Starting a business in Michigan is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a sales tax license in Michigan, also known as a sales tax permit or seller’s permit. This allows you to collect sales tax on taxable products and services from customers in Michigan and remit it to the state.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Who Needs a Seller’s Permit in Michigan?
A business must register for a sales tax permit in Michigan if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Michigan
How to Register for a Seller’s Permit in Michigan?
When applying for a sales tax license in Michigan, you can use the online application process on the Michigan Department of Treasury’s website to complete your sales tax registration.1. Where can you Apply for a Seller’s Permit in Michigan?
The first step is to register your business at the Michigan Treasury Online by clicking the title “Create My User Profile.” During your registration process, you will create an online login account with the State. Once your GTC logon is created, you can manage your current sales tax account(s) and register for additional accounts related to your business.2. What Information do you Need to Get a Seller’s Permit in Georgia?
To successfully acquire a seller’s permit in Michigan, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Michigan:- Business Identification Information: Legal business name, physical address, mailing address
- Business Entity Structure (i.e., sole proprietorship, partnership, Subchapter S Corp., corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, Driver’s License and SSN of owners, partners, or officers
- Business Activity Details: Date & State of Incorporation, start date with the state of Michigan (nexus start date), Estimated Monthly Sales Tax Liability in Michigan, Month of Fiscal Year End
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Michigan?
Registering for a sales tax permit in Michigan is free and you won’t need to provide payment details to acquire your permit. The state charges a non-refundable registration fee. Michigan sales tax permit is issued yearly and is valid from January to December of the tax year listed. It also needs to be renewed every year.4. What Are Other Ways To Register For A Seller’s Permit In Michigan?
- Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.
- Paper Application: You will need to fill out Form 518- Registration for Michigan Business Taxes, attach the necessary documents, and mail them to the address provided on the form.