Starting a business is a complex process that involves planning, paperwork, and registration to make it happen. In the United States, each state has its own rules to carry out this process and today we want to talk about how to get a business license in michigan. Read on to learn what you need.
Do I need a business license in Michigan?
Actually, in the state of Michigan, a general business license is not required for your business to operate. However, other types of licenses and permits are required. Of these, the main one is the seller's permit that all businesses that sell tangible goods must obtain.
If you have been attentive to the publications that we have made in Hispanic Entrepreneurs, you will have noticed that this also happens in other states. So it is important to verify which licenses you need according to your location.
On the other hand, although a general license is not required at the state level, counties and municipalities may require one. A reference case is the city of Detroit, in which it is necessary to obtain a license of this type.
In addition, there are certain business activities that are required by the state to have a license.
Licenses and permits are the documents that allow your company or business to operate legally. These indicate that they are complying with all the rules to carry out the activity to which they are dedicated.
How to obtain a business license in Michigan?
Now, although a business license is not required in Michigan, there are other permits that you must obtain for your business. Either by the state, local or federal level. Without these permits and licenses you will not be able to operate, so get down to work to find out what you need.
Find out what permits and licenses you need
It is important that you find out what other Michigan business licenses you need for your business. In the state there are a number of occupations and industries that require a specific license or permit.
These include those related to health, food, construction, alcohol, accommodation, accounting, among others. For example, if you plan to open a restaurant, you will need a food license and an alcohol license if you want to serve alcoholic beverages.
You can find out which industries need a license at the michigan state website.
Applies for professional licenses
Likewise, there are professions that are regulated, such as health care, construction or accounting. If you are involved in any of these, you will need to obtain additional licenses or permits.
Requirements vary by profession and may include proof of education, experience, and passing tests.
The body responsible for granting and regulating these licenses is the Office of Professional Licensing. You can find out more about it on their website.
Get seller's permission
This is the sales tax permit and is processed through the State Treasury Office. When talking about the Michigan business license application, it is to this permit that most companies must apply.
A seller's permit is required for all businesses selling tangible property within the state.
Applies for local licenses
Counties and municipalities also require licenses and permits to operate on their territory. So you should investigate which ones are necessary depending on the location of your business.
There are some locations that do require a general business license.
Applies for federal licenses
Depending on the industry your business is in, you may also need a federal license.
The regulated list in which a federal business license must be obtained includes the following industries: Agriculture, Alcoholic Beverages, Aviation, Firearms, Ammunition and Explosives, Fish and Wildlife, Commercial Fishing, Shipping, Mining and Drilling, Nuclear Power , radio and television broadcasting, transport and logistics.
What other permits does my business need to operate in Michigan?
Other than the above, zoning, health, environmental, building and signage permits may also be required; as well as the sales tax collection permit.
Is registering a business the same as obtaining a business license in Michigan?
There are people who confuse the registration of a company with the commercial license, but it must be clarified that they are not the same and require different procedures.
The registration of the company is what allows the state to know that it exists. As well as the basic information of your business. From the registration of the business the state will know how to collect the taxes. Here you will find How to Register an LLC in Michigan.
Instead, the license is the document that grants the right to carry out a specific activity in a locality.
If you are going to open a business in the state you should know how to obtain a business license in Michigan. Without it, you risk fines and sanctions that can lead to the closure of your business.