Starting a business in Michigan can appear as a daunting task to do, especially if you are inexperienced in this sort of thing. But, let us assure you, that it really is not. If you know what to do, the process is rather simple. Here are 5 tips to help you start a business in Michigan.
Start With a Federal Employer Identification Number
FEIN is a very important number. This is, in fact, a tax ID, or if you prefer a sort of business’s social security number. You will be asked to provide it when you try to open a checking account or a credit card account with a vendor. The process is straightforward. You can find the instructions here.
Register the Business Name
You will have to visit the County Clerk office in Michigan and register your business name. Don’t get confused as officials refer to your business name as an “assumed name”.
Open UIA Account
Opening an Unemployment Insurance Account is easy. You will have to visit the official website of the Michigan Department of Licensing and Regulatory Affairs. You have to do this before you are able to hire anyone.
You will be asked for your UIA account number when you are filing your tax reports. This is a good point to get some side insurance as well. Michigan small business insurer can help you decide the best course of action to run a safe operation.
Legitimize your Business – Get Sales Tax License
We are aware that you might be targeting nontaxable sales. But it is important to do everything you can to legitimize your business. This is why you have to get a sales tax license. This will also create some new business opportunities for you.
For instance, you can purchase items for a vendor for a resale without paying sales taxes to that vendor. Getting a sales tax license is very easy, you just need to fill out this form.
Registration and Permits
Finally, you will have to register your business with the Michigan Department of Treasury. What’s the benefit of doing it? You will be able to make collected tax payments. You will also have to research whether your business model requires any special permits, apply for those and get them before opening your doors.
This covers everything you need to do to start a business in Michigan.