whether or not you require a business license, it still can be beneficial when laying a foundation for a flourishing business in Michigan. Securing your license and permit can assist in the following ways:
- Tell your customers how serious you’re with your business (and the job they hire you to do)
- To Secure any type of small business loans or financing
- It will aid your decision to open a new location
- Meet requirements held by landlords for renting property
Now that you have understood how helpful it is to acquire your business license, we’ll guide you through how to get it.
How to Get Michigan Business Permit and License
1. Apply for Employee Identification Number (EIN):
An Employee Identification Number (EIN) identifies the business for federal and state tax reasons. (EIN) is a free service issued by the Internal Revenue Service (IRS).
Sole proprietorships without employees may use the owner’s social security number for tax purposes, (EIN) is not required, but a sole proprietor without employees may apply or obtain an (EIN) as an alternative to using a social security number especially since using a social security’s number could enlarge the risk of identity theft.
2. Register with your local County Clerk’s office:
Like we said earlier, there’s no general license to do business in Michigan, the laws vary, depending on your business domain. Every city’s county clerk office will determine what types of permits you’ll need and the procedure for your company (and its services) to register for a business license.
3. Business License Can Apply Via Phone or Mail
Your local government will determine how you will apply. Most cities will indicate if to apply online via their linked pages or mail.
Some cities may give options of mailing your application and paying by cash or check order; others may give their payment online but will charge you a processing fee for the license you require.
4. Check Your License Expiration Time
Your license expiration depends on which city you apply for. Make sure you check and read carefully, and if your license is in one of the cities that require renewal every year, take note on your calendar, to have enough time to renew your license the following year.
However, some cities require only one application or fee to date.
How much is a small business license in Michigan?
There are no specific prices for your license, it depends on:
- What you are doing
- Where you are living
Every city has its separate requirements for the business license if any is required, and the laws vary by city.
For instance, in Detroit, each profession with its fee for a business license. In Grand Rapids, each occupation does not only need a different renewal fee but also a different business license fee. The renewal is as per the publication date. Sterling Heights only need or charges just a one-time fee of $50 for a business license.
Each city with there different criteria for when your business license expires. For instance, in one city, renewal may be required after April 30, while another city may require renewal after June 30.
Paying attention to detail can’t be overstated, we recommend you learn to the checklist for a later purpose.
What License Enables You Start a Business in Michigan?
You can run any type of business or open any sort of business, providing that you have an idea and plans to start.
All the businesses operating in sterling heights, however, are required to register for a license, all you will do is to go to the city of Sterling Heights’ Business and License page to apply for a License. Any questions including those who are operating a business from home can be answered by calling the municipal office at 586-446-2489.
According to Ordinance #471, all businesses operating in the city of Sterling Heights are required to get an annual Business License with the City Clerk. Once the application is completed, registration fee and required documents are received, a business license will be issued, for the current year.
Subsequent expiration the following year on April 30, the City Clerk’s office will send a notification message to every registered business for the renewal of their license.
Meanwhile, in 2021 all businesses will re-apply as a new business as we’ll transit to a new software system. With this, we can note that there is no specific price to get Sterling Heights Michigan business license.
What are the Types of Business License in Michigan?
General Business License
As we said earlier, there is no general business license in the state of Michigan, however, some cities require businesses to be licensed to operate. Rules for business registration differ based on where you do your business and what type of trade you undertake. Here are some cities with their local requirements:
Detroit –To operate a business in Detroit, a certificate of occupancy must be obtained is from the zoning division before you can operate your business out of the building. You can apply for a business license from the Business License Center once it has been approved.
Grand Rapids – These cities required business licenses for certain businesses such as home-based businesses, food trucks, street vendors, dance halls, and more.
Warren – most businesses are been licensed by Warren’s city. All you need to do is to check if your profession is listed as one on their business license page.
Sterling Heights – All businesses operating in Sterling Heights are required to register with the City Clerk. For any type of business, you are operating you can go to the city of sterling heights’ Business and License page to apply for your license.
Lansing – This City Clerk’s Office offers business licenses for entities operating massage therapists, health clubs, auctioneers, street vendors, and others.
Building & Zoning Permits
Zoning – Depending on the location of the business, it’s valuable to verify if the business needs an occupancy permit or has specific zoning rules to follow. Depending on city rules, home-based businesses may require to apply for a home occupation permit.
Building Permit – Building permits may be required from the city or county building and planning department if there is any construction or renovations to a facility.
Signage Permit – Some cities required permits before adding signage.
Michigan Sales Tax License
Retailers & wholesalers selling tangible personal property, certain contractors, and certain operations in Michigan are required to register for a Sales Tax License (also known as Sales Tax Permit) from the Michigan Department of Treasury.
Certificate of Exemption
Businesses that buy merchandise to resell will always want to obtain a Michigan Certificate of Exemption to avoid paying sales tax on the goods they resell to customers.
Employer Identification Number (EIN)
Many businesses will be required by the Internal Revenue Service (IRS) for an EIN (which is known as a FEIN, Federal Employer Identification Number, or Federal Tax ID Number). The EIN is the business equivalent of a Social Security Number for an individual. Corporations, Limited Liability Companies, Partnerships, and Sole Proprietorships with employees may require registering for one.
It’s a free service and it only takes a few minutes to get.
Assumed Name Registration
While not a license, it’s common for Sole Proprietorships and Partnerships operating under a business name that is different from the full name of the owner(s) to register for an Assumed Name Certificate (also known as a Doing Business As or DBA) with the County Clerk’s Office in the county where the business is located.
Our recommended steps above are to make your license process a little easier and faster, so you can go back to your checklist for more accomplishment. Good luck.