How To Register For A Michigan Sales Tax License (Apr. 2026)

If your Limited Liability Company (LLC) sells taxable goods or services in the state, you must register for a Michigan Sales Tax License. This is regardless of whether you operate online, in a physical location, or as a remote seller.

Following the specific state filing procedures ensures that your business continues smooth operations and maintains its good standing with the state.

In this guide, you’ll learn about the entire Michigan Sales Tax License filing process. Once you’ve finished reading, you can quickly register your LLC and complete the process correctly and with confidence.

An Overview Of The Michigan Sales Tax License

A Michigan Sales Tax License is an authorization from the Department of Treasury that allows your LLC to legally collect and remit sales tax on taxable goods. Obtaining it is completely free, and it will be renewed automatically as long as you file and pay your tax returns on time each year.

You must obtain your Michigan Sales Tax License before making your first taxable retail sale.

The Michigan sales tax rate for most goods is 6%, whether sold online, in person, or through other retail channels. Certain residential utilities, such as natural gas and electricity, are taxed at a lower rate of 4%. Michigan does not impose local sales taxes.

Registration is required if your business meets any of the following conditions:

• Sells taxable goods or services in Michigan
• Meets Michigan’s physical or economic nexus requirements as a retail or remote seller
• Plans to make taxable sales, since registration is required before sales begin

However, not everyone is required to pay this tax, as certain exemptions apply, which I will discuss in the following sections.

You only need one Michigan Sales Tax License if you operate multiple state businesses. However, you must update your business location information with the Michigan Department of Treasury.

How To Get A Sales Tax License In Michigan Online: A Step-By-Step Guide

You can register for a Michigan Sales Tax License much faster using the Michigan Treasury Online (MTO) system if you already have a Federal Employer Identification Number (EIN) for your LLC.

I advise most businesses to use this method, as the approval is much quicker, and you can access your license almost immediately after processing.

1. Navigate To The Michigan Department Of Treasury Website

To begin your filing, navigate to the official Michigan Department of Treasury website. On the homepage, find the Sales and Use Taxes section.

From here, look for the “Pay online with MTO” option. Click this to be taken directly to the Michigan Treasury Online (MTO) portal. This is where you’ll start your LLC’s online e-Registration application.

2. Log In

From the Michigan Treasury Online (MTO) homepage, you must log in to continue your registration. You have two potential paths:

• You can enter your username and password to access your dashboard if you already have an MTO account.
• You’ll need to create an account before proceeding if you don’t have one yet. I’ve provided a full step-by-step guide on creating an account later on in my article.

You should be taken back to the main MTO homepage after logging in.

3. Choose “Start A New Business (E-Registration)”

On the homepage, click “Start a new business (E-Registration).” The system will then begin your Michigan Sales Tax online application process.

You should be given a registration form in a new tab or window. This is where you’ll follow my step-by-step guide to enter your LLC’s key business information.

4. Answer The Eligibility Questions

You should see a set of eligibility questions once you’ve launched your e-Registration form. These confirm that you’re registering a new business with an existing EIN.

Here’s what to do when prompted:

• Select “Yes” for both questions.
• Click “Next” to continue to the next application step.

Once completed, you confirm that your Michigan LLC meets the basic requirements needed to register for Michigan Business Taxes online.

5. Provide Your FEIN Number

In the next section, enter your LLC’s Federal Employer Identification Number (FEIN). You need this for your online registration, as it becomes your Michigan Treasury business account number once your application is processed.

Type your 9-digit FEIN into the applicable field. Make sure you use the standard IRS format (XX-XXXXXXX).

Click “Next” once you’ve entered your FEIN to move to the next step.

6. Complete Your Application And Click “Submit”

After verifying your FEIN, you’ll be taken through a series of screens where you must enter further information about your LLC. The online system guides you step-by-step, just like the paper Form 518, but in a much simpler, faster format.

You must provide LLC details, which include:

• Your LLC business structure.
• Your NAICS code and business activity.
• Whether you have a physical presence in the state or operate as a remote seller.
• Your estimated monthly sales.
• Any sales tax exemptions (If applicable).

Click “Submit” once you’ve reviewed your details to send your electronic application to the Michigan Department of Treasury.

7. Wait For State Approval

The Michigan Treasury Office (MTO) system will process your application in two steps:

1. System validation (10–15 minutes): MTO will automatically check that your form is complete. They’ll see if your EIN, business details, and registration information match the state and federal records.
2. Official review (Up to 48 hours): The Michigan Department of Treasury will review your application once it’s been validated. This determines whether or not your Sales Tax License will be approved.

Once approved:

• Your Michigan Sales Tax License is in your MTO account. You can now view or download it.
• The treasury may send you follow-up emails. Therefore, make sure you check your inbox and spam folder.

8. Start Collecting Your Sales Tax

Your LLC is officially authorized to collect Sales Tax from customers once you’ve received your Michigan Sales Tax License.

Going forward, here’s what you need to do:

• Charge the correct Michigan Sales Tax rate on taxable transactions.
• Maintain accurate business records regarding your sales and collected taxes.
• File records according to your assigned filing frequency (Monthly, quarterly, or annually).
• Remit your collected tax to the Michigan Department of Treasury before each deadline.

Creating Your Account On Michigan Treasury Online (MTO)

You must first create an account on Michigan Treasury Online (MTO) before you can register your LLC for the Michigan Sales Tax License. This quick registration process ensures you can access your tax filings, licenses, and state correspondence, all in one place.

1. Find The Michigan Treasury Online (MTO) Page

To begin, visit the Michigan Treasury Online login page. Then select “Create New User Profile.” From here, you can begin setting up your personal MTO login, which is used to manage your taxes.

2. Enter Your Personal Information And Answer The Verification Questions

In this section, you must provide your basic personal information. This includes your:

• Full name.
• Phone number.
• Email address.

Next, answer the verification question. Completing this secures your account and confirms with the system that you’re not a bot.

Click “Next” to continue once you’ve filled in the required fields.

3. Enter Your Username And Password

Next, you must create your MTO account login details. When doing this, follow the system’s username guidelines:

• Use your last name.
• Then, follow this with your first initial.
• Following this, use any four numbers.

Example: Your name is John Smith.

• You choose 9999 as your four digits.
• Your username would be smithj9999.

Next, you must create a strong password according to the system’s security regulations.

Following this, scroll down to the “Security Questions & Answers” section. When setting your security questions from the dropdown menu, input memorable answers. These are used to protect your account and recover your access if needed.

Click “Submit” once everything looks correct to complete your account setup.

4. Read The “Successful Submission” Page

With your information submitted, the system will display a confirmation page telling you that your MTO user profile has been created.

Your MTO account is now active and ready to use. Click “Login” on the confirmation screen to sign in with your username and password. After this, you can start registering your LLC for its Michigan Sales Tax License and access additional tax-related services through the portal.

Obtaining Your Michigan Sales Tax License By Mail

You can submit Form 518: Michigan Business Taxes Registration Book by mail if you prefer applying for your license using the paper filing method.

First, download Form 518, then complete it using one of two methods:

1. Print it and complete it by hand using blue or black ink.
2. Type your information directly into your computer.

Once completed, send your form to the Michigan Department of Treasury at the following address.

MICHIGAN DEPARTMENT OF TREASURY
Post Office Box 30778
Lansing, Michigan 48909-8278

1. Registration For Michigan Taxes

To start your application, fill in the form titled “Registration for Michigan Taxes”. This begins on page 7 of your PDF.

a. Check The Box “Reason For This Application”

First, select the reason that best describes why you’re registering for your Michigan Sales Tax License.

In most cases, you should select “Started a new business.” This applies to the majority of new LLCs, Corporations, and small businesses.

b. Federal Employer Identification Number

In the Federal Employer Identification Number (FEIN) section, you must provide your Federal Identification Number. This must be written using the standard IRS format: XX-XXXXXXX (9 digits).

Your FEIN is issued by the IRS so that your LLC can be identified for Federal and State Tax filing processes.

Follow the guidance below to correctly complete this section:

• Enter the full 9-digit number exactly as it appears on your IRS Confirmation notice if you already have an EIN.
• Leave this field blank if you’ve applied for an EIN but haven’t yet received one. In this case, the Michigan Treasury will assign your business a temporary account number during processing. However, I recommend applying for one before submitting Form 518 (Using IRS Form SS-4 or applying online).

c. Company Name Or Owner’s Full Name

Next, provide your full legal business name or the full legal name of the owner. This depends on your LLC’s business structure.

As your business is an LLC, enter your exact legal name (as stated on your approved Articles of Organization). Your name must match the official State and Federal records to avoid potential rejection or processing delays.

d. Business Name, Assumed Name, Or DBA

Enter your Assumed Name or DBA (Doing Business As) if your business operates under a different name than its legal name.

Complete this section using the points below:

• Enter your full assumed name (Exactly as registered) if your business uses a DBA. For example, your LLC legal name is “ABC Michigan LLC,” but your DBA is “ABC Store.”
• Use your legal business name from your previous fields, or leave this section blank if your LLC does NOT use a different operating name.

Completing this section ensures that the Michigan Department of Treasury can correctly identify your business in all tax records and correspondence.

e. Legal Address

In the next section, provide your LLC’s official legal address. This is the location where your records are kept and where the state may contact you.

Note: You must use a physical Michigan street address (You can NOT use a P.O. box).

Include the following when completing this section:

• Street name and number (For example: 123 Main St, Apt 2).
• City.
• State (Such as MI).
• ZIP code.
• Business telephone number.

f. Taxpayer Mailing Address

Enter the address where you wish to receive official tax mail from the Michigan Department of Treasury. While you can use the same address as your legal address, you don’t have to.

You can include:

• A different mailing address (If you want your tax correspondence sent somewhere else).
• The same address as your legal address (If you do NOT need an alternative mailing address).

You’ll be told to attach Form 1488 or Form 151 (Power of Attorney) if your mailing address belongs to your accountant or another LLC representative. This ensures that the Michigan Treasury has permission to communicate with them.

g. Physical Address

Provide your physical business operating location in this section. This is the physical place where your office, warehouse, retail store, or business operations are located. You also can NOT use a P.O. box for this section.

Note: Include your full street address, city, state, and ZIP code (If you have a Michigan business location).

Most Michigan businesses will NOT have a physical state address. This is especially common if you’re an online or remote seller. In this case, check “If NO Michigan address, check this box.” This informs the treasury that you’re operating out of state but still require a Michigan Sales Tax License.

h. Business Ownership Type Code

Enter the Business Ownership Type Code that closely matches your business structure (For Federal Tax purposes). As this is a required section, ensure you select the correct one from the list provided.

These are the most common codes to be aware of:

• 35 – LLC taxed as a Sole Proprietorship.
• 36 – LLC taxed as a Partnership.
• 37 – LLC or Corporation taxed as a C-Corporation.
• 38 – LLC taxed as an S-Corporation.

Make sure you choose a code that correctly applies to your Federal Tax classification. For example, you’ll typically choose “35” if you’re a single-member LLC and file taxes using your personal return (Form 1040).

At the bottom, you should see a note for Professional Employer Organizations (PEOs). Leave this section blank if you’re NOT a PEO.

i. LARA Corporate ID Number

Provide your LLC’s LARA Corporate ID Number. This is the identification number assigned when you register an LLC with the Michigan Department of Licensing and Regulatory Affairs (LARA).

This number is typically:

• A 6-digit or 9-digit identifier.
• Found on your LLC’s Articles of Organization.

Note: Make sure you write it exactly as it appears on your formation documents (If you already have this number).

Check the box indicating that you’ve already applied for but haven’t received your Corporate ID if you’ve already submitted your formation paperwork. In this case, provide your:

• Date of Incorporation: Your business entity’s official formation date.
• State of Incorporation: This is usually “MI” (If you formed your business in Michigan).

Completing this section ensures that the Michigan Treasury can match your tax registration with your state business registration records.

j. Business Code (NAICS)

After completing your LARA Corporate ID Number, you must enter your NAICS code. This is a six-digit number that describes your primary business activities. Providing this helps the Michigan Department of Treasury understand what type of products or services you offer.

To complete this section:

• Find the 6-digit NAICS code that closely matches your main business activity.
• Use the official NAICS website to look this up if needed.
• Enter the six digits in the provided boxes.

Example: Your code will be 448140 if you sell clothing in a retail store.

k. Define Your Business Activity

Provide a short and clear overview of your main business activities. Use a simple sentence to explain your main activity.

Note: You do NOT need to write a long explanation. It must be enough for the Michigan Department of Treasury to understand the nature of your operations. 

l. What Products, If Any, Do You Sell (Sold To Final Consumer)

In the next section, list the types of products that you’re directly selling to the final consumer. The state uses this information to better understand the taxable goods that you’re offering.

Include each general category if your LLC sells multiple product types. You can leave this section blank if you don’t sell tangible goods.

m. Sales Tax

This section is used to determine whether your business needs a Michigan Sales Tax License. Check the applicable box if your LLC sells tangible personal property to Michigan consumers in person, online, or both.

Complete these additional fields after checking the “Sales Tax” box:

• 12a. Date that liability will begin: Using the MM/DD/YYYY format, state the date that you expect to start making taxable sales in the state. This must reflect the first day that you plan to sell taxable goods, regardless of whether you’re opening soon or have begun operating.
• 12b. Estimated monthly payment: Pick the option that best matches your expected Sales Tax figure. This is your estimated Sales Tax that you’ll remit to the state, NOT the amount of sales.

Completing this section helps the state determine how often your LLC needs to file its return (Monthly, quarterly, or annually).

Example: Your LLC sells $1,000 worth of taxable goods in a month.

• Your Sales Tax would be 6% of that amount ($60).
• You must select “Up to $62″ as your figure is less than $62.

n. Annual Gross Receipts Over $350,000 (CIT)

Most Michigan LLCs will be taxed as “pass-through entities,” either as a Sole Proprietorship (Single-member LLCs) or as a Partnership (Multi-member LLCs). You do NOT need to pay the Michigan Corporate Income Tax (CIT), meaning you won’t need to complete this section.

You only need to complete this section if you’ve formally elected to be taxed as a “C-Corporation” with the IRS. This is done by filing Form 8832 or Form 2553.

You can leave this section blank if you have not made this election. Here’s what to do if your LLC is taxed as a C-Corporation and has expected Michigan-appointed Gross Receipts of over $350,000 annually:

1. Check the applicable box.
2. Enter your “15a. Date Liability Begins.” This is usually the date your LLC started doing business in Michigan.

o. Number Of Business Locations

Provide your total number of LLC operation locations if you operate in the state. This helps the Michigan Department of Treasury to understand how many business sites you’re using in the state.

Complete this section using the following steps:

• Write “1” if your LLC only has one Michigan location.
• Write “the total number” if your LLC operates multiple stores, warehouses, offices, or facilities.
• Enter “0” or leave the field blank (If indicated) if your LLC does NOT have a physical Michigan location as a remote seller. However, you must have checked the earlier box to indicate that you have no Michigan physical address.

You must attach an additional sheet including the following details if you list more than one location:

• The full address of each location.
• Contact details (if requested).

p. Fiscal Year End Month

State the month that your LLC closes its tax year. This must be written using a two-digit (MM) format. This information tells the Michigan Department of Treasury when your business’s financial year officially ends.

Make sure you choose the month that matches your federal and internal accounting records. This ensures that your filings stay consistent.

q. Owners, Members, Or Officers

Lastly, provide information about the individuals owning or managing your LLC. The state requires at least one listed person for this section. Furthermore, each listed person must sign the form.

This information ensures that the state keeps accurate contact and verification information for your business’s responsible parties.

Fill in the following information for each line (28, 29, 30, 31):

• Name: The full legal name of your LLC owner, member, or officer.
• Title: Common titles include “Member” or “Managing Member.”
• Date of birth: Written in the MM/DD/YYYY format.
• Phone number: A reliable personal or business contact number.
• Driver’s license / Michigan ID number: Provide this if you have it to hand. If not, leave this section blank (Depending on the form’s instructions).
• Social security number: This is required for verification.
• Signature: The individual must sign to certify the accuracy of the information.

You must make sure that at least one person signs the declaration at the end, confirming that “The information provided on this form is true, correct, and complete.” This is usually your LLC’s Managing Member or Authorized Representative

Note: Without your signature, your application can NOT be processed.

2. Fill In The Other Required Fields (Depending On Your LLC’s Activities)

Your Michigan Sales Tax License form covers several taxes, meaning you must complete additional fields. In the sections below, I’ve discussed these fields that are based on your LLC’s activities.

a. Use Tax

You must indicate if your LLC has Michigan Use Tax obligations. Check this box if you perform taxable activities under Michigan’s Use Tax laws. Even if you do NOT sell products directly, this section may apply.

Complete these required fields once you’ve selected the “Use Tax” box:

• 13a. Date that liability will begin: Provide your expected business start date (Where you’ll perform activities that trigger Use Tax obligations). Examples include starting hotel operations or opening a rental service.
• 13b. Estimated monthly payment: Choose a suitable range to match your expected monthly Use Tax amount: Up to $62; $63 to $999; Over $1,000.

This section helps the state determine your filing frequency.

Examples:

• Your LLC is a small hotel that earns $20,000 a month in room revenue.
• Your 6% Use Tax would be $1,200.
• You need to select “Over $1,000.”

b. Unemployment Insurance Tax

Complete this section if your LLC will have Michigan Employees (If you plan to hire them full-time, part-time, or even just one employee. Check the box that registers your LLC for Unemployment Insurance Tax.

After this, you must attach:

• UIA Schedule A.
• UIA Schedule B.
• A copy of your Articles of Organization.

Note: You can leave this section blank if your LLC will NOT have employees.

c. Employer And Retirement Withholding Tax

You must complete this section if your LLC will withhold Michigan income tax from employee wages or taxable retirement payments. Check the applicable box and enter the following details if you plan to hire employees:

• 14a. The date you will begin withholding tax.
• 14b. Your estimated monthly withholding amount.

Again, leave this section blank if your LLC has no employees.

d. Motor Fuel & IFTA Tax

Complete this section if your Michigan LLC is involved in fuel-related activities or operates commercial diesel vehicles across state lines.

You can leave this section blank if your LLC does NOT handle motor fuel or interstate trucking. This will be the case for most Michigan LLCs applying for a Sales Tax License.

e. Motor Fuel Tax: Detailed Questions

Answer the following questions if you’ve checked the “Motor Fuel Tax box.”

For this, indicate:

• Whether you operate a fuel terminal or refinery.
• Whether you transport fuel across Michigan borders.

Skip this section if your LLC does NOT operate in the fuel industry.

f. IFTA Tax – Detailed Questions

If you checked the IFTA box in the earlier section, you must complete this part. State whether your LLC operates qualified commercial diesel vehicles or transports fuel across state borders.

Leave this section blank if you do NOT perform these activities.

g. Tobacco Tax

You must complete this section if your LLC sells, distributes, or purchases tobacco products. Leave this section blank if you have no direct involvement.

h. Tobacco Tax – Detailed Questions

If you checked the Tobacco Tax box, you must complete this section. You’re required to answer simple Yes/No questions regarding whether your LLC sells, purchases, or distributes tobacco products. This includes B2B or vending machines.

Skip this section if your LLC does NOT handle any tobacco-related activities.

i. Assets Acquired

If your LLC has purchased or taken over an existing business, you need to complete the Assets Acquired” section. Select “None” if you haven’t purchased one. If you’re a new LLC, you’ll most likely leave this section blank.

j. Previous Business Information

Complete this section if your LLC has acquired, merged with, or is continuing an existing business. State your previous business name, address, and FEIN (If applicable).

In most cases, your LLC will be completely new, meaning you can leave this section blank.

k. Seasonal Only

Fill in the required fields if your LLC operates seasonally. This includes a holiday business or summer shop.

Provide the months that you open and close. You can leave this section blank if you run your LLC year-round or only sell occasionally.

Note: Businesses operating at a few yearly events should use Form 5089 instead of Form 518.

l. Payroll Service

If your LLC uses a professional payroll service provider to handle payroll and tax filings, you must check the required box in this section. Leave this part blank if you manage payroll yourself or use an accountant who isn’t a payroll service.

3. UIA Schedule A: Liability Questionnaire

You only need to complete this section if your LLC will have employees or will meet Michigan’s unemployment tax requirements, including situations where you plan to hire workers and pay at least $1,000 in wages in a calendar year. This also applies if your LLC will have employees for 20 or more weeks.

Most new LLCs without employees will leave most of these sections blank. In this case, you only need to fill in:

• Your FEIN.
• Your business information.
• The signature section.

4. UIA Schedule B: Successorship Questionnaire

You only need to complete this section if your LLC has purchased, merged with, or taken over any part of another Michigan business. Completing this section helps the state determine if your LLC will inherit that business’s Unemployment Tax history.

Most LLCs only need to follow the simple steps outlined below:

1. Check the boxes indicating the questions are “Not applicable.”
2. Leave the successorship details blank.
3. Enter your EIN and basic LLC information.
4. Sign at the bottom of the form.

Sales Tax Display Requirement

All businesses, including LLCs, must display a valid Sales Tax License in a visible place at operating location. This is stated under the Michigan Administrative Code § R. 205.1.

If your business has multiple locations, you should display a copy of your license at each location. Your LLC may be seen as operating without a valid Sales & Use Tax License if it fails to display it correctly, resulting in penalties, such as misdemeanor charges, fines, charges, and possible business suspension.

The Next Steps After Acquiring Your Michigan Sales Tax License

Once you’ve successfully registered for your Michigan Sales Tax License (Online or by mail), you must complete several additional steps. These ensure that your LLC avoids penalties and stays in compliance with Michigan Tax laws.

1. Receive Your Michigan Sales Tax License

The Michigan Department of Treasury will issue your official Sales Tax License once your application is processed.

• Use your Michigan Treasury Online (MTO) account to view and download your approved license within 10-48 hours if you applied online.
• You will receive a physical copy at your legal mailing address within 4-6 weeks if you used the mail filing method.

2. Get Your Filing Frequency

The state will issue your filing frequency based on your LLC’s estimated monthly sales tax liability:

• Monthly: For higher-volume sellers.
• Quarterly: For moderate sales.
• Annually: For low sales volume.

Your filing frequency determines when you must file and submit your LLC’s Sales Tax returns. This can be adjusted by the Treasury in future years if your actual reported sales change.

3. Display Your Sales Tax License At Your Business Premises

As I’ve mentioned above, state law requires all businesses to display a valid Sales Tax License in a visible spot at their operating location.

4. Begin Collecting Sales Tax

You must complete the following once your Michigan License is active:

• Begin collecting the correct Michigan Sales Tax rate.
• Apply the correct tax to all taxable sales made by your business.
• Keep detailed records of the collected sales tax.

These rules apply to in-state and remote sellers, including online businesses shipping to Michigan customers.

5. File And Remit Sales Tax

Your LLC must file returns and send payments to the Michigan Treasury using the required deadlines once you start collecting tax. This is based on your assigned filing frequency (monthly, quarterly, or annually). Furthermore, you must submit your Annual Return by February 28, regardless of your assigned schedule.

This ensures that your LLC avoids unnecessary penalties and interest and remains compliant in the state.

6. Update Your Business Information When Opening More Locations

You do NOT need a new Sales Tax License for each location if you open multiple businesses in the state. While Michigan issues only one license per LLC, you must update your business location information with the Department of Treasury.

You do NOT need to pay anything to update your Sales Tax License. Once processed, your new business locations will automatically be added.

a. Update Online

1. Log in to your Michigan Treasury Online (MTO) account.
2. Choose “Manage Business Registration”.
3. Edit your business details and add the new locations.

The online system will process your update within 24-48 hours. Once approved, you can download and print your updated Sales Tax License immediately.

b. Update By Mail

1. Complete Form 163 – Notice of Change or Discontinuance.
2. Mail it to the Michigan Department of Treasury by following the instructions.

This generally takes 2-4 weeks, including the mailing time and manual updates.

When To Pay Your Sales Tax Return?

Your LLC will be assigned a filing frequency (Monthly, quarterly, or annually) by the Michigan Department of Treasury once you’ve registered for your Sales Tax License. This is based on your estimated tax liability.

I’ve provided a useful reference table below outlining the declaration periods and their corresponding filing deadlines.

Example: You run a new LLC selling online products.

• The Michigan Department of Treasury assigns a quarterly filing frequency.
• You must file your Sales Tax returns every three months using the schedule below.

You begin selling taxable goods in February. You make $5,000 in taxable sales and collect $300 in sales tax (6% of $5,000) between February and March. In this case, you can hold this tax until your quarterly deadline rather than filing straight away.

Should I Register For A Michigan Sales Tax License?

You may need a Michigan Sales Tax License before legally collecting or remitting Sales Tax if you’re forming a Michigan LLC (Or operating from another state but selling in Michigan).

1. Who Needs To Register

You must obtain a Michigan Sales Tax License if:

• You sell tangible personal property in the state (online or in-store).
• You provide a service that sells taxable goods, such as a repair service that includes replacement parts.
• You operate as a retail business (this can be any size, from a storefront to a home-based LLC).
• You’re a remote LLC (operating outside the state) that meets the state’s economic or physical nexus standards.

If you want to learn more, you can read the Notice of New Sales and Use Tax Requirements for Out-of-State Sellers guide.

2. Who Does NOT Need To Register

You do NOT need a Sales Tax License if:

• You only sell wholesale (You’re selling to other businesses for resale and not to Michigan consumers).
• You operate as a subcontractor or contractor (Contractors are considered the final consumers of construction materials).
• You only provide services without selling taxable property to Michigan customers.

The Importance Of Obtaining A Michigan Sales Tax License

Under the General Sales Tax Act (Act 167 of 1933), any individual or person in the state must obtain a Sales Tax License before operating. This rule applies to all business entities, including LLCs, Partnerships, Corporations, and Sole Proprietors.

1. Criminal Offense

If you fail to secure a valid license, it’s considered a criminal violation under Michigan Compiled Law (MCL) §205.53 (3) (4). In this case, you can NOT legally collect Sales Tax or make taxable sales.

These regulations ensure that all Michigan businesses operate under the same legal foundation. Furthermore, Michigan customers will be charged Sales Tax at the correct rate.

Anyone operating without a Sales Tax License:

• May be found guilty of a misdemeanor.
• Face a fine of up to $1,000.
• Face imprisonment for up to 1 year.
• Have their business license suspended by the Michigan Department of Treasury.

2. Penalties For Not Displaying Business License

According to the Michigan Administrative Code § R. 205.1, all businesses, including LLCs, are required to display a valid Sales & Use Tax License in a clearly visible location at their primary place of business.

Failure to properly display the required business license may result in the business being considered as operating without a valid license, leading to serious legal consequences. Penalties for not displaying a business license can be treated as a criminal offense and may include misdemeanor charges, monetary fines, possible imprisonment, and suspension of the business license by the Michigan Department of Treasury.

The Michigan Department Of Treasury Key Contact Information

Contact the Michigan Department of Treasury at the following address if you have questions regarding your Sales Tax License:

Poat Office Box 30778
Lansing, Michigan 48909-8278

Contact phone number: 517-636-6925.

Business hours: Monday to Friday (8 A.M. to 5 P.M. Eastern Time).

Frequently Asked Questions