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STARTING AND OPERATING A BUSINESS IN MICHIGAN Copyright © 2009, Michael D. Jenkins CHAPTER 18
CONTENTS OF THIS CHAPTER:
I. INTRODUCTION I. INTRODUCTION Michigan has a somewhat unusual tax and legal structure under which businesses must operate. Like most states, Michigan imposes a personal income tax, a sales and use tax, various excise taxes, with property taxes imposed at the local level. The state has also adopted a limited liability company (LLC) law, and a limited liability partnership (LLP) law, so that businesses operating in Michigan in LLC or LLP form may obtain the advantages of limited liability, without incorporating or becoming subject to corporate federal income taxation, generally. However, unlike most other states, Michigan has had no income tax or franchise taxes on corporations. Instead, until the end of 2007, it had a unique "single business tax" (SBT) that applied to both corporations and to unincorporated businesses alike. While this tax was somewhat like an income tax, it has also been compared to a "value-added tax," or VAT, like those imposed in Canada and many European countries. This very complex and pervasive tax has long been highly unpopular among businesses, and Michigan enacted legislation in June, 1999, that had been phasing out the SBT entirely over a 23-year period, by gradually decreasing the SBT tax rate. More recently, in 2002, additional legislation provided for complete repeal of the SBT after December 31, 2009, and finally, the Michigan legislature in August of 2006 approved a measure that repealed the SBT entirely, for tax years that began after December 31, 2007. In place of the SBT, Michigan has enacted a new "Michigan Business Tax" (MBT), which is actually two taxes, an income tax and a modified gross receipts tax on businesses that operate in the state. At present, the Michigan economy is very depressed, in terms of the level of unemployment and other economic measures, although the state had made a remarkable recovery from the "Rust Belt" days of the 1980s. However, a continued decline in employment in the U.S. auto industry has kept unemployment rates fairly high and economic growth quite slow in Michigan in recent years, and the recent collapse of the industry has been disastrous for the state. In April, 2009, the state's unemployment rate stood at 12.9%, up dramatically 7.9% a year earlier, and by far the highest jobless rate of any state. This compares to a national unemployment rate of 8.9% for April, 2009, and the recent (June 1, 2009) filing of bankruptcy by General Motors will cause another huge jump in unemployment in Michigan. Wayne County, Michigan, where Detroit is located, lost more people from the beginning of 2005 to the end of 2006 than any U.S. county except the four parishes and counties in Louisiana and Mississippi devastated by Hurricane Katrina, according to Census figures released in March, 2007. Since 2001, the state of Michigan had lost more jobs than any other state in the Union. To view the latest federal Bureau of Labor Statistics unemployment rate data for Michigan or any other state, visit the BLS website. II. LEGAL ENTITIES -- FILING FEES AND REPORTING REQUIREMENTS. (a) In General. A business that operates in Michigan can operate as a sole proprietorship, a general or limited partnership, a corporation, or a limited liability company. However, unlike most other states, Michigan taxes the income of S corporations, under its "single business tax," which is the Michigan equivalent of a corporation income tax, although it is more in the nature of a "value-added" tax, and may be imposed even when a business has no profits. Michigan also provides for limited liability partnerships, in which no partner is liable for debts of the partnership, in general, as in the case of a corporation or LLC, but with fewer legal formalities than are required for either a corporation or an LLC. Each of the above entities is discussed below, along with the basic requirements for forming such an entity and any general ongoing (non-tax) reporting requirements that are applicable to it. The tax treatment of each form of legal entity is discussed in Section IV below. (b) Sole Proprietorships. In general, sole proprietorships in Michigan can be established with no formalities. However, as discussed in Section IV(b), it will generally be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, as well. Note that the Michigan Single Business Tax (SBT) is repealed after December 31, 2007, and has been replaced by the new Michigan Business Tax (MBT), as is discussed in Section IV(a). The MBT applies to all businesses, including sole proprietorships, although there is a complete exemption for businesses whose gross receipts allocated or apportioned to Michigan are less than $350,000. In addition to paying the Michigan Business Tax, your income as a sole proprietor is subject to Michigan personal income tax. No separate tax form filing is required, generally, for a sole proprietorship, under the Michigan income tax law. Instead, as with the Schedule C on your federal Form 1040, you simply report the net income or loss from your sole proprietorship on your state personal income tax return. See Section IV(c) for more information on the Michigan income tax and filing requirements for individuals. Operating as a sole proprietor in Michigan is generally much simpler than as any other kind of business legal entity. As a sole proprietor, if you have no employees, you are not required to pay any unemployment taxes, withhold any federal or state income tax from wages, or obtain workers' compensation coverage for yourself. However, if your sole proprietorship operates under an assumed or fictitious business name (DBA), it will be required to register the name with the county or counties where you do business, as discussed in Section IV(g). (c) Partnerships. Michigan's partnership laws allow creation of either a general partnership, in which all partners are liable for the debts of the business, or a limited partnership, in which only the general partners are liable for debts, while the liability of limited partners is limited to the amount they have invested, in general. State law also allows for the creation of a limited liability partnership, in which no partner has personal liability (subject to certain exceptions) and for a limited liability limited partnership, which is a limited partnership that also elects limited liability partnership status. Unlike most states, which do not tax the income of a partnership at the partnership level, Michigan has long imposed a tax, based partly on income, directly on the partnership. The tax imposed was the Single Business Tax (SBT), which, while not an income tax, was partly based on taxable income, as a starting point. The SBT has been repealed for periods after December 31, 2007, and has been replaced by the Michigan Business Tax (MBT), composed of an income tax and a modified gross receipts tax. In addition to paying the MBT at the partnership level, each partner in a partnership is required to report his or her share of the partnership's income or loss on his or her Michigan personal income tax return. However, the partnership is not required to file an income tax information return. For more on Michigan partnership tax requirements, see Section IV(c). A partnership agreement, for any type of partnership, should spell out in considerable detail such matters as the following:
As a rule, general partnerships in Michigan can be formed with no formalities, although it is highly advisable to have a written partnership agreement. However, as discussed in Section IV(b), it will generally be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, for any type of partnership, including general or limited partnerships, or limited liability partnerships. In addition, if a general partnership operates under an assumed name, it is required to file an assumed name registration in each county where it does business. A limited partnership, in which there is at least one general partner (who is liable for partnership debts) and at least one limited partner (who is not liable for partnership debts), may also be formed under Michigan law. Unlike a general partnership, a limited partnership must generally have a written partnership agreement, and must file a certificate of limited partnership with the Corporation Division of the Michigan Department of Department of Labor and Economic Growth, together with a filing fee of $10. Foreign limited partnerships must also register before being allowed to do business in Michigan, and must pay a registration fee of $10. As several other states have done, Michigan now allows a limited partnership to also become a limited liability partnership -- a limited liability limited partnership, or LLLP. An LLLP is a regular limited partnership that has elected LLP status, so that the general partners in the LLLP are given the same liability protection as partners in an LLP. For information on limited partnership filing requirements, see the contact information for the offices of the Corporation Division of the Michigan Department of Labor and Economic Growth, listed in Section VI(a). LIMITED LIABILITY PARTNERSHIPS Limited liability partnerships (LLP's) are a new form of partnership permitted under the laws of Michigan. Like an LLC, an LLP provides limited liability for its owners, while retaining the tax advantages of a partnership for federal income tax purposes. There is generally no state tax advantage of being a partnership in Michigan, since the Michigan Single Business Tax (SBT) or the Michigan Business Tax (MBT) that replaced the SBT in 2008 applies equally to corporations and unincorporated businesses alike and since the partners must also each pay state income tax on their allocable share of the LLP's taxable income. Unlike an LLC, an LLP typically operates like a regular partnership, and is not required to file articles of organization. A general partnership or the general partners in a limited partnership can achieve a degree of limited liability by simply registering the partnership with the state as an LLP. In Michigan, an LLP does not provide the same liability protection as a corporation or LLC, as it only protects partners from liabilities that arise from the negligence or malpractice of another partner, not from a partner's own misconduct, malpractice, errors, or omissions, or from trade or contractual debts or other liabilities of the partnership that may arise. Thus, LLP's are mainly utilized by professional partnerships, as Michigan's LLP law provides considerably less liability protection than the LLP laws in most other states. The Michigan LLP law also provides that a partner in an LLP is not relieved from liability for tax obligations of the partnership. To form an LLP in Michigan, you must register your partnership as an LLP and pay a filing fee of $100 to the Corporation Division of the Michigan Department of Labor and Economic Growth. Both general partnerships and limited partnerships are allowed to register as LLP's. Foreign LLP's, those created under the laws of another state, must also register with the Corporation Division of the Michigan Department of Labor and Economic Growth and pay a fee of $100. Every LLP doing business in Michigan, including both domestic and foreign LLP's, must renew its registration annually, on the anniversary date of its initial LLP registration in Michigan, and pay an annual renewal fee of $100. Note that one potential drawback of LLP's, if you will do business in other states besides Michigan, is that some states may not treat your LLP the same as would Michigan, so that you may not enjoy limited liability with regard to creditors of the LLP if you do business in such a state. Such other states may simply treat your LLP like an ordinary general partnership, with no limitation of liability. For example, California and New York only recognize certain types of professional partnerships as LLP's. For more information on LLP registration and reporting requirements, see the contact information for the offices of the Corporation Division of the Michigan Department of Labor and Economic Growth, listed in Section VI(a). (d) Corporations.
To form a corporation in Michigan, you must file articles of
incorporation with the Corporation Division of the Michigan
Department of Labor and Economic Growth and pay a filing fee
of $10, plus an additional fee based on the authorized
capital stock of the corporation, which is computed as follows:
A foreign corporation (one formed under the laws of another state or a foreign country), must obtain a certificate of authority before it may legally conduct business in Michigan, by filing an application for a certificate of authority and paying a filing fee of $10, plus a $50 fee based on the assumption that it has 60,000 authorized shares of stock. Both domestic and foreign corporations may have to pay additional fees subsequently, if they increase the number of shares of authorized stock. In the case of a foreign corporation that increases its authorized shares, the number of shares deemed to be attributable to its Michigan business is a fraction based on the total shares multiplied by the apportionment percentage in its most recent single business tax report. For more information on filing articles of incorporation or applying for a certificate of authority to do business in Michigan, see the contact information for the offices of the Corporation Division, listed in Section VI(a). In addition, once your corporation is formed, it will be required to file annual reports each May 15th and pay a report filing fee of $25. The reports are to be filed with the Corporation Division of the Michigan Department of Labor and Economic Growth each year. This fee was formerly $15 and was scheduled to revert to $15 for reports due after September 30, 2007. However, the $25 fee level has been extended until October 1, 2012. Failure to file an annual report on a timely basis could result in suspension or revocation of your corporation's charter. In addition to paying federal income taxes on its income, a corporation that does business in Michigan must also file Single Business Tax (SBT) returns with the state or, for tax years beginning in 2008 or later, a Michigan Business Tax (MBT) return. There is no state corporate income tax, as such, in Michigan, although the SBT and MBT are both somewhat like an income tax. See Section IV(a) for a discussion of MBT tax rates and tax return filing requirements. The SBT has been repealed for tax years beginning after December 31, 2007. For tax forms and more information on the SBT and other business taxes in Michigan, see the contact information for the offices of the Michigan Department of Treasury, listed in Section VI(a). (e) S Corporations. An S corporation is simply a regular corporation that has elected, for federal or state income tax purposes, or for both, to be taxed somewhat like a partnership, with its income, losses and tax credits flowing through to its owners, who report such income, losses, or credits on their individual tax returns. While Michigan does not have a corporate income tax, the income of an S corporation was used as the starting point for the Michigan Single Business Tax (SBT), which was imposed on S corporations as well as on any other corporation or any unincorporated business. The SBT is replaced by the Michigan Business Tax, which also applies to S corporations, in 2008 and thereafter. In addition, each shareholder of the S corporation reports his or her share of the S corporation's income or loss on his or her individual Michigan personal income tax return. (f) Limited Liability Companies. Michigan, like every other state in the U.S., has adopted a limited liability company (LLC) law. Thus, in addition to the traditional choices of a sole proprietorship, partnership, or corporation, a business that operates in Michigan may also choose to operate in the form of an LLC. In most states, LLC's are very attractive entities for many small businesses, in that they offer the same protection as a corporation from creditors for debts of the business, while offering much of the flexibility plus the flow-through tax treatment of a partnership for federal tax purposes. While an LLC doing business in Michigan has federal income tax advantages, it was fully subject to the Michigan SBT or, after 2007, is subject to the Michigan Business Tax (MBT), and thus an LLC offers no significant state tax advantage in Michigan. See Section IV(c) for a discussion of the tax treatment of LLC's under Michigan tax laws. To form an LLC under the laws of Michigan, one or more persons who will be members of the LLC must file articles of organization with the Corporation Division of the Michigan Department of Labor and Economic Growth, which must be accompanied by a filing fee of $50. Michigan's LLC law was amended to recognize the validity of one-member LLC's, in the wake of changes in federal tax regulations that now allow one-member LLC's to be treated as sole proprietorships for federal tax purposes, in 1997 and subsequent years. Foreign LLC's, those formed under the laws of another state, must obtain a certificate of authority to do business in Michigan, by filing an application for a certificate of authority with the Corporation Division and paying a filing fee of $50. In addition to the initial filing fees, an LLC formed in Michigan must subsequently file annual reports and pay an annual report filing fee of $25 with each such annual report, or $75 in the case of a professional LLC. Foreign LLC's are also required to file annual reports and pay the applicable filing fee of $25. All domestic and foreign LLC's must file an annual statement of resident agent and registered office, together with a filing fee, which was increased from $15 to $25 for the period from October 1, 2003 until September 30, 2007, at which time it was to once again be $15. However, the $25 fee has now been extended until October 1, 2012. Michigan Senate Bill 1446 allows for the formation of "low-profit LLC's," if the LLC's purposes are charitable or educational and would not have been formed except to accomplish those charitable or educational purposes (not including political or legislative purposes) and if the production of income or appreciation of property is not a significant purpose of the LLC. The LLC's purposes must be spelled out in its articles of organization and its mame must include the abbreviation "L3C" or "L.3.C." For more information on filing articles of organization for an LLC, see the contact information for the offices of the Corporation Division of the Michigan Department of Labor and Economic Growth, listed in Section VI(a). (a) In General. When acquiring an existing business, there are a number of state legal and tax issues you or, preferably, your business attorney, should attend to before closing the purchase. These include matters such as doing a title search for any real property that is being acquired, checking for any recorded security interests on personal property items, and thoroughly researching county, state, and federal records for any judgment liens, tax liens, or other liens, before property is acquired. You will also benefit from consulting a tax advisor before the agreement of sale is negotiated, in order to seek a structuring of the agreement so that the purchase price is allocated among the assets in a way that favors you. You may be able to obtain considerable tax savings if the purchase price is allocated in a way that gives you the best possible tax results under federal and state income tax laws, and other state tax laws, such as sales/use tax or property tax laws. PLANNING POINT: Depending upon the state (or states) in which the seller's assets are located, you may also have to comply with state bulk sale or bulk transfer laws. You should also obtain tax releases from various state taxing agencies, as discussed below. (b) Bulk Sale Laws. Typical bulk sale laws require either publication of legal notices to all creditors in advance of the sale and recording of such notices in some cases, or maintenance of detailed lists of the property to be transferred, for inspection by the public. Michigan is one of the states that has repealed its bulk sale laws, so you no longer have to be concerned with this requirement when buying a business in Michigan, effective since January 4, 1999. (c) Tax Releases. When you acquire an existing business, you will want to make sure that you do not unwittingly become liable for any unpaid taxes owed by the seller. Typically, to protect yourself, you will need to receive a tax release or releases from various state taxing agencies, for such taxes as sales and use tax, income tax withholding, and state unemployment taxes, in each state in which the seller does business. If you fail to obtain such a release or written statement from the tax agency that the seller is not delinquent on any tax payments, you will be held responsible for such tax if it is not withheld from the purchase price proceeds and paid to the state at the time the sale of the business transpires. In Michigan, the tax laws instead require that a seller file a final sales tax return within 15 days after quitting business and you, as buyer, are responsible for withholding enough of the purchase price to cover any unpaid sales tax liability of the seller, releasing the funds only when the seller provides you with a receipt or certificate from the tax commissioner showing the amount of taxes to be withheld or that all taxes have been paid. If the seller gives you written waiver of confidentiality, the Department of Treasury will notify you in advance of the amount of tax you should withhold, if any. A business owner may request that the Department of Treasury conduct a review of the business tax account for tax clearance purposes. The Department's review will provide the taxpayer with information regarding any outstanding tax liabilities. If there are no outstanding liabilities, the Department will issue a Tax Clearance Certificate stating that no taxes are due. This certificate should be provided by a seller to the buyer of a business. Similar rules apply to all other state taxes administered by the Department of Treasury, including MBT, excise taxes and income tax withholding. In addition, a seller of a business must also file all state unemployment tax returns within 20 days after the sale, and must file Form UIA 1027, Business Transferor's Notice to Transferee of Unemployment Tax Liability and Rate, which the seller must deliver to you at least 2 days before the transfer of the business occurs. You, as buyer, must escrow a sufficient portion of the sales price to cover any such unpaid unemployment tax. By law, the seller must provide a buyer with certain unemployment insurance information at least two days before an offer to purchase is accepted. (d) Unemployment Tax Rating of Seller. In addition to obtaining tax releases, you may find it advantageous to succeed to the seller's unemployment tax experience rating, if the seller has a tax rate lower than you would otherwise obtain as a new business. If you acquire a business, or 75% or more of the assets of an ongoing business, you will automatically succeed to the seller's unemployment tax experience rating, whether you wish to or not. Otherwise, if you acquire part of a business, but less than 75% of all its assets, you have the option of whether or not you will elect to succeed to the seller's rating. In that case, to obtain the seller's favorable experience rating as a successor employer, you will need to apply on a timely basis to the Michigan Unemployment Agency, and make a request that you be treated as a successor employer. Such request must be made within 30 days after the end of the quarter in which the transfer occurred and within 30 days after a request by the Michigan Unemployment Agency, and you and the seller must provide a written agreement to transfer the seller's experience rating to you, as buyer. PLANNING POINT: EXAMPLE: IV. MICHIGAN TAXES AND OTHER GENERAL REQUIREMENTS. (a) In General.
Michigan was formerly known as a high-tax state, but this
perception had changed significantly in recent years, with
cuts in the Single Business Tax to only 1.9% in recent
years, a cut in the already low personal income tax rate
from 4.6% to 3.9%, and drastic cuts in local property taxes
under Proposition A (financed by a 2% rise in the sales tax
rate). In addition, business inventories are exempted from
the personal property tax, the personal property tax on
intangibles was phased out, effective since January 1, 1998,
and the Single Business Tax was repealed for tax years that
begin after December 31, 2007.
A series of personal income tax rate cuts went into effect,
beginning in 1999. The already low 4.2% income tax rate in
2000 was reduced further to 3.9% by July 1, 2004, However,
the state government is currently having a severe financial
crisis, and has more recently switched from tax cutting to
tax increase mode.
In 2007, Governor Granholm and the legislature agreed on
a compromise tax increase plan that increased the personal
income tax rate from 3.9% to 4.35%, effective from October
1, 2007 through September 30, 2011. Each October in 2011
through 2014, the rate will drop by 0.10% and then on
October 1, 2015 will drop back to 3.9% -- in theory.
The Michigan sales and use tax rate is 6%, which is
fairly high, but since Michigan is one of only a few states
in which localities are not allowed to impose sales or
use taxes, the 6% rate is lower than the combined state
and local tax rates in most states that have sales taxes.
On June 17, 1999, the legislature enacted legislation that
began gradually phasing out the Single Business Tax (SBT) over
a 23-year period, by reducing the then-existing 2.3% tax rate by
0.1% each year until it was zero. However, in 2002, the legislature
enacted a total repeal of the SBT, to occur after December 31, 2009
and subsequent legislative action in 2006 and a voter initiative
combined to repeal the SBT even sooner, after December 31, 2007.
Thus, businesses in Michigan generally no longer have to be
concerned with this onerous tax after 2007, except that it still
applied in 2008 to a business on a fiscal year, for the fiscal
year 2007-2008.
Under the Michigan Business Tax Act, signed into law
in July, 2007 by Governor Granholm, the SBT, after its
repeal on December 31, 2007, was replaced on January
1, 2008 by the Michigan Business Tax (MBT). The MBT
is actually two new taxes, a 4.95% Business Income Tax
on corporations and unincorporated businesses (generally
based on federal taxable income, with various adjustments,
including the income that is allocated or apportioned to
Michigan) and a Modified Gross Receipts Tax of 0.8%, which
is based on total gross receipts less purchases from other
firms. The gross receipts tax provisions reduce the tax
base for various types of taxpayers, such as automobile
dealers, construction contractors, self-employed
individuals, partners in partnerships, and members of
limited liability companies.
The MBT has a filing threshold of $350,000 of gross
receipts, which exempts many small businesses. A small
business credit may also reduce the tax liability, on
a sliding scale, of businesses with gross receipts over
$350,000 but less than $700,000.
Both the Business Income Tax and the Modified Gross
Receipts Tax are apportioned so that only Michigan-source
income or gross receipts will be taxed. Various tax credits
are allowed, including a 0.37% credit for compensation
paid in Michigan and an investment credit equal to 2.9% of
the cost of new capital assets located in Michigan. Other
allowable credits include a refundable credit for 35% of
personal property taxes paid on industrial personal property
and a research and development tax credit.
Michigan has repealed the use tax on a wide range of
services, which was to have gone into effect on December 1,
2007. In its place, a 21.99% surcharge has been added to
the MBT for each taxpayer subject to the MBT, other than
financial institutions, on which a 27.7% MBT surcharge was
imposed for 2008 and 23.4% in 2009 and after.
In 2009, all businesses with an annual combined MBT
tax liability reasonably expected to exceed $800 must make
quarterly estimated tax payments and, in most cases, file
a quarterly Form 4548, Michigan Business Tax Return.
The sum of estimated payments must equal at least 85% of
the total liability for the year and the amount of each
quarterly payment must approximate the tax liability incurred
during the period. Quarterly returns are due on the 15th
day of the month following the end of each quarter of the
taxable year or, for a calendar year taxpayer, on April 15,
July 15, October 15, and January 15.
For tax years ending in 2009, no underpayment penalty
will be imposed if at least 85% of the tax is paid in
estimates, as noted above. Also, no penalty will be
imposed if the prior year's MBT liability did not
exceed $20,000 (annualized if the prior year was a
short year) and the taxpayer pays in an amount equal
to 100% of the prior year (annualized) tax in four
equal installments in 2009.
In lieu of filing quarterly MBT returns, taxpayers
may file a monthly Form 160, Combined Return for
Michigan Taxes,, paying the MBT along with
sales and use taxes and withholding taxes in a single
payment with the monthly return each month.
An annual MBT return, Form 4567,
must be filed by the end of the fourth month after the
end of the taxable year -- by April 30, in the case
of a calendar year taxpayer.
For state tax forms and tax information, see the contact
information for the Michigan Department of Treasury in
Section VI(a).
(b) State and Local Licensing.
Nearly any business, operated anywhere in the United States, will
have to have at least one government license of some kind. In
most cases, this will be a local license, issued by your city or
county. Before you open your business, contact your local city
or county hall and find out if your particular business needs
one or more local licenses. Most kinds of local business
licenses are granted upon payment of a fee, with no further
requirements, except possibly for annual or other periodic
renewal fees.
However, if you are engaging in any kind of food business,
you will usually need to also obtain a health department
permit and show that you are in compliance with health
department food-handling requirements. In addition, be
sure to check with an attorney or local government zoning
or planning department officials to determine if your
business will be in compliance with all local zoning
and planning restrictions. If you own or rent any type
of facility, you will generally need fire department
permits, showing that you meet fire safety codes and any
construction or improvements to an existing structure
will usually require a building permit. If you intend to
simply operate your business from your home, you may be
in violation of local zoning requirements, but this is
less likely to be a concern if you don't have clients,
customers, suppliers, or employees coming to your house
on business on a regular basis.
State governments have traditionally required special
licenses for many kinds of professionals, such as physicians,
dentists, lawyers, and accountants. To further protect
consumers, Michigan has expanded the list of occupations
that must be licensed by the state to include many other
occupations. Most state licenses not only require payment
of fees, but are only issued for a given profession or
occupation upon showing that you have completed certain
educational or experience requirements, or passed certain
tests, or some combination of the foregoing.
There is no generic "business license" that must be
obtained from the state of Michigan by a business, unlike
most states. In Michigan, state licenses are only required
for certain specified professions and occupations. The
Department of Labor and Economic Growth, through its
Bureau of Commercial Services, Licensing Division offices,
administers licensing for most kinds of occupations and
professions in the state, including the following:
The following health professions are regulated
and require state licenses:
For help with state licensing and business registration
requirements in Michigan, see the contact information for the
offices of the Licensing Division of the Department of Labor and
Economic Growth, listed in Section VI(a).
Nearly all businesses will need to register with the Michigan
Department of Treasury, on Form 518, Registration for
Michigan Taxes, to register for sales and use tax, MBT,
unemployment tax, and income tax withholding. All of those taxes
except unemployment tax are paid to the Department of Treasury;
state unemployment taxes are paid to the Michigan Unemployment
Agency.
(c) Income and Franchise Taxes.
Michigan has both an individual income tax and a business
entity tax on all businesses that is both an income tax and a
gross receipts tax, the Michigan Business Tax,
although many small businesses are exempted from this tax. The
Michigan Single Business Tax was repealed for taxable years that
began after 2007, but has been replaced by the two new taxes on
January 1, 2008, the Business Income Tax and the Modified Gross
Receipts Tax, collectively referred to as the Michigan Business
Tax. It applies to corporations (including S corporations) as
well as to unincorporated businesses.
There is no annual corporate franchise tax on capital in
Michigan, but there is an initial fee based on shares of capital
stock at the time of incorporation (or registration of a foreign
corporation) or when the number of a corporation's authorized
shares are increased, as is discussed in
Section II(d).
TAXATION OF SOLE PROPRIETORS AND PARTNERSHIPS
The Michigan individual income tax was imposed at a
flat tax rate of 3.9% for the first 9 months of 2007,
increasing to 4.35% on October 1, 2007. Since the rate
for most of 2007 was 3.9%, the rate to be applied on 2007
tax returns for the whole year was a blended rate of 4.01%.
The tax rate will remain at 4.35% for several years and
then will drop by 0.10% on each October 1 in 2011, 2012,
2013, and 2014, and then will drop from 3.95% to 3.9% on
and after October 1, 2015. Theoretically.
Individual taxpayers generally pay state income tax on their
business earnings from a sole proprietorship, or on their
share of the earnings of a pass-through entity, such as a
partnership or S corporation or LLC. The Michigan personal
income tax return, Form MI-1040, must be
filed with the Michigan Department of Treasury.
All "flow-through entities" (partnerships, LLC's and S
corporations) are required to withhold and pay over state
income tax at the tax rate of 4.35% on the Michigan-source
income of the entity that is allocable to any "nonresident
member."
A nonresident member is a partner in a partnership, a member
of an LLC, or a shareholder of an S corporation, if the member
is a nonresident individual, a nonresident estate or trust,
or another flow-through entity with a nonresident owner.
Payment of the withheld tax must be made on a quarterly
basis, by the 20th day of the month following the end of
each calendar quarter, on Form 160, Combined Return
for Michigan Taxes. A partnership or other
flow-through entity may file a composite return on behalf
of its nonresident owner, on Form 807.
Sole proprietorships, like all other business entities,
including corporations and unincorporated entities, are
also subject to the Michigan Business Tax (MBT), which is
discussed in Section IV(a). The MBT is
actually two taxes, a tax on net income and a tax on gross
receipts. Thus, all unincorporated businesses and S
corporations in Michigan, except those that are small enough
to be exempted, are double-taxed, since the entity itself
must pay the MBT, and the sole proprietor, partners, LLC
members, or S corporation owners must report their share of
the entity's taxable income (all of its income, for a sole
proprietor) on their individual state income tax returns.
In addition to the MBT on a sole proprietor's business
activity and the state personal income tax on taxable
income, city income taxes of 1% apply in a number of cities,
or 2.5% in Detroit and 2% in Highland Park. (Resident tax
rates -- city tax rates for nonresidents are generally 1/2
the resident tax rate.) Scheduled reductions in the Detroit
tax rate for 2008 and 2009 have been suspended and the city
tax rate instead remains at the 2007 level of 2.5% in 2008
and 2009.
Partnerships, or entities taxable as partnerships, such as
LLC's, are not subject to state income taxation in Michigan.
However, like other businesses, the partnership is subject
to the MBT, and each partner must report his or her share
of the taxable income of the partnership on his or her state
income tax return, as well. Unlike most other states, Michigan
does not require partnerships to file income tax information
returns, but they must file MBT returns, as discussed above
in Section IV(a).
Individual taxpayers doing business as sole proprietors
(or who are partners in partnerships, members of LLC's, or
shareholders in S corporations), who have taxable income
from the business, will generally be required to make advance
payments of estimated Michigan income taxes if their net
tax liability (not covered by withholding) exceeds $500.
Payments are due in four installments, on the 15th day of
the 4th, 6th, and 9th months of the taxable year, and the
15th day of the first month of the following year. To
avoid underpayment penalties, it is necessary to pay in
90% of the current year's tax liability as estimated
tax prepayments, or an amount equal to 100% of the prior
year tax liability (110% if prior year adjusted gross
income was more than $150,000). Use Form
MI-1040ES estimated tax vouchers to make
the quarterly payments.
Sole proprietorships and partnerships are also required
to file quarterly estimated tax payments of the MBT, if
their expected annual MBT tax liability is $800 or more.
There is no Michigan corporate income tax, as such, but
corporations (including S corporations) pay the Michigan Business
Tax (MBT), as described in Section IV(a).
The Michigan Single Business Tax was repealed after December
31, 2007, but has been replaced by the Michigan Business Tax,
which is two new taxes, one on income (with certain adjustments)
and one on gross receipts. See the discussion of the SBT and
the new taxes that will replace it in Section IV(a).
Both new taxes apply to corporations, including S corporations,
as well as to unincorporated businesses.
Corporations are required to make estimated tax payments
of the MBT in advance, if their tax liability for the year
can reasonably be expected to exceed $800, generally. See
Section IV(a) for details on estimated
tax filing and payment requirements.
In addition to paying the Michigan Business Tax, corporations
are subject to city income taxes in a number of cities, generally
at a rate of 1% (including Detroit) or 2% in Highland Park.
TAXATION OF LIMITED LIABILITY COMPANIES
In Michigan, a limited liability company (LLC) is taxed
in the same manner as a partnership. That is, it is subject
to the Michigan Business Tax (MBT), and its members must also
each pay state income tax on their distributive shares of the
LLC's taxable income. Note that under IRS regulations, effective
since 1997, an LLC will be able to elect to be treated as
a partnership if it has more than one owner, or as a sole
proprietorship if it does not, for federal tax purposes.
Michigan law formerly required an LLC to have two or more
members, but was amended to permit one-owner LLC's.
See the discussion of the MBT, which consists of
an income tax and a modified gross receipts tax, in
Section IV(a). Both of new MBT taxes
apply to LLC's as well as to sole proprietorships,
partnerships, and corporations.
Note that it is not always entirely clear whether an LLC is
a "single-member LLC" or not, where the "single owner" is a
married couple who hold the entire ownership of the LLC in some
form of co-tenancy, such as joint tenants with right of survivorship,
tenants by the entirety, or as tenants in common. The federal Internal
Revenue Service (IRS) has taken a very lenient position in Rev.
Proc. 2002-69, where a couple hold the LLC interest as community
property, ruling that the IRS will accept whatever choice the couple
make, either to disregard the LLC as an entity (treating it as a
"single-member LLC") or to treat it as a partnership between the
husband and wife.
However, Michigan is not a community property state, so where
the LLC is owned by a husband and wife in some form of co-tenancy,
it is unclear whether the IRS treatment would be as lenient as
for community property owners, since the IRS has not issued any
published rulings on whether an LLC can be a disregarded entity
if held in one of the various forms of co-tenancy by a married
couple, rather than being held as community property. Thus, it
is also unclear, where an LLC is owned by a husband and wife as
co-tenants, whether Michigan would treat the LLC as a single-member
LLC or as a partnership.
For state income tax purposes, an LLC that is treated as
a partnership for federal income tax purposes will also be
treated as a partnership under Michigan tax laws, and is not
a taxable entity. However, like all other forms of business
legal entity, an LLC is subject to the Michigan Michigan
Business Tax, as discussed in Section IV(a).
LLC's are required to make estimated tax payments of
the MBT in advance, if their tax liability for the year
can reasonably be expected to exceed $800, generally. See
Section IV(a) for details on MBT estimated
tax filing and payment requirements.
(d) Sales and Use Tax.
Michigan imposes a general sales tax on retail sales of tangible
personal property and certain types of services at the statewide
rate of 6%. There are no local sales and use taxes in Michigan.
Sellers are required to obtain a seller's permit for each
place of business and to collect and pay over the state
sales and use taxes to the Department of Treasury. Larger
businesses must prepay the tax by electronic funds transfer
(EFT).
There are numerous exemptions from the sales tax, the most
important of which is the resale exemption. If you are a
wholesaler or retailer who purchases goods that you will
resell, your purchase of such goods may qualify as an exempt
sale for resale. Similarly, if you sell goods to wholesalers
or retailers for resale by them, your sale may also qualify
as an exempt sale for resale. In any such transaction, the
exemption is ordinarily available only if the purchaser gives
the seller a valid resale certificate, certifying that the
items are being purchased for resale, and not for use or
consumption by the buyer.
A shadow tax, the use tax, is also imposed at the same
rate as the sales tax. It is primarily intended to tax
property that is acquired from sources outside of the state,
in transactions not subject to sales tax, when such property
is used or consumed within Michigan. Use tax may also apply
to items purchased on an exempt basis, such as for resale,
if such items end up being used or consumed, instead of
being resold.
Before making any taxable sales, you will need to register
with the Michigan Department of Treasury, on Form 518,
Registration for Michigan Taxes. It will also serve
as your registration for other Michigan state taxes,
including your registration with the Michigan Unemployment
Agency for state unemployment tax.
For more information on Michigan sales tax registration
and compliance, see contact information for the offices of
the Department of Treasury in Section VI(a).
(e) Real and Personal Property Taxes.
In Michigan, as in every other state, any business real estate
you own will be subject to real property taxes. In general, there
is little that you must do, unless you wish to challenge your
assessed valuation, since the assessor will bill you for each
year's property taxes as they come due. Note that Michigan
real property taxes rates, which were formerly some 30% higher
than the national average, were reduced to approximately
9% below the national average after passage of Proposition
A by the voters several years ago.
State law limits annual increases in assessed valuation
of real property to 5%. However, in the case of a transfer
of ownership, such as where a business purchase occurs, any
acquired real property may be reassessed at current values.
Before 2005, Michigan counties levied property taxes in
December of each year and the bills were generally due in
February. Beginning in 2005, 1/3 of the tax for the year
was levied in the summer, and the remaining 2/3 on the
winter property tax bill. In 2006, 2/3 of the tax was to
be levied in the summer, and the remaining 1/3 in winter.
Beginning in 2007, the entire property tax for the year is
now levied in the summer.
Michigan also imposes personal property taxes on tangible
personal property. ("Personal property" is any kind of property
that is not real estate.) However, certain kinds of business
personal property, such as business inventories, are exempt
from personal property tax in Michigan.
Personal property tax also formerly applied to certain
types of intangible personal property in Michigan, but
this tax was fully phased out on January 1, 1998.
(f) Other Business Taxes.
Michigan imposes a number of excise and other
taxes on businesses, including:
(g) Trade Names. A trade name, also known as a fictitious or assumed name or DBA ("Doing Business As"), is any name used in the course of business that does not include the actual legal names of all the owners of the business. Thus, if your business goes by any name other than your own real name, it is operating under a trade name. The same is true of a corporation, if it operates under a name other than its legal name. A trade name might also be one that suggests the existence of additional owners, by using such words as "company," "associates," or "group." In most states where you do business, it will be necessary to register a trade, fictitious, or assumed name, so that people who do business with you can find out who the actual owners of your business are. You may also want to register any such trade name, as a means of protecting against other companies usurping that particular trade name. Michigan law requires any business that uses an assumed name, other than a corporation, limited partnership, or LLC, to file an assumed name registration in each county where it is doing business, paying a $6 fee to each county. Corporations, limited partnerships, or LLC's should instead file statewide with the Corporation Division of the Michigan Department of Labor and Economic Growth, if the name chosen is available. A Certificate of Assumed Name (Form BCS/CD-541) must also be filed for each assumed name used by a corporation, limited partnership, or LLC. The filing fee is $10 for a corporation or limited partnership or $25 for an LLC. V. EMPLOYER REQUIREMENTS IF YOU HAVE EMPLOYEES (a) Employer Registration and Withholding.
If you have any employees, you will already be withholding
federal income tax and FICA taxes from their wages. Since
Michigan imposes a state income tax on the income of
individuals, you will need to also withhold Michigan
income tax from the wages of your employees. Before you
begin to pay wages, you must register as an employer with
the Michigan Department of Treasury. Withholding tax returns
are due 20 days after the end of each monthly or quarterly
withholding periods and an annual return is due by February
28th for the preceding year. An employer with less than $750
of annual tax withheld need only file a single annual
return. The Department of Treasury will determine your filing
frequency, based on the following amounts of tax withheld
during a calendar year:
2009 MICHIGAN WAGE WITHHOLDING FILING FREQUENCY SUMMARY
Employers averaging more than $40,000 a month in Michigan state income tax withholding will be notified of a requirement to pay on an accelerated schedule and will be required to make payment by electronic funds transfer (EFT). For more information on Michigan income tax withholding and registration requirements for employers, see the contact information for the offices of the Department of Treasury, listed in Section VI(a). (b) Unemployment and Other State Payroll Taxes. If your business employs one or more individuals in each of 20 weeks during any calendar year or if your payroll amounts to $1,000 in any calendar quarter, you, as an employer will be required to pay state unemployment tax based on the amount of such wages paid. Employers subject to the Michigan unemployment tax are required to register with the Michigan Unemployment Insurance Agency, part of the Department of Labor and Economic Growth. New employers are required to pay tax at a rate of 2.7% in 2009 on the first $9,000 of wages paid to each employee, except for construction industry employers, whose rate varies and is much higher, ranging from 6.8% to 8.1% in recent years. The new employer rate applies for the first two years in which a business is subject to the unemployment tax. After two years, you will develop an unemployment tax experience rating. This rating is based on the number of employees you terminate who then claim unemployment benefits and the amount of such benefits paid to those former employees, under complex formulas. The state will inform you when they have assigned you an individual tax rate based on your firm's experience rating. That rate may be higher or, if you have had relatively few benefit claims charged to your account, lower than the standard new employer tax rate you initially were paying. Each year, the state will notify you what your tax rate will be for the coming year, sending you a tax rate notice, Form UIA 1771. All state unemployment taxes are imposed upon you as the employer, and, under Michigan law, cannot be charged to your employees or withheld from their wages. For more information on your Michigan unemployment tax obligations as an employer, see the contact information for the offices of the Michigan Department of Labor and Economic Growth, Unemployment Insurance Agency, listed in Section VI(a). (c) Workers' Compensation. Workers' compensation insurance is a state-mandated insurance requirement for most employers, in almost every state. In Michigan, businesses that employ three or more persons at one time or employed one person for at least 35 hours a week for 13 weeks during the preceding 52 weeks are required by law to have workers' compensation insurance, except those able to self-insure. Note, however, that a sole proprietor or a partner in a partnership is generally not considered an employee. Similarly, an officer who is a 10% stockholder of a corporation, or an employee-member of an LLC who owns 10% or more of the LLC, if the corporation or LLC has 10 or fewer owners, may elect not to be covered for workers' compensation purposes, if the members of the LLC or the board of directors of the corporation approve such an election out of coverage. In addition, a licensed real estate salesperson or associate real estate broker is not considered an employee for workers' compensation purposes if the following two conditions apply:
Workers' compensation provides wage loss and medical benefits to employees injured on the job and it protects you, as an employer, from legal action for damages for injuries or job-related illnesses suffered by your employees. In effect, it is a "no-fault" insurance system for work-related injuries or illnesses. Thus, if you fail to obtain required workers' compensation insurance, and an employee is injured on the job, you will have opened yourself to unlimited liability and severe legal consequences, so it is very important to obtain workers' compensation insurance for your employees. Be aware that neither general liability nor health and accident insurance can properly substitute for workers' compensation insurance. For more detailed information regarding your obligations as an employer under the Michigan workers' compensation laws, including the August, 2006 edition of the booklet "An Overview of Workers' Compensation in Michigan," contact your insurance carrier or see the contact information for the offices of the Workers' Compensation Agency, part of the Michigan Department of Labor and Economic Growth, listed in Section VI(a). An online version of the booklet is also available at the website of the Department of Labor and Economic Growth, whose website is linked to in Section VI(c). (d) State Wage and Hour Laws. Some employees of certain small firms not engaged in interstate commerce are not covered by the federal minimum wage and overtime laws. However, even if few or none of your employees are covered by the federal wage-hour laws, if, for example, because your firm does less than $500,000 a year in gross sales and the employees in question are not deemed to "...engage in (interstate) commerce...," they will still generally be subject to the Michigan wage-hour laws, which provide for a state minimum hourly wage that was recently increased to $6.95 an hour on October 1, 2006, to $7.15 on July 1, 2007 and to $7.40 an hour on July 1, 2008. The Michigan minimum wage law applies to any employer that has two or more employees, age 16 or older, at any time during a calendar year, for the rest of that calendar year, generally. Michigan labor laws also provide for payment of time-and-a-half for overtime hours worked in excess of 40 hours per week. In lieu of overtime pay, an employer may grant the employee the option of taking 1 1/2 hours of compensated time off for each hour of overtime worked, if the employer has an express written plan allowing such time off and the employee makes a request in writing to take such compensatory time off. Note that, as under federal wage-hour laws, certain classes of executive, administrative, and professional employees are exempted from the Michigan overtime pay requirements, with certain exceptions for retail or service employees who do not devote at least 40% of their workweek to executive or administrative activities. Besides the federal wage-hour posters that you must display in the workplace, you must also display a state wage-hour poster, which you can obtain from the Michigan Department of Labor and Economic Growth. In addition to wage-hour laws, most businesses are subject to federal child labor laws, which put numerous restrictions on the working hours and kinds of work in which minors under the age of 18 may engage. Your business must also be cognizant of similar state child labor laws, in Michigan. Michigan's child labor law requires that a child under the age of 18 may not be employed without first obtaining a work permit from a local school official, which permit must be submitted to and kept on file by the employer. Children under the age of 14 cannot be employed, generally, with a few limited exceptions such as for golf caddies age 11 or older. Minors aged 16 or 17 are subject to the following restrictions on working hours; they may not work:
In addition, such a minor who is attending school may not work and attend school for a combined total of more than 48 hours a week when school is in session. Minors aged 14 or 15 are subject to the same restrictions as noted above, except that they may not work between the hours of 9:00 p.m. and 7:00 a.m. A minor under the age of 18 may not be employed for more than 5 hours continuously without an interval of at least 30 minutes for a meal and rest period. An interval of less than 30 minutes is not considered to interrupt a continuous period of work. Employers must post a copy of the above child labor law restrictions in each workplace where minors under the age of 18 are employed and must also keep records of the times and hours worked by minors, which records must be kept for at least one year. The child labor notice can be obtained from the Department of Labor and Economic Growth. For required state labor law posters and additional information on Michigan's wage/hour and child labor laws, see the contact information for the Department of Labor and Economic Growth, listed in Section VI(a). (e) State Occupational Safety and Health Laws. Approximately half of the states have their own OSHA-like agency, charged with administering the state's own occupational safety and health laws. The remaining states have no such enforcement agency, and thus rely instead on the federal Occupational Safety and Health Administration (OSHA) to administer the federal job safety rules within such states. Michigan is one of the states that has its own OSHA-type agency. To determine if your workplace is in compliance with federal and Michigan job safety requirements, you may wish to contact the Safety Standards Division (MIOSHA) of the Michigan Department of Department of Labor and Economic Growth and request a free on-site safety consultation. You will not be cited for any violations detected, provided that you promptly correct the unsafe conditions. This differs from the rules for consultations by federal OSHA inspectors, who are required to cite you for any violations they find. For information on your job safety and health obligations as an employer, required posters, and possible on-site safety consultations, see the contact information for the Michigan Department of Labor and Economic Growth, listed in Section VI(a). (f) Other Miscellaneous State Labor Laws. Other Michigan labor laws you need to be aware of, as an employer, include the following: (1) Wage payments to terminated employees. Employers must generally pay wages once a month or more frequently. If you pay wages monthly, you must pay all wages for a given month no later than the first day of the next month, however. When you discharge an employee, or an employee voluntarily quits your employment, you must pay all wages owed as soon as the amount due can reasonably be determined. (2) Right-to-work laws. About half the states have enacted "right-to-work" laws, which guarantee that no person may be denied employment for refusing to join a union or for not paying union dues, thus banning either "union shop" or "agency shop" agreements, or both. In a union shop, an employee not belonging to a union may be hired but then must join the union, usually within 30 days. In an agency shop, an employee need not join the union but, to remain employed, must pay union dues. Michigan, a heavily unionized state, does not have such a right-to-work law and allows union shop or agency shop contracts between an employer and a union. Michigan's labor relations laws are generally very pro-union, such as a state law that prohibits employers from hiring or advertising for employment of strikebreakers during a strike or lockout. (3) State anti-discrimination laws. In addition to complying with federal anti-discrimination laws, employers must also be aware of and comply with state civil rights laws in Michigan, and display a poster informing employees of their rights. You can obtain this poster from the Michigan Department of Civil Rights, at the address listed in Section VI(a). Michigan law not only bans discrimination on the same bases as the federal law (race, religion, gender,) but also prohibits discrimination in employment based on height, weight, or familial status (having custody of one or more minor children) or marital status. Sexual harassment is specifically defined as discriminatory. Unlike federal equal opportunity laws, which generally exempt small employers, the Michigan civil rights laws apply to all employers of one or more employees. (4) Reporting new hires. Under federal welfare reform laws, employers in all states are now required to report newly-hired (or rehired) employees to a designated state agency (the New Hire Operations Center for Michigan employers) within 20 days after the date of hire. If filing electronically or on magnetic media, you must report new hires twice a month (if needed) on dates not more than 16 days nor less than 12 days apart. See the contact information for the New Hire Operations Center in Section VI(a) or the Internet link where you may file reports online, in Section VI(c). (5) Lie Detector Tests Prohibited. Under Michigan law, an employer may not require or demand, as a condition of employment, prospective employment, or continued employment, that an individual submit to or take a lie detector or similar test. Unlike the federal law, which exempts certain kinds of firms from the prohibition against polygraph testing, the Michigan law makes no exceptions for any private businesses. However, an employee or prospective employee may voluntarily request a lie detector test. If an employee does undergo such a test, the employer must keep the results of such test confidential and also must keep confidential the fact that any employee or applicant refused to submit to a polygraph examination. VI. STATE SOURCES OF HELP AND INFORMATION (a) Key State Agencies Contact Information. Unlike most other states, Michigan does not have a single agency to whom you can go to handle all your licensing and permit requirements for your business under the laws of Michigan. Accordingly, you will need to contact the various agencies that are mentioned in this book or listed below on an individual basis, to obtain needed forms, official posters, information and other assistance from each such agency. A list of addresses and other contact information for such key agencies is set forth below for your convenience. BUSINESS STARTUP INFORMATION. A key agency, that can provide helpful information on getting your business up and running in Michigan is: Michigan Economic Development Corporation You can request a business startup kit by calling the above telephone number. DEPARTMENT OF LABOR AND ECONOMIC GROWTH, CORPORATION DIVISION. Contact the offices of the Corporation Division, which is part of the Bureau of Commercial Services of the Department of Labor and Economic Growth, for information on:
Corporation Division TAXES. Obtain state income, sales and use tax, and other miscellaneous business tax forms, instructions and information from the Michigan Department of Treasury, which is the main tax collection agency in Michigan. Also register with this agency as an employer, for state income tax withholding purposes, and for sales and use tax, Single Business Tax, and other state taxes, other than the state unemployment tax. For state tax information, contact: Michigan Department of Treasury STATE LABOR LAWS. Contact the following agency about your obligations as an employer under various state labor laws, including:
Michigan Department of Labor and Economic Growth STATE LICENSES. The following agency is the main Michigan licensing agency for a wide range of occupations and professions. Department of Labor and Economic Growth STATE SALES TAX. Obtain your sales and use tax license or permit and information on the Michigan sales and use tax law, from the Michigan Department of Treasury, at the address listed above for that agency. STATE UNEMPLOYMENT TAX. Contact the following state agency to determine whether you are an employer subject to payment of state unemployment taxes, and for registration as an employer if you are subject. Michigan Department of Labor & Economic Growth NEW HIRE REPORTING. Report newly hired employees within 20 days of hiring to the following state office (or, if reporting electronically or by magnetic media, report by two monthly transmissions not less than 12 nor more than 16 days apart): Michigan New Hire Operations Center WORKERS' COMPENSATION INSURANCE. If you employ workers for whom you must supply workers' compensation coverage, contact the Workers' Compensation Agency of the Michigan Department of Labor and Economic Growth, at the address listed above for the Department of Labor and Economic Growth. STATE ANTI-DISCRIMINATION LAWS. Contact the following state agency for more detailed information on Michigan civil rights laws that may apply to your business, and to obtain anti-discrimination notices you are required to post in the workplace: Michigan Department of Civil Rights (b) Small Business Development Centers. A number of Small Business Development Centers (SBDCs) are located throughout Michigan to assist you. These centers, usually located on college campuses, provide a wealth of start-up information and sponsor frequent business-oriented seminars. Contact the lead office for the location of other SBDCs nearer to you. Michigan Small Business & Technology Development Center (c) Internet Sites. For anyone with access to the Internet, there is a wealth of state and even local business information provided by state and local governments. All states now have a state government Web page, and most major Michigan state agencies also have sites on the Internet where you can obtain useful small business information on matters such as state taxes, financing sources, or the addresses and phone numbers (or e-mail addresses) of various state and federal agencies' offices in Michigan. Since new sites are appearing frequently, you might also want to search for other Michigan government Web sites by using one of the popular Internet search engines, such as Google, MSN, or Yahoo. To start your Internet search for Michigan government information, you may want to begin with the following Internet sites: Michigan state government page (with links to various state agencies): Corporation Division, of the Bureau of Commercial Services of the Department of Labor and Economic Growth (information on corporate, partnership and LLC filings, plus downloadable forms): Michigan Department of Treasury (Michigan state tax information, download state tax forms): Michigan Department of Labor and Economic Growth, Wage and Hour Division: Michigan Department of Labor and Economic Growth, Unemployment Insurance Agency: Michigan Economic Development Corporation (information and assistance in starting, financing or relocating a business in Michigan): Michigan Department of Civil Rights (anti-discrimination regulations and information): Michigan New Hire Reporting: (d) Financing Sources. For information and help on locating financing for your small business, contact the nearest U.S. Small Business Administration office in Michigan, or contact the Michigan Economic Development Corporation, at the address listed in VI(a) for that agency. Contact the U.S. Small Business Administration District office in Michigan at: U.S. Small Business Administration |
Copyright © 2009 Michael D. Jenkins
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