How to Get a Business License in Michigan

Do you need a business license in Michigan?

The state of Michigan doesn’t have a general business license, but most industries have some form of licensing requirements and regulations at the local, state, or federal level.

Michigan state

The Michigan Department of Licensing and Regulatory Affairs (LARA) maintains an extensive list of business licenses and permits issued through the state, covering everything from accounting businesses and barber shops to security guards and plumbers. LARA also handles regulations like construction and building permits, in cases where your business might need these as well.

The requirements for these professional licenses vary from industry to industry. You may face fees, certifications, inspections, or other benchmarks to obtain your licenses and keep them in good standing. In most cases, businesses are also required to hold a Michigan state sales tax license in addition to their industry-specific licenses.

Local

Certain counties and municipalities in Michigan require additional licensing at the local level to legally operate a business. These local licenses and permits vary from place to place, and might be required in addition to or in place of state-level licenses, depending on your industry.

Because local licenses are location-dependent, it’s important to check with your local county or city clerk’s office to determine what city business licenses are required for your specific business, even if your industry is not regulated at the state level.

Federal

Federal business licenses are overseen by the U.S. Small Business Administration, and are industry-specific much like local and state licenses in Michigan. Federal business licenses are required for certain businesses including agricultural operations, broadcasting companies, firearms manufacturers and sellers, and many others.

While you are investigating the required local and state licenses required for your new business, check the SBA’s list of regulated industries to ensure your business is conforming with all federal requirements as well.

How to get a business license in Michigan in 5 steps

Obtaining a Michigan business license is relatively straightforward, but you must be thorough as you navigate the process to ensure all of the requirements are met before you begin conducting business activities.

Step 1: Make a plan

Before they begin applying for licenses and permits, business owners must first determine important details about your business. Tasks like choosing a business structure should be completed prior to application, as certain types of businesses may be regulated differently than others.

Step 2: Form your business

Once you’ve got a clear picture of how your business will operate, it’s time to make things official.

This step is when you’ll choose and register a name for your business, and determine other foundational details about the company which might be referenced throughout the permitting process. If you know your company will operate under another name (or multiple names) you’ll need to register a doing business as or DBA.

You’ll also want to make sure your company’s foundational documents, typically either articles of incorporation or articles of organization, are finalized and submitted at this point before moving forward with licensing applications. 

Step 3: Research state license requirements

Because so many industries are regulated at the state level in Michigan, the actual licensing process should begin there.

Each industry-specific license is different, so in order to apply for state licenses you’ll need to find your industry on the state licensing website and follow the instructions provided there. For many industries, there is an online application wizard that will assist with the licensing process and any associated fees.

Step 4: Check for local licenses

Local license requirements vary even more widely than state regulations in Michigan. The best course of action after state licenses are dealt with is to contact your local city hall or county clerk’s office for additional guidance.

County and municipal codes are handled differently from place to place, so you may deal directly with city hall to secure the proper permits or you may be directed to a separate licensing authority for your area. This is more often the case in cities and larger towns, where the volume of licensing requests is higher than in more rural areas.

Step 5: Secure federal licenses

The final step in securing all the necessary licenses for your business is at the federal level. This part of the process is relatively straightforward, as the SBA has a clear, concise list of industries that must secure federal licenses to operate.

If you find your industry on the SBA’s list, simply follow the steps outlined on the SBA website to ensure your license application is submitted properly. These applications have varying requirements based on industry, and as is the case with state-level licenses in Michigan they may have an automated assistant to help you understand the application and any accompanying fees your business may be required to pay.

After getting your Michigan business license

Once your business has secured the necessary licenses to operate legally in Michigan, there are a few ongoing requirements that must be met to remain in compliance and keep your licenses in good standing.

Michigan businesses are required to display any business licenses they possess in their primary place of business, as well as copies of the licenses in a readily accessible place for inspections.

Beyond that, some types of business licenses must be renewed or reapplied for in order to remain in good standing. A license’s duration varies from industry to industry, and can range from a year or two to a lifetime license as long as the business remains in good standing. When applying for business licenses in Michigan, it’s a good idea to make note of any renewal requirements or annual fees that might accompany the license.

Getting a MI business license the easy way

The process of securing a business license or licenses in Michigan is relatively straightforward, but a missed detail or incorrect form can have serious consequences down the road for your business.

If you want to ensure the process is followed correctly and no important forms or fees have been overlooked, LegalZoom offers a comprehensive business licensing service that will take the guesswork out of the process. Using our licensing experts ensures your company will have its licensing ducks in a row while you focus on serving your customers and growing your small business.

FAQs

What should I do before getting a business license?

Before you apply for business licenses in Michigan, make sure your business structure and business plan are in working order. Digging into important details like choosing a Michigan business name and properly structuring your business to suit your needs will make the application process much easier, and reduce the likelihood of having to repeat any steps in the process.

How much is a business license in Michigan?

Business licenses in Michigan can vary widely in their costs, and it all depends on the industry in which your business is operating. The most straightforward licenses typically don’t cost anything, but some industries have additional requirements and can cost hundreds of dollars to properly license. For a more accurate understanding of license fees in Michigan, contact either the state Licensing and Regulation Department or your local clerk of court.

How long does it take to get a business license in Michigan?

Much like industry-related fees, the turnaround time for business licenses in Michigan is largely dependent on the type of business you run. Different industries have different levels of scrutiny associated with licenses, and other factors like staffing and caseload can have an impact on how quickly you receive a license. In some industries, you may be approved in as little as one week while other industries may have significantly longer wait times.