In this article, we’ll go over whether or not you need a business license, how to get a Michigan state license, how much it will cost, and how your license may be connected to business insurance. We also encourage you to speak with local legal and tax professionals when registering your business.
How Do I Register a Business in Michigan?
1. Register for an Employee Identification Number (EIN).
Depending on how you organize your business (such as an LLC or a corporation), you will need to complete a business application, such as the State of Michigan LLC application. You will also need to obtain an employment identification number1 (EIN) with the Internal Revenue Service (IRS).
If you plan to file taxes as a sole proprietor, you may use your Social Security number instead.
2. Check with your local County Clerk’s office.
Each county clerk’s office will determine which types of permits you’ll need and the process for your individual company (and its trade) to register for a Michigan state license.
Some cities may also have their own requirements. Here are some examples:
Detroit
Head to the Detroit business license center2 to determine if you’ll need a zoning permit. After that, you can apply for a business license specific to your trade or profession.
Grand Rapids
Only certain businesses are required to have licenses in the City of Grand Rapids, such as food trucks, Michigan business owners who work from their homes, street vendors, dance halls, and more.
Go to Grand Rapids’ business licensing page3 to find the requirements for your specific business. If you’re unsure, you can reach the city clerk’s office at 616-456-3016.
Lansing
Depending on your industry, you may need to apply for a business license to operate in Lansing4. For example, if you’re a health club owner, auctioneer, street vendor, or massage therapist, you’ll need a Michigan state license.
Oakland County
For most businesses, an Oakland County business license is not required. You should check with the city or township where your business is located to determine if your small business requires a local license or permit5.
Sterling Heights
No matter what type of Michigan business you plan to run, go to the City of Sterling Heights’ Business and Licensing page6 to apply for a business license. All businesses must register for a license if they operate in Sterling Heights. Any questions, including those regarding home business operations, can be answered by calling the city offices at 586-446-2489.
Warren
Depending on your profession, you’ll be required to have a business license in Warren. You can check if your profession is listed as a required industry on their business licensing page7.
3. Apply for your business license via phone or mail.
Your local municipality will dictate how to apply for licenses in Michigan. Most cities mentioned above will specify whether to apply by mail or online via their linked pages.
Some cities may give only the option of mailing your application and paying by check or money order; others allow you to pay online, but you’ll be charged a processing fee for the license you require.
4. Note how long your Michigan state license will be valid.
Depending on which city you do business in, you may be required to apply and register for a business license every year. However, some cities require only a one-time application and/or fee.
Be sure to read carefully, and if you are in one of the cities requiring an annual business license, mark your calendar, giving yourself enough time for the renewal process8.
How Much Do Licenses in Michigan Cost?
Business license costs can vary depending on where your business is located and what your business does. The Michigan State Business License Search9 can help you determine the type, cost, and other details of the license you may need.
Your city or municipal government may also require certain licenses. It’s a good idea to check the laws and regulations in your area.
Business Insurance: What You Need to Know
Some cities, such as Grand Rapids or Sterling Heights, require current proof of business insurance (which you can obtain with a certificate of liability insurance form) when applying for your license, depending on your profession.
Don’t worry — getting your business insured doesn’t take very long. You can use our free quote comparison tool to determine how much your business insurance policy may cost — we’ll show you options from the best providers that offer affordable coverage.
Get Insured in Under 10 Minutes
Get an affordable and customized policy in just minutes. So you can get back to what matters: Your business.
Here to Help
Starting a small business can be quite a journey. That’s why we have a Resource Center with a wealth of valuable information, articles, and resources to help you stay well-informed every step of the way. We also encourage you to speak with a local tax or legal professional who can advise you about specific requirements you may have when starting your business.
Here are a few more popular articles to help you pave the way for your new venture.
How to Start a Small Business: Our Easy-to-Use Guide
How to Start a Small Business Without Money
10 Resources to Help Launch Your Small Business
References:
(1) Learn more at irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein
(2) Learn more at detroitmi.gov/departments/buildings-safety-engineering-and-environmental-department/bseed-divisions/licensing-and-permits
(3) Learn more at grandrapidsmi.gov/Business/Licensing
(4) Learn more at lansingmi.gov/
(5) Learn more at oakgov.com/business/business-development/business-forward/tools-templates
(6) Learn more at sterlingheights.gov/27/Government
(7) Learn more at cityofwarren.org/departments/city-clerk/business-licenses/
(8) Learn more at upcounsel.com/michigan-llc-renewal-fee
(9) Learn more at michigan.gov/som/government/state-license-search