Business licenses are one of the most important legal documents for any entity who wants to operate a branch or main office in the state of Michigan. Without a legal business permit, businesses are considered illegal and might be closed or heavily fined for operating without one – even if they did not know.
How much is a business license in Michigan? In Michigan, a basic business license costs as low as $25, though might increase to as high as $150 or higher for specific license and permit requirements. The cost of business license applications in Michigan can vary depending on the type of business that is applying.
Michigan requires all business types to register for a business license to remain tax compliant within the state. Business licenses are easy to register for in Michigan, and can be done either online or through the relevant physical city or town office in Michigan. Registrations are processed immediately.
Michigan Business Licenses
Any business who wants to operate a main location or branch office within Michigan will require a basic business license. Basic business licenses are necessary to buy, sell and remain tax compliant.
Within Michigan, the cost of business license applications is not standard, but will depend from one location to the next. Special business license types like Limited Liability Corporations can also be charged at a higher rate than simple business permits.
Basic business licenses in Michigan can cost $25 and upwards to register.
Specific business licenses like an LLC in Michigan might cost more, and costs can hike up to $500 for a registered LLC.
The majority of Michigan business licenses are valid for a year after their approval.
The state of Michigan has made most permits and license applications available through the online portal for the state. Business licenses can be registered through the web portal for the relevant Michigan town or city.
Additional licenses could be required for specific business and industry types: liquor, food, nonprofit and entertainment licenses are just some that Michigan can require in addition to basic sales permits.
Most Michigan business license applications will process within 2 to 4 weeks from the application date. Individual business offices and especially physical form applications can take longer than this.
Application fees are non-refundable. This is still true even in the case of unsuccessful applications.
Laws in Michigan are very specific about business licenses: all businesses who want to operate in this state will need one, even business who operate online.
Business without licenses in place could face closure until their licenses have been brought up to date. Fines might also be leveled against any businesses who register late, even ones who claim they didn’t know about the regulations.
Business license renewals must be done once a year for most Michigan business licenses, although this can depend on the type of business license and individual location in the state.
How long does a business license in Michigan take?
Business licenses in Michigan take approximately 2 to 4 weeks from the date of application to process. Physical form applications done at an office might take longer due to general staff workload, and online applications are recommended for speed.
When does a business license in Michigan expire?
Most Michigan business licenses will remain valid for a period of one year after their approval date. There are exceptions. Renewal is expected either on or before the deadline to remain legal in Michigan.
How do I register for a nonprofit license in Michigan?
Nonprofit licenses are a specific type of business license required for not-for-profit ventures and organizations. These can be applied for through the same office or portal as the regular Michigan business license, but with a different form.
Why are there different business license costs in Michigan?
Michigan does not have a single, standard cost for all types of business licenses. Costs can be as little as $25 for a basic business license, but can also go as high as $150 for a general license – or $500 for an LLC.
What if my business license is delayed?
Business licenses can be delayed due to staff volume, workloads and sometimes at busy times of the year. If a business license takes more than the recommended period, follow up with the relevant office or portal to find out why.
Types of Business Licenses
|An LLC or Company||A Limited Liability Corporation is a special type of company that requires separate registration in Michigan.|
|A General Operating||License A general operating license is another name for a basic business license. All businesses who want to operate within or from Michigan will need one.|
|A Food License||Food licenses are reserved for businesses who trade in or process food-related items. Michigan still requires a basic business license from these companies first.|
|A Nonprofit||Nonprofit companies that exist in Michigan are covered by the nonprofit license, which is a separate type of license with a similar registration process.|
Michigan Business Facts
• Small businesses in the state of Michigan employ approximately 24.2 million people.
• Retail and technical services are the largest business industries in Michigan.
• All business types will require a business license to trade legally in Michigan state.
• Michigan is rated as one of the top states for new businesses in the whole United States.
Getting a Business License in Michigan
Michigan laws are clear about the requirement of a business license for any business who wants to operate a main office or branch in this particular state. All businesses need a license, even if they require other special permits.
Business license applications in Michigan can cost up to $150 or more. The final cost of a Michigan business license application depends on the type of business and its location within the state.
Most Michigan business licenses will remain valid for a period of 1 year after they have been approved. License renewal must be done on or before the deadline.
Here are the business license costs in other states: