Michigan Business License: Who Needs One & How to Apply (2025)

What Is a Business License in Michigan?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately.

So, if there isn’t a “general business license” in Michigan, what exactly is there?

Well, Michigan — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do.

For example:

• A bakery in Grand Rapids will need a Food Establishment License from the Michigan Department of Agriculture.
• A hair salon in Detroit will need professional Cosmetology Licenses for stylists from LARA.
• An online retailer shipping products from Ann Arbor will need a Sales Tax License from the Michigan Department of Treasury, even if they don’t have a physical storefront.
• A home-based accounting business in Kalamazoo will likely need a CPA license from the state and should check with the city’s planning department regarding any local zoning requirements for home-based businesses.

Do I Need a Michigan Business License?

The answer to this will ultimately depend on what you do, and where you’re located. You can have a look at our table below in order to get a general idea:

Michigan Business Licensing at a Glance

Jurisdiction	License Type	Who Needs It & Where to Apply
Local	Health Permits Zoning Permits Occupancy Certificates Industry-Specific Permits, etc.	Varies by location Contact your county clerk to determine local requirements.
State	Sales Tax License	Businesses selling physical products or taxable services Apply via Michigan Treasury Online
	Professional License	Regulated occupations (accountants, contractors, cosmetologists, etc.) Apply via the Department of Licensing and Regulatory Affairs (LARA)’s MiPLUS system
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., food, liquor, cannabis, childcare) Apply through the relevant bureau of LARA
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.

How to Get a Business License in Michigan

The process of obtaining a business license in Michigan will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend registering your business with the state before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and other types of business financing 

For most small businesses, an LLC provides good liability protection without the complexity of a corporation. Michigan charges a $50 filing fee for LLC formation.

Once your business is formed, apply for a Federal Employer Identification Number (EIN) through the IRS website. This free tax ID is essential for banking, licensing, and tax filings.

2. Apply for the Right Business License in Michigan

The next step is identifying which licenses or permits you’ll need to operate legally. In Michigan, licensing requirements vary based on your business’s location and industry, and they may come from your local government, the state, or a federal agency.

Below, we’ve outlined the most common types of business licenses and where to apply for them.

Michigan Local Business Licenses (City/County)

Many Michigan cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• Industry Permits: This includes, but isn’t limited to, health permits required for restaurants, food trucks, and businesses handling food products.
• Zoning Permits: You may need this in order to ensure that your business’s location is zoned appropriately and is compliant with local laws.
• Sign Permits: These can be required before installing business signage.
• Fire Department Permits: These can be necessary for businesses with public access.
• Certificate of Occupancy Permits: Required for most businesses before they can legally occupy a building or space. This verifies that the structure meets building codes and is safe for the intended use.
• Home Occupation Permits: Required for businesses operating out of a residence.

Michigan State Business Licenses

Many Michigan businesses must obtain state-level licenses or permits based on what they sell, the services they offer, or the industry they operate in. Some licenses apply broadly, while others are specific to professions or regulated industries. 

Below are the most common state-level requirements, but keep in mind that your business may need others depending on its activities.

Jump Ahead:

• Sales Tax License
• Professional Licenses
• Industry-Specific Licenses
• Environmental Permits

Michigan Sales Tax License

If your business sells tangible personal property or certain taxable services in Michigan, you’re required to collect and remit the state’s 6% sales tax. This applies to both in-store and online sales. Notably, digital goods are generally not taxable in Michigan unless they are considered prewritten computer software.

Apply With Michigan Treasury Online:

Apply Online

Fee: None

Processing Time: 7-10 business days

Ongoing Requirements:

• File regular sales tax returns (monthly, quarterly, or annually, depending on your sales volume)
• Remit collected taxes to the Michigan Department of Treasury
• Maintain accurate sales records for compliance and potential audits

Michigan Professional Licenses

If you work in a regulated profession in Michigan, you’ll need a state-issued professional license through LARA’s Bureau of Professional Licensing. This includes over 100 professions such as healthcare workers, construction trades, beauty professionals, and licensed service providers.

Common Licensed Professions:

• Healthcare: Nurses, doctors, dentists, pharmacists, physical therapists
• Construction: General contractors, electricians, plumbers, HVAC technicians
• Beauty & Wellness: Cosmetologists, barbers, massage therapists, nail technicians
• Professional Services: Real estate agents, accountants, architects, engineers

How to Apply:

• Online: LARA’s MiPLUS System
• Fees: Vary by profession
• Processing Time: 4–6 weeks after complete application

Ongoing Requirements:

• Renew your license every 1–3 years depending on profession
• Complete required continuing education (CE) hours
• Maintain professional liability insurance if required
• Report any changes to contact information or criminal history

If you’re not sure if your profession requires a license, check LARA’s complete list of licensed professions and requirements.

Industry-Specific State Licenses

Some businesses in Michigan require additional licenses based on the specific industry they operate in. These are issued by various state departments or regulatory agencies.

Here are a few common examples:

• Food Establishment License – For restaurants, food trucks, and food product businesses (regulated by MDARD).
  
• Liquor License – For selling beer, wine, or spirits (regulated by the MLCC).
  
• Cannabis Business License – For growing, processing, or selling cannabis products (regulated by the CRA).
  
• Childcare License – For child care centers and home-based providers (regulated by MiLEAP’s Child Care Licensing Bureau).
  

Environmental Permits

If your business activities may impact air, water, or land, you’ll likely need permits from the Michigan Department of Environment, Great Lakes, and Energy (EGLE). This includes manufacturers, construction companies, auto repair shops, and waste management operations.

Common Permit Types:

• Air Permits: For facilities with emissions or pollutant discharge
• Water Discharge Permits (NPDES): For businesses discharging wastewater
• Wetlands & Shoreline Permits: For work near lakes, streams, or wetlands
• Waste Management Permits: For hazardous material storage or disposal

How to Apply:

• Online: EGLE’s MiEnviro Portal
• Fees: Vary by permit type and project complexity
• Processing Time: 1–6 months depending on permit type

Ongoing Requirements:

• Renew permits periodically and submit compliance reports
• Maintain environmental records and monitoring data
• Report incidents or violations promptly

For guidance on which permits your business may need, we recommend contacting EGLE’s Environmental Assistance Center.

Federal Business Licenses for Michigan Businesses

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate.

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the US Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration. 
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the US Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Land Management.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the US Department of Transportation

Federal licenses often have longer processing times and more complex application processes than state licenses.

3. Set Up a License Renewal System

Maintaining valid licenses is just as important as obtaining them. Set up a clear system for renewals:

• Create calendar alerts 30–60 days before each expiration date. Renewal cycles vary — professional licenses may renew every 2–3 years, while local permits often renew annually.
  
• Assign a team member to track renewals. Maintain a master spreadsheet with expiration dates, renewal requirements, and fees.
  
• Budget ahead for renewal costs, especially for expensive licenses like liquor permits. Keep records of any changes to your business (e.g., address, ownership, services).
  
• Schedule continuing education or inspections well before deadlines. Store digital copies of licenses and confirmations in accessible cloud storage.
  
• Use license management software if managing multiple permits across jurisdictions. Always opt into email reminders when available.

Michigan Business License FAQs

Quick Resources

• Michigan Treasury Online
• Michigan Bureau of Professional Licensing
• Michigan State License Search
• Michigan Local Government Directory