How Much Is a Sales Tax License in Michigan?

A Michigan sales tax license, issued by the Department of Treasury, authorizes a business to collect sales tax on taxable goods and services sold to customers. This registration is a requirement for most businesses engaged in retail sales within the state, as operating without this license is not permitted.

Cost of a Michigan Sales tax License

There is no fee to obtain a Michigan sales tax license, as the registration is free for businesses. While the license is provided at no cost, business owners should account for other potential startup expenses, which are separate from the state’s sales tax registration.

The sales tax license does not require a renewal fee. Its validity is maintained through the timely filing of sales tax returns as determined by the Michigan Department of Treasury. The state will assign a filing frequency, such as monthly, quarterly, or annually, based on the business’s sales volume.

Information Required for Registration

To ensure a smooth process, applicants should gather all necessary information before starting. The state uses Form 518, Registration for Michigan Taxes, as the basis for registration, and having the correct details on hand prevents delays.

Applicants will need to provide:

• A Federal Employer Identification Number (FEIN), or a Social Security Number for sole proprietors without employees
• The legal business name and any “doing business as” (DBA) names
• The business’s physical address and mailing address
• Details about the business structure, such as a sole proprietorship, LLC, or corporation
• The names and addresses of owners, partners, or corporate officers
• The date the business will begin making taxable sales in Michigan
• A North American Industry Classification System (NAICS) code, which classifies businesses by activity

How to Register for Your License

A business can register for its sales tax license online or by mail. The most efficient method is through the Michigan Treasury Online (MTO) portal. To use this system, you must create a user profile on the MTO website and then navigate to the option to register a new business.

The online process guides the applicant through the necessary steps to complete the electronic registration. A benefit of online registration is that applicants often receive their sales tax license number almost immediately, sometimes within 10 to 15 minutes of submission.

Alternatively, a business can register by mail. This involves downloading and completing Form 518, Registration for Michigan Taxes. The completed form must be mailed to the Michigan Department of Treasury at the address specified on the form. This method takes longer, with processing times ranging from four to six weeks.