One of the critical aspects of setting up a successful business in Michigan is navigating the process of obtaining the necessary licenses and permits. These legal prerequisites ensure that your business operations comply with Michigan regulations, protect your investment, and minimize potential liabilities. Business licenses and permits are as important as registering your business. If you want to start a business in Michigan, you must obtain diverse licenses and permits to run the business.
One must know that registering the business and applying for licenses are not the same in Michigan. There might be some businesses that need to be registered but do not need any licenses or permits. For example, for a graphic designing business, if you create an LLC in Michigan, you must register your LLC with the secretary of state. Still, you don’t mandatorily need to obtain a business license. Michigan, popularly knowns as The Great Lakes State, has some rules and regulations when it comes to starting a business. You need to apply for state and federal licenses. In many states, you might also need local licenses based on the nature of your business.
In this article, we will explore the ins and outs of applying for business licenses and permits in Michigan. To ensure a smooth application process, we recommend reading this article in its entirety before proceeding with your license applications.
What is Business License and Permit in Michigan
If you’re running a business or are willing to start one, you must know about the licenses and permits. A business license is permission from the government to operate a business of any nature in Michigan. Typically, as a driver’s license allows you to drive your car, a business license allows you to run your business.
Business licenses are different from business registration. The registration process depends on the structure of your business, for example, Michigan LLC. But a business license depends on your industry. For example, a graphic designer may not need to get a license but must register their business in Michigan. So, your LLC might not need a specific license, but if you are selling medical cannabis, you must get the proper license for it.
Most states in the United States need a general business license. Michigan is one of those states where businesses do not need to obtain this license. Besides, you must get state and federal licenses.
What Do You Need Before You Apply For Business Licenses and Permits
If you’re in the initial step of forming an LLC or any business, you must wait until your business registration in Michigan is done. Once you are done with all the steps to file your business in Michigan, you must be ready with the following documents to apply for the business licenses,
- Name of your business
- Type of your business (Corporation, Partnership, or LLC)
- Phone & Address of your business
- Your business plan that has revenue and expenses
- EIN (Employment Identification Number)
You may need other types of documents before you apply for the business licenses, depending on the business nature. Checking with the local city/county authorities for better information is recommended for clearer information.
–LLCBuddy Editorial Team
How to Apply for Business Licenses and Permits in Michigan
In Michigan, applying for business licenses and permits is easy. Before applying for it, check with the local authority for license requirements. Here, we have shared three broad categories of licenses. One, State permits and licenses. Two, federal licenses, and finally, a professional license.
Step 1: Get State Licenses and Permits in Michigan
Obviously, the state where you will conduct your business must have some license requirements. You need to search for the required permits and licenses in the state. Businesses must apply to the Michigan Department of Licensing and Regulatory Affairs for state licenses. You can search for business licenses in several ways. Read about how to do a business license search to know the process and requirements.
In some states, it is mandatory to get a privileged license. Michigan is no doubt a business-friendly state. It is one of the states that do not need to get the privilege license. Businesses must go to the official website of the Michigan Department of Licensing and Regulatory Affairs and search for the licenses and permits they require based on their business.
Step 2: Get Federal Licenses and Permits
Once you’re done applying for State licenses, it is time to apply for Federal business licenses. Following are the licenses one must have if they are conducting business in the following fields,
- Agriculture: License issued by The U.S. Department of Agriculture
- Aviation: License issued by The Federal Aviation Administration
- Alcohol & Tobacco: License issued by The Alcohol and Tobacco Tax and Trade Bureau
- Ammunition, Explosive, & Firearms: License issued by The Bureau of Alcohol, Tobacco, Firearms, and Explosives.
- Radio & Television (Broadcast): License issued by The Federal Communications Commission
- Mining & Drilling: License issued by The Bureau of Safety and Environmental Enforcement
- Commercial Fisheries: License issued by The National Oceanic and Atmospheric Administration Fisheries Service
- Wildlife & Fisheries: License issued by The U.S. Fish and Wildlife Service
- Nuclear Energy: License issued by The U.S. Nuclear Regulatory Commission
- Transportation by Sea: License issued by The Federal Maritime Commission
If your business belongs to any of the industries mentioned above, you must obtain state as well as federal licenses.
Step 3: Search for Other State Permits and Licenses in Michigan
Apart from general business licenses and privilege licenses, there might be other licenses and permits that businesses must obtain in Michigan. As I mentioned, business licenses solely depend on the type of industry you are in. Different states have different licensing policies. You must go to the official website of the Michigan Department of Licensing and Regulatory Affairs to find out the special licenses your business needs.
You will also find the probate offices in Michigan through the Michigan Department of Licensing and Regulatory Affairs website. You can drop by the probate office and find out the details about your licenses. Some common permits, such as building permits, health permits, signage permits, zoning permits, and environmental permits, are required if you’re in a related industry.
Step 4: City-based Permits and Licenses in Michigan
Now, it’s time to consider local authority requirements. Once you’ve completed federal and state formalities, you should check with your local city authorities for any additional permits that may be required. In some cases, certain permits might be issued by local government offices rather than state or federal agencies. As a result, it’s essential to visit your local government office soon after setting up your business to apply for any necessary permits.
Keep in mind that you may come across some licenses that may not seem directly related to your profession. For example, you might not think you need a health permit as a hairstylist. However, it might be a requirement in your city. Such permits help protect you and your fellow Michigan entrepreneurs from potential legal issues.
Step 5: Home-based Business Licence in Michigan
The licensing is different if your business is home-based in Michigan. An initial inspection takes place based on the type of business you are conducting from your home. For example, if you are selling homemade edibles, then it is necessary to check the place’s hygiene. Michigan state and local authorities will visit your home to check if things are good and hygienic. Based on that, you will get the permit or license to run a home-based business in Michigan.
Home-based business licenses are issued on the basis of the nature of your business. Issuance, expiration, and renewal of this type of license are different from conventional state and federal licenses. To know more about home-based business license requirements, do pay a visit to the local revenue office.
Step 6: Get a Professional License in Michigan
This is a special type of license. A professional license is issued only to those with special education, training, and degree. For example, teachers, nurses, doctors, and engineers are eligible to get this license.
In Michigan, professionals like doctors, engineers, teachers, and nurses obtain this license to start working independently in these fields. Professional Licenses are issued by the Michigan Department of Licensing and Regulatory Affairs and only to those with special education, degree, and/or training.
How to Maintain Your Business Licenses in Michigan
In Michigan, businesses typically need to maintain two types of licenses: general state and federal licenses and professional licenses. General state and federal licenses usually expire after one year and are automatically renewed, provided the business is in good standing. Once expired, entrepreneurs must pay the annual fees to renew these licenses.
The rules for professional licenses in Michigan are slightly different. In order to maintain or renew a professional license, individuals often need to complete continuing education requirements. For example, a doctor with a professional license must continue studying and training to stay up-to-date with new medical technology and treatments. The professional can renew their license after finishing the required training or education.
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Why Michigan Licenses Permits is So Important
First and foremost, licenses and permits serve as a way to regulate various industries and activities in Michigan. By obtaining the appropriate license or permit, individuals and businesses are required to adhere to certain standards and regulations set forth by the state. This not only helps to ensure that these entities are operating in a safe and legal manner, but also helps to protect consumers and the general public from potential harm or exploitation.
Additionally, licenses and permits play a key role in maintaining the integrity and reputation of various professions and trades in Michigan. By requiring individuals to obtain the necessary licenses and permits before practicing certain professions or engaging in specific activities, the state is able to ensure that only qualified and competent individuals are allowed to operate within these fields. This helps to protect consumers from unscrupulous individuals who may try to take advantage of them, and also helps to uphold the quality and standards of these industries.
Furthermore, licenses and permits are essential for ensuring that businesses and individuals are operating in compliance with state and local regulations in Michigan. By requiring individuals and businesses to obtain the appropriate licenses and permits, the state is able to monitor and regulate various activities and industries, ensuring that they are being conducted in a safe and legal manner. This helps to prevent issues such as fraud, illegal activities, and environmental damage, as well as helping to ensure that businesses are abiding by all relevant laws and regulations.
In addition to all of these practical reasons, licenses and permits also hold a symbolic importance in Michigan. They serve as a symbol of professionalism, trustworthiness, and legitimacy, signaling to consumers and the public that an individual or business has met certain standards and qualifications. This helps to build trust between businesses and consumers, and helps to maintain the overall integrity of various industries and professions in the state.
Overall, licenses and permits are essential for maintaining the safety, integrity, and reputation of various professions, industries, and activities in Michigan. By requiring individuals and businesses to obtain these important documents, the state is able to regulate and monitor various activities, protect consumers and the public, and uphold the quality and standards of various industries. Therefore, it is crucial that individuals and businesses in Michigan take the necessary steps to obtain the appropriate licenses and permits, in order to ensure that they are operating in a safe, legal, and professional manner.
Conclusion
In conclusion, the business licenses required in Michigan largely depend on the nature of your enterprise. While some state-specific requirements may exist, the type of business ultimately determines the necessary licenses. Some businesses might not need any licenses or permits to operate. To ensure compliance, it is strongly advised to consult with local authorities about any required licenses and permits for conducting business in your specific city or county within Michigan.