Michigan doesn't hand out one business license to cover you across the state. What you need is licenses from your city, your industry, and sometimes both.
Most businesses run into some combination of a local license, a state occupational license if their trade is regulated, and sales tax registration if they sell taxable goods or services. Which of these apply depends entirely on where you operate and what your business actually does.
So how do you actually figure out which ones apply to you? You can dig through it yourself, checking your city clerk's site, LARA's licensing pages, and the Treasury's sales tax rules separately. It's doable, but Michigan splits this across enough agencies and cities that it's easy to miss something, especially with cities that handle licensing so differently from one another.
Or you can bring in a professional to identify every license your business needs and guide you through the paperwork, so you're not stitching it together from five different websites.
Here's what getting licensed in Michigan actually looks like, city by city, so you know exactly what applies to your business.
Key Takeaways
- Local licensing varies sharply by city. Wyoming requires a general business license for most businesses, while Detroit and Lansing license only designated business types, and Grand Rapids requires a Home Occupation License for home businesses that host clients.[6][8][10][11]
- Electricians, cosmetologists, contractors, and similar trades need a license through the Michigan Department of Licensing and Regulatory Affairs (LARA).[1]
- Businesses selling taxable goods or services register with Form 518, at no cost.[4]
- Federal licenses are only required for federally regulated industries, such as aviation, firearms, or alcohol.[15]
- LLCs and corporations register through LARA’s MiBusiness Registry Portal (MiBRP), which replaced the state’s prior filing system in June 2025.[3]
- Home-based food businesses can sell up to $50,000 a year (up to $75,000 for higher-priced items) without a license, and online sales are allowed under Public Act 51 of 2025.[12][13]
- Detroit renews business licenses every two years instead of annually, under a 2025 ordinance reform.[9]
What Is a Business License?
A business license is formal permission from a city, county, or state agency that allows you to operate in a specific place or profession legally. In Michigan, licensing is usually local or trade-specific: some cities license businesses through the city clerk's office, and many trades and professions need a separate state license through LARA.
A business license is not the same thing as registering your business entity. Forming an LLC or corporation through LARA’s MiBusiness Registry Portal (MiBRP) creates your legal business structure. A local business license, a state occupational license, and a sales tax license are separate steps you take after formation, and most active Michigan businesses need at least one of them.
Do You Need a Business License in Michigan?
It depends on your city and your industry. Michigan has no single, statewide business license, but LARA’s own licensing structure and each city’s local ordinances mean most active businesses need at least one of the following four layers of licensing.[1][2]
- Local: A business license from the city or township where you physically operate.
- State occupational or professional: Required for regulated trades such as construction, cosmetology, electrical work, and healthcare.
- State sales tax registration: Required if you sell taxable goods or services anywhere in Michigan.
- Federal: Required only if your business operates in a federally regulated industry, such as aviation, firearms, or alcohol production.
Step-by-Step: How to Get a Michigan Business License
Step 1: Register Your Business Entity
Form your LLC or corporation through LARA’s MiBusiness Registry Portal (MiBRP), which replaced the state’s prior Corporations Online Filing System in June 2025.[3] Articles of Organization for a Michigan LLC carry a $50 filing fee. If you are operating as a sole proprietor under a trade name instead, register a DBA.
Related: How to Form an LLC in Michigan | Register a DBA in Michigan
Step 2: Get an EIN
Most banks and licensing agencies will ask for a federal Employer Identification Number (EIN) before you can register for state or local licenses. An EIN is free directly from the IRS.
Step 3: Register for Michigan Sales Tax (Form 518)
If you sell or lease taxable goods or services, register with the Michigan Department of Treasury using Form 518, Registration for Michigan Taxes.[4] Registration is free. Filing online through Michigan Treasury Online (MTO) is the fastest route, typically producing a printable sales tax license in about 7 business days, compared to 4 to 6 weeks by mail.[4][5]
Step 4: Apply for State Occupational or Professional Licenses, If Applicable
Check whether your profession or trade is regulated by LARA. State occupational and industry licenses cover trades ranging from cosmetology and electrical contracting to private security and healthcare-adjacent services. Fees vary enormously by license type: simple registrations commonly run in the tens of dollars, contractor-trade licenses commonly run in the low hundreds, and specialized financial or cannabis licenses can run into the thousands. Confirm your exact fee on LARA’s license-specific fee schedule before applying.[1]
Step 5: Apply for Your Local Business License
Apply directly with the city or township where your business is located. Requirements, fees, and application processes differ significantly from one Michigan city to the next. See the city-by-city breakdown below for Detroit, Grand Rapids, Lansing, and Wyoming, and use the Michigan Townships Association or Michigan Association of County Clerks to find contacts elsewhere.[16][17]
Step 6: Check Federal Licensing Requirements
Federal licenses only apply to a short list of regulated industries. Review the U.S. Small Business Administration’s current list before assuming you need one.[15]
Step 7: Confirm Home-Based Business Rules
Running your business from home does not exempt you from licensing. Cities such as Grand Rapids require a separate Home Occupation License if clients visit your home, and zoning approval is typically a hard prerequisite everywhere. See the home-based business section below for current fees and Michigan’s Cottage Food Law.
Step 8: Renew on Time, Every Cycle
Renewal cycles vary by city and license type. Detroit renews every two years; Wyoming renews annually each January with escalating late penalties; sales tax licenses are reissued annually. See the renewal and penalty section below for specifics.
See our guide to starting a business for how these steps fit together, and our Michigan registered agent guide if you still need to appoint one for your LLC or corporation.
Business License Requirements by City
City | Requirement |
City of Wyoming | A general Business License is required for most businesses, issued by the City Clerk’s Office. Standard fee is $50 per year; specific categories carry different fees, such as $150 for a gasoline service station, $100 for an auto body repair garage, and $125 for an auto wrecking yard or scrap metal processor.[6][7] |
City of Detroit | Many business types need a license through the Business License Center (BSEED). Exact fees vary by category; confirm your current rate with BSEED before budgeting rather than relying on older published fee sheets.[8] |
City of Lansing | The Lansing City Code requires specific designated business types, including auctioneers, health clubs, secondhand dealers, street musicians, and marijuana facilities, to obtain a City License through the City Clerk’s Office.[10] |
City of Grand Rapids | Most business types apply through the City Clerk’s Office. Home-based businesses that host clients on-site need a separate Home Occupation Class B License.[11] |
What a Local Business License Actually Costs
There is no single statewide fee. Each city sets its own schedule, usually based on business category, so two businesses in the same city can pay very different amounts. A few concrete data points to budget around:
- City of Wyoming: $50 per year for most business types; $150 for gas stations; $100 for auto body repair garages; $125 for auto wrecking or scrap metal processors.[7]
- City of Grand Rapids: $634 for a first-issuance Home Occupation Class B License, and $229 for each renewal.[11]
- City of Detroit and City of Lansing: Fees are classification-based and not published as a single flat number; confirm your exact rate directly with BSEED (Detroit) or the City Clerk’s Office (Lansing) before budgeting.[8] [10]
- Sales tax license (Form 518): Free, directly through Michigan Treasury Online.[4] [5]
- Operating without a required state-regulated occupational license: A misdemeanor under Michigan’s Occupational Code, punishable by a fine of up to $500 or up to 90 days in jail, or both, for a first offense, rising to up to $1,000 or up to a year for a second offense.[14]
Home-Based Businesses and Michigan’s Cottage Food Law
Running a business from home does not exempt you from licensing. Grand Rapids requires a Home Occupation License if clients or customers visit your home, but explicitly exempts businesses that are entirely online or delivery-based from home. Zoning compliance is checked before any home occupation license is issued, so confirm your property is properly zoned with your local planning department first. [11]
If you make and sell food from home, Michigan’s Cottage Food Law allows home cottage food operations to sell up to $50,000 a year with no license, registration, or inspection required, or up to $75,000 a year if any product is priced at $250 or more per unit, under Public Act 51 of 2025, effective March 2026. Online and third-party delivery sales are allowed, provided the seller and buyer can interact before the sale completes, and delivery stays within Michigan. Sellers who want to keep their home address off product labels can register with the MSU Product Center for a one-time fee of up to $50 and use a registration number instead. [12] [13]
Michigan Business License Renewal, Deadlines, and Penalties
Milestone | Detail |
State-regulated occupation, first offense | Misdemeanor: fine up to $500, or up to 90 days in jail, or both, under Michigan’s Occupational Code, MCL 339.601.[14] |
State-regulated occupation, second offense | Misdemeanor: fine up to $1,000, or up to 1 year in jail, or both.[14] |
City of Wyoming late renewal | 25 percent penalty after 30 days past due; 50 percent penalty after 90 days.[7] |
City of Wyoming, operating unlicensed | Municipal civil infraction: $75 first offense, $250 second offense, $500 third offense.[7] |
City of Detroit renewal cycle | Biennial (every 2 years), changed from annual under a 2025 ordinance reform.[9] |
Michigan sales tax license | Issued annually, valid January through December; reprint anytime via MTO.[4][5] |
Cost Breakdown
Item | Typical Cost |
Michigan LLC or corporation formation | $50 Articles of Organization filing fee via LARA’s MiBRP[3] |
EIN (federal tax ID) | Free, directly from the IRS |
Sales tax license (Form 518) | |
Local business license | Set by each city; for example, $50 general fee in Wyoming, or $634 first-issuance Home Occupation Class B License in Grand Rapids[7] [11] |
State occupational or professional license | Varies by profession and board, commonly tens to a few hundred dollars for standard trade licenses; confirm your exact fee with LARA[1] |
Cottage food privacy registration (optional) | Up to $50 one-time, MSU Product Center[12] |
Late renewal or unlicensed-operation penalty | Varies by city and license type; for example, Wyoming charges 25 to 50 percent late penalties plus civil infraction fines of $75 to $500[7] |
Michigan Business License vs. Business Registration
These are separate filings with different agencies, and most active Michigan businesses need more than one.
Business Registration | Business License |
Creates your legal entity (LLC, corporation, or DBA) with LARA | Grants permission to operate in a specific city, township, or regulated profession |
Filed once, then maintained with periodic state filings | Renewed on a cycle set by the issuing city or board (commonly annual or biennial) |
Filed through LARA’s MiBusiness Registry Portal (MiBRP)[3] | Filed with your city clerk, LARA, or the Department of Treasury |
Let Swyft Filings Research Your Michigan License Requirements
Forming an LLC does not automatically satisfy your local business license or professional licensing requirements, and vice versa. At Swyft Filings, we provide a customized research package that identifies every license and permit your business needs, along with instructions on how to apply.
Get Your Michigan License Research Done Today!
Bibliography
- Michigan Department of Licensing and Regulatory Affairs (LARA). Find or Verify a Licensed Professional or Business. Accessed July 21, 2026.
- Michigan Department of Licensing and Regulatory Affairs (LARA). Official Department Site. Accessed July 21, 2026.
- Michigan Department of Licensing and Regulatory Affairs (LARA). MiBusiness Registry Portal (MiBRP). Accessed July 21, 2026.
- Michigan Department of Treasury. Form 518, Registration for Michigan Taxes. Accessed July 21, 2026.
- Michigan Department of Treasury. Michigan Treasury Online (MTO). Accessed July 21, 2026.
- City of Wyoming, Michigan. Business Licenses. Accessed July 21, 2026.
- City of Wyoming, Michigan. Fee Schedules. Accessed July 21, 2026.
- City of Detroit. Buildings, Safety Engineering and Environmental Department (BSEED), Business Licensing. Accessed July 21, 2026.
- BridgeDetroit. Licensing Will Be Easier for Detroit Businesses Under New Rules. Accessed July 21, 2026.
- City of Lansing. Business Licenses. Accessed July 21, 2026.
- City of Grand Rapids. Home Occupation Class B License. Accessed July 21, 2026.
- Michigan Department of Agriculture and Rural Development (MDARD). Cottage Food. Accessed July 21, 2026.
- Michigan Legislature. Public Act 51 of 2025. Accessed July 21, 2026.
- Michigan Legislature. MCL 339.601, Occupational Code. Accessed July 21, 2026.
- U.S. Small Business Administration. Apply for Licenses and Permits. Accessed July 21, 2026.
- Michigan Townships Association. Find a Township. Accessed July 21, 2026.
- Michigan Association of County Clerks. Home. Accessed July 21, 2026.
Disclaimer
Swyft Filings is a document filing service and is not a law firm. This guide is for general informational purposes only and is not legal, tax, or financial advice. Fees, forms, and deadlines can change; confirm current requirements with a professional before making decisions for your business.