Steps to Starting a Small Business in Michigan
- 1). File a name for your business. If you are forming a sole proprietorship or a general partnership and will do business under a name different from the owner, file an Assumed Name Certificate with the county clerk where your business will operate. If you are not ready to use the name just yet, you can file an Application For Reservation of Name, form BCS/CD-540. A $10 fee applies for corporations and limited partnerships and $25 for limited liability companies. The name will be reserved for four or six months, depending on the type of business you are forming, or until you turn in other business documents that require you to use a business name. Ensure the name does not violate the list of restricted words for business names.
- 2). Register your business with the Department of Energy, Labor and Economic Growth. Find forms particular to the type of business you want to start, such as forms to register your LLC (limited liability company), LLP (limited liability partnership) or corporation. Visit the particular pages applicable to your type of business in order to find specific information for registering your business with the Department of Energy, Labor and Growth. Fees apply to registration. If you are starting a sole proprietorship, you do not need to register your business with the state.
- 3). Apply for an Employer Identification Number from the Internal Revenue Service online. You can also file form SS-4 to get your business's EIN. This number is used to identify your business on tax forms.
- 4). Obtain any necessary state or local permits to operate your business. Visit the Licensing page of the Start a Business in Michigan website from the Michigan Economic Development Corporation to find any state licenses your business may need to apply for. Contact your local business licensing authorities to find out about local permits or licenses you may need.
- 5). Register for Michigan state taxes by using the e-Registration system from the Department of Energy, Labor and Economic growth. Visit the Michigan Taxes division of the Michigan Department of the Treasury to learn more about Michigan state taxes, including a recorded webinar on business taxes. Contact your local tax authorities for information about registering your business to pay local taxes.
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