Michigan Sales, Use and Withholding Tax Information

Michigan Employment/Sales Tax Registration

Will I need a sales tax license?
How will state & local income taxes affect my business?
What is the Michigan Business Tax (Formerly SBT) and what will it mean to my business?

At Michigan Incorporation Company we have years of experience specializing in a wide variety of state and local tax issues affecting new and existing businesses. We are a one stop shop for Michigan business. Contact us today and let’s get your business started in Michigan.

Will I need a sales tax license?

If you plan on being in the business of making sales of tangible personal property to consumers then generally yes you will have to collect sales tax from your customers and then remit the tax to the state of Michigan. Even those who will be providing services may have to collect sales tax depending on the situation. Let Michigan Incorporation Company help you, use our experience to help successfully navigate your business through this sometimes tricky area. We also provide a Use tax check.

If you plan on selling tangible goods to the final consumer in the state of Michigan than yes you will need to register for a Sales Tax License. Also if you plan on providing an intangible service you must still charge sales tax on any tangible goods related to the service. For example a quick lube oil shop changes your oil and gives you a bill for not only performing the oil change which is a service not subject to sales tax, but they also charge you for the oil and the filter used in your automobile which are tangible items and you are the final consumer which requires the shop to collect sales tax from you for those items. To further the example, say you’re the owner of the quick lube and you are buying more oil and filters to install on you customers vehicles your suppliers would not charge you sales tax on those items as you would not be the final consumer. Contact us now to get started.

What about state & local income taxes?

If you plan on having employees you will have to register to withhold Michigan income tax from their wages for remittal to the state, and depending on your locality you may also have to withhold local income tax from employee’s wages. Contact us today to find out about our convenient one stop IRS, state, and local tax registration packages.

Your business could also be liable for the state’s business tax (formally SBT) and some localities do impose a corporate or business income tax of their own. Our state specific packages include a tax liability check and registration.

As does the IRS the state of Michigan requires employers to register and pay into the state’s unemployment insurance program. This registration is included in our state specific packages.

One of the best ways to become successful is to delegate your workload as it increases. Sometimes delegation of duties will involve hiring employees and or sub contractors to do certain tasks. Michigan Incorporation Company can help with a full review of what State and local taxes could possibly affect your business in these situations. Contact us today to find out about our convenient one stop IRS, state, and local tax registration packages.

Will I be required to pay myself as an employee?

Business’s formed as corporations will typically be required to pay an owner a portion as an employee for services rendered by the owner to the company. This means that the company will have to register for various employer taxes discussed on this page and elsewhere on this site. Call today and inquire about our tax liability check and registration packages.

What is the Michigan Business Tax (Formerly SBT) and what will it mean to my business?

The Michigan Business Tax (MBT), which was signed into law by Governor Jennifer M. Granholm July 12, 2007, imposes a 4.95% business income tax and a modified gross receipts tax at the rate of 0.8%. The MBT replaces the Single Business Tax, effective January 1, 2008.Generaly only businesses with Michigan gross receipts of over $350,000.00 in a year are affected by this tax.

On December 4, 2007, Governor Jennifer M. Granholm signed Public Act 145 of 2007 amending the MBT. The primary purpose of PA 145 was to institute an MBT surcharge of 21.99% of the total of the 1st two component taxes.