May 05, 2025

Help keep local news alive—donate to support our community reporting!Donate

Entrepreneur getting a Michigan business license.

Ashley Hiser

Home » The Business Center » Michigan Business License Guide (2025)

Michigan Business License Guide (2025)

Small Business

If you’re thinking about starting a business in Michigan and are wondering whether you’ll need a business license, the answer is: probably, but this will ultimately depend on what type of business you are starting, where your business will operate, and what industry your business will be based in.

In this Michigan Business License guide, we’ll help you understand the specific licenses and permits you may need to operate your business legally in Michigan, as well as provide guidance on how to obtain them.

Michigan Business License Basics

For the busy entrepreneur, here’s the quick rundown:

  • There’s no single, universal “business license” in Michigan
  • What you need depends on your business type, location, and industry
  • Some businesses need multiple permits, while others (especially home-based online businesses) may need very little
  • Local, state, and federal requirements can all come into play

Recommended For New Business Owners

We recommend registering your business as an LLC before getting your business license(s) in order to avoid potentially having to repeat the process later on. To get started, you can use a trusted LLC formation service.

Northwest Registered Agent ($29 + State Fees)

Do I Need a Business License in Michigan?

Whether you need a license or permit comes down to three main factors: what you’re selling, where you’re operating, and what industry you’re in. Here’s what you need to know: 

Business Type

Depending on the nature of your business and the specific products or services you will offer, there are a number of licenses and permits that you may need to obtain. 

These are some common business types and their licensing requirements: 

Business Location

Depending on where your business will be physically located within Michigan, there are also a variety of permits and licenses that you may need to obtain. 

Here are some of the most common location-based licenses to know: 

  • City-Based Businesses: If you’re in Detroit, Grand Rapids, or other Michigan cities, you’ll typically need to get a local business operating license from your city government.
  • Home-Based Businesses: Running your business from home? Most local zoning departments require a Home Occupation Permit to make sure your business activities don’t disrupt the neighborhood.
  • Commercial Spaces: If you’re leasing a storefront or office, you’ll need a Certificate of Occupancy that confirms your space meets all building and safety codes.

Business Industry

Depending on the specific industry your business will operate in, there are additional licenses and permits that you may need to secure. 

These are some of the common industry licensing examples to know: 

Important Tip: Not sure which state licenses apply to your business? LARA’s Business License search tool makes it easy. Just search your business type or industry keyword (like “retail,” “restaurant,” or “contractor”).

How to Get a Business License in Michigan

If you’re ready to get started, here’s the steps you’ll need to take to properly register and license your new business. 

Step 1: Form Your Business 

Before getting licenses, you will need to register your business with the state of Michigan. We recommend forming an LLC for most small businesses because it is relatively simple to set up and maintain, and it will protect your personal assets in the event of a lawsuit or business debt.

Quick LLC Formation Checklist

  • Pick a name that follows Michigan naming rules
  • File your Articles of Organization with LARA
  • Pay the $50 filing fee
  • Create an operating agreement (not required to file but important to have)

Want more details? Check out our complete How to Start an LLC in Michigan guide.

Step 2: Obtain an EIN 

You can think of an Employer Identification Number (EIN) as a social security number for your business. You’ll need this number to hire employees, open a business bank account, file taxes, and apply for most licenses. 

How to Get an EIN

  • Visit the IRS website and click the EIN Online Application
  • Fill out the online application (Form SS-4)
  • Submit your application (it’s free!)
  • Get your EIN instantly

Important Tip: While you can apply by mail or fax, the online application is much faster. Mail applications can take 4-5 weeks, while fax applications take up to 2 weeks.

Step 3: Apply for All Applicable Licenses and Permits

Now that you have your business formation and EIN squared away, you can start obtaining the specific licenses and permits your business needs.

Your License Application Checklist

  • Research the specific requirements for your business at the local, state, and federal levels
  • Gather your documents (business formation documents, EIN, ID, etc.)
  • Complete each application
  • Pay the fees (these range from $10 to several hundred dollars)
  • Submit to the appropriate agencies

Important Tip: Processing times can vary significantly; some licenses can be approved in just a few days while others may take several weeks or even months.

Step 4: Maintain and Renew Your Licenses

Once your business is up and running, you’ll need to keep your licenses and permits active by renewing them periodically (usually every one to two years).

Common License Renewal Dates

  • Sales Tax Licenses/Seller’s Permit: Renew your seller’s permit annually by February 28th (or monthly/quarterly by the 20th after your reporting period ends) through the Michigan Treasury Online portal
  • Professional Licenses: Most renew every 2-3 years through MiPLUS, with fees typically between $50-$200
  • Local Business Permits: Usually renew annually, often within 30 days of when they were originally issued
  • Food Licenses: Renew yearly after passing a health inspection

Important Tip: Michigan state agencies usually send renewal notices 45-60 days before expiration, but it’s your responsibility to ensure renewals are done on time (late renewals may incur additional fees of 50-100%).

Bottom Line

There’s no single “business license” in Michigan. The specific licenses and permits you’ll need will depend on your business type, location, and industry.

For most small businesses, you’ll need to first form your business structure (preferably an LLC for liability protection), obtain an EIN, and then apply for the appropriate licenses at local, state, and federal levels.

You’ll then need to make sure that you renew your licenses on time in order to avoid financial penalties. 

More Michigan Business Resources