Business Formation

Do You Need a Business License in Michigan?

Written by Dane Janas, EA — Founder, Portside Tax & Accounting

October 7, 2026 1 min read
Do You Need a Business License in Michigan?
In this article
  1. Form and register your business
  2. Sales tax and employer registrations
  3. Occupational and local licenses
  4. How Portside can help

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.

Form and register your business

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.

Sales tax and employer registrations

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.

Occupational and local licenses

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.

How Portside can help

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.

About the Author

Dane Janas, EA

Dane Janas, EA

Dane Janas, EA is an IRS-Enrolled Agent and the founder of Portside Tax + Accounting, a fully remote firm serving individuals, small businesses, nonprofits, and entrepreneurs nationwide. With more than 12 years of experience across tax preparation, bookkeeping, payroll, multistate compliance, S corporations, LLCs, and 990-series filings, Dane has worked in traditional public accounting, in-house finance roles, and as an entrepreneur, and he has led remote teams of tax professionals along the way. He is an IRS-licensed Enrolled Agent and Quickbooks ProAdvisor. Dane writes to turn confusing tax and accounting topics into clear, practical guidance, so readers can make confident decisions about their money and their business. Based in coastal North Carolina, he is originally from Pennsylvania.

Read more about Dane

Additional Resources

For the most current tax information and regulations, visit the official IRS website or consult with a qualified tax professional.

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