Where do I check if my profession needs a Michigan license?

Use the State of Michigan State License Search and LARA's licensing pages to confirm whether your occupation is regulated. LARA licenses many professions, from contractors to health and cosmetology fields.

How to Get a Business License in Michigan (2026)

Q: How much does a Michigan business license cost?

There is no fee for the state tax registration that produces a sales tax license. Professional and occupational licenses through LARA carry their own fees that vary by profession, and local permit costs are set by each city or county.

Q: Do I need a license to run an LLC in Michigan?

Forming the LLC with LARA is not a license. Whether you need a license depends on what you do: sales tax registration for taxable sales, a LARA professional license for regulated fields, and local permits set by your city or county.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Michigan has no single statewide general business license. What you need depends on your activity: a sales tax license (free, via Form 518) if you sell taxable goods, a LARA professional or occupational license for regulated fields, and any local city or county permits. Register for state taxes through Michigan Treasury Online at no charge.

Quick Answer

General state license?: No - Michigan has no single general business license
Sales tax license: Required to sell taxable goods; register on Form 518 (no fee)
Sales tax rate: 6% collected on taxable sales
Professional license: Through LARA for regulated occupations (fees vary)
Local permits: Set by your city or county
Where to register: Michigan Treasury Online or Form 518

Michigan Has No General Business License

Michigan does not issue a single, all-purpose state business license that every company must hold. Forming your entity - filing the Articles of Organization for an LLC with the LARA Corporations Division - creates the business but is not itself a license. As LARA explains, the Corporations Division files the legal documents that create and maintain entities; it does not "license" them to operate. Instead, Michigan licensing is activity-based: you obtain only the specific registrations, licenses, and permits your particular business actually triggers. For the national overview, see the business license overview.

This trips up new owners who expect a single "business license" to buy and display. In Michigan there is no such document and no state office that issues one for businesses generally. The practical effect is that two Michigan companies can have completely different obligations: an online reseller needs a sales tax license but no professional license, while a licensed electrician needs a LARA trade license and may also collect sales tax on materials. Rather than asking "how do I get a Michigan business license," the productive question is "which specific registrations does my activity require," and then obtaining exactly those.

Three Layers of Michigan Requirements

Most Michigan businesses face up to three separate layers, and you only deal with the ones your activity triggers:

State tax registration. If you sell taxable goods or services, register for sales tax; if you have employees, register for withholding.
State professional or occupational license. Regulated occupations - such as contractors, cosmetologists, and many health fields - are licensed by LARA.
Local permits. Cities and counties may require zoning approval, a local business registration, health permits, or signage permits.

Start by forming the entity itself: see how to form an LLC in Michigan, then work through the layers below.

The Sales Tax License (Closest Thing to a State License)

The registration most new Michigan businesses need is the sales tax license. If your business sells tangible personal property at retail, Michigan requires you to register for and collect the 6% sales tax before making sales. You register on the Michigan Business Taxes Registration (Form 518) or through Michigan Treasury Online, and the state issues a sales tax license at no fee. The same registration covers use tax and withholding if those apply. You will need a federal EIN to register, so get that from the IRS first.

Registering also enrolls the LLC in the Treasury's filing system, so after you hold the sales tax license you file periodic sales tax returns - monthly, quarterly, or annually - on the schedule the Treasury assigns based on your volume. The license itself does not expire on a fixed calendar the way some state licenses do, but you must keep the account active and file even for periods with no sales, reporting zero. If you stop selling, close the sales tax account as part of winding down; leaving it open generates expected returns. The registration is free at every stage, so the only real cost of the sales tax license is the discipline of collecting and remitting the 6% you charge customers.

Michigan Registrations and Where to Get Them (2026)

The table below maps common Michigan business requirements to the agency and cost, verified against the Michigan Department of Treasury and LARA.

Requirement	When it applies	Cost	Agency
Sales tax license (Form 518)	Selling taxable goods	No state fee	Treasury
Withholding registration (Form 518)	Having employees	No state fee	Treasury
Professional / occupational license	Regulated occupation	Varies by profession	LARA
Local business permit / zoning	Many cities/counties	Set locally	City / county
Federal EIN	Most businesses	$0 (free)	IRS

Only the requirements matching your activity apply. A home-based consultant with no taxable sales and no employees may need none of the state registrations, only local zoning compliance.

Professional and Occupational Licenses

Michigan licenses many occupations through LARA rather than through a general business license. If your work falls in a regulated field - for example, building trades, real estate, accounting, cosmetology, or health care - you or your staff must hold the applicable state license before operating. LARA's Licensing Division determines eligibility, administers exams where required, and tracks continuing education. Fees vary by profession and are set by each licensing program. Confirm whether your occupation is regulated before you begin, because operating an unlicensed regulated activity carries penalties independent of your entity's good standing.

Professional licensing attaches to the people doing the regulated work, not just to the LLC. A construction company, for instance, needs a licensed builder; a salon needs licensed cosmetologists; a clinic needs licensed clinicians. Forming an LLC does not substitute for these individual credentials, and the LLC cannot perform regulated services simply because it is registered with LARA's Corporations Division. Continuing education and renewal cycles apply to most professional licenses, so budget both the initial fees and the ongoing upkeep. When in doubt about whether your field is regulated, verify before you advertise or take on work, because enforcement can reach both the individual and the business.

Local City and County Permits

Local governments in Michigan set their own permit rules, so requirements differ by location. A city or county may require zoning or land-use approval, a local business registration, a health department permit for food service, a sign permit, or a home-occupation permit. These are separate from anything the state issues. Check with the clerk or building department of the specific city, township, or county where you operate. Because rules and fees are strictly local, verify them directly with that jurisdiction rather than assuming a statewide standard applies.

How to Confirm What You Need

To confirm your Michigan requirements, work top-down. First, register for state taxes on Form 518 or Michigan Treasury Online if you will sell taxable goods or hire employees. Second, use the State of Michigan State License Search and LARA's licensing pages to check whether your occupation is regulated. Third, contact your local city or county for zoning and permit rules. Keep proof of each registration with your company records, and renew licenses and permits on their own schedules. See Michigan LLC annual statement and taxes for the ongoing state filings that sit alongside these licenses.

A short checklist keeps the layers organized. Confirm your entity is formed and in good standing with LARA; register for sales tax and withholding on Form 518 if either applies; identify and obtain any LARA professional license your work requires; and clear local zoning and permit rules with your city, township, or county. Note the renewal date for each item, since state professional licenses and many local permits expire on their own cycles even though the sales tax registration does not. Doing this once at startup, then reviewing it whenever you add a product line, a location, or an employee, prevents gaps that can surface during an audit, a lease signing, or a financing request.

Risks of Operating Without Required Licenses

Skipping a required Michigan registration or license carries real risk. Selling taxable goods without registering for the 6% sales tax exposes the business to assessed tax, penalties, and interest from the Michigan Department of Treasury. Practicing a regulated profession without the required LARA license can bring fines and cease-and-desist action. Ignoring local zoning or permit rules can trigger municipal fines or forced closure. None of these consequences depend on whether your LLC is in good standing with LARA - they are separate obligations, so address each layer that applies to your business.

The independence of these obligations is the key takeaway. An LLC can be in perfect standing with LARA - every annual statement filed, resident agent current - and still operate unlawfully if it sells taxable goods without a sales tax license or practices a regulated trade without the required professional license. Conversely, holding a sales tax license does not keep the entity in good standing if the annual statement lapses. Treat entity compliance, tax registration, professional licensing, and local permitting as four separate checklists, each with its own agency, cost, and renewal schedule, and keep current the ones that apply to what you actually do.

Frequently Asked Questions

Does Michigan require a general business license?

No. Michigan has no single statewide general business license. Requirements depend on activity: a sales tax license for taxable sales, a LARA professional license for regulated occupations, and local permits.

How do I get a sales tax license in Michigan?

Register for Michigan taxes on Form 518 or through Michigan Treasury Online. Registering for sales tax issues a sales tax license at no state fee and lets you collect the 6% sales tax.

How much does a Michigan business license cost?

The state tax registration that produces a sales tax license has no fee. LARA professional licenses carry their own fees that vary by profession, and local permit costs are set by each city or county.

Do I need a license to run an LLC in Michigan?

Forming the LLC is not a license. Whether you need one depends on your activity: sales tax registration for taxable sales, a LARA professional license for regulated fields, and any local permits.

Where do I check if my profession needs a license?

Use the State of Michigan State License Search and LARA's licensing pages to confirm whether your occupation is regulated, from contractors to health and cosmetology fields.

Sources

Michigan Treasury - New Business Registration (Form 518; Michigan Treasury Online; sales tax license).
Michigan Treasury - Registration FAQs (who must register; sales tax license).
Michigan Treasury - Sales and Use Taxes (6% sales tax).
Michigan Treasury - Form 518, Michigan Business Taxes Registration (PDF).
Michigan LARA - Corporations Division FAQs (Corporations Division does not license businesses).
Michigan LARA - Licensing Division (professional and occupational licensing).
Michigan LARA - Licensing & Permits.
Michigan LARA - Find / Verify a Licensed Professional or Business.
State of Michigan - State License Search.
IRS - Get an Employer Identification Number (free EIN, needed to register).
Cornell LII - License (Wex legal definition).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and requirements change; verify current requirements with the Michigan Department of Treasury, LARA, and your local government before acting.