Are you looking to start your own business in Michigan? Be sure to check off every question on this checklist to make sure you’re starting your business on the right foot.
Have you chosen a business structure?
The standard business structures in Michigan are corporations, LLCs, and sole proprietorships. Sole proprietorships are simpler, but the owner is responsible for all business debts and legal matters. LLCs (Limited Liability Companies) give your business less tax and liability, but business income must be noted on the tax returns of the business owner. Corporations are more complex and more suited for larger businesses. They tend to be suited to companies with shareholders, so they’re best formed under the supervision of a lawyer and a tax professional.
Do you have an EIN?
You’ll need to get your federal tax ID number in Michigan to set up your business with a unique and definable number. This identification number can be used for tax purposes and more, and it’s a requirement for many businesses, especially ones that plan to hire staff.
Have you chosen a name?
Choosing the right business name is a fine art that not everyone gets right immediately. It needs to be creative and engaging while allowing people to know exactly what you offer at the same time. It also needs to be a company name that you’re proud to carry from day one into the next few decades, so choose wisely.
You’ll also need to check out the Michigan business entity database to make sure the name isn’t already registered in the area. Then it’s always a good idea to look at conduct a trademark search with the U.S. Patent and Trademark Office.
Have you registered your business properly?
A Michigan business needs to be registered with the county or state, although this will depend based on the type of business structure you have. For a sole proprietorship, you won’t have to register with the state, but if you want to operate under a name different from your legal name, you’ll need to register that name with the county you work in. An LLC must file Articles of Organization with the Michigan Corporations Division and appoint an agent to receive legal notices and documents to their address regarding the business.
Forming a corporation in Michigan requires the filing of Articles of Incorporation with Michigan’s Department of Licensing and Regulatory Affairs. These filings can be extensive and detailed, so be sure to prepare accordingly.
Do you have the right permits and licenses?
Once the above has been completed, you can begin to apply for the necessary licenses, permits, and other essentials for your business to thrive and remain legally compliant. The number of licenses needed ultimately depends on the type of business you run.
For example, a restaurant will need several health permits while a new space that’s being altered will need permissions and building permits, etc. The products you sell may also play a part in determining the licenses you need.
Sticking to this checklist will help you to stay focused, compliant, and prepared for the future launch of your successful Michigan business.