To legally sell goods in Michigan, you need a seller’s permit. This is because you must buy materials wholesale and charge sales tax. Resellers should apply for a use tax license with the Michigan Department of Treasury. Many cities require a business license to operate.
Seller’s Permit and Sales Tax License
To sell handmade jewelry on Etsy in Michigan, acquire a sales tax license by calling the Michigan Department of Treasury. All online sellers need a business license to demonstrate legal business operations.
Cost of a Seller’s Permit in Michigan
The Michigan Department of Treasury issues sales tax permits. Currently, there is no charge for a Michigan sales permit. While no general license is required to operate a business in Michigan, certain industries need specific state licenses or permits.
Businesses purchasing merchandise to resell will usually want to obtain a Michigan Certificate of Exemption to not pay sales tax on merchandise being resold.
To become a realtor in Michigan, a real estate license is required. Construction professionals often need a contractor license to work in Michigan. Brands may require a resale certificate to authorize you distributing their trademarked products.
You have the option of registering over the phone or requesting a paper application is mailed to you for a sales tax license. The price is one dollar. Etsy doesn’t require sellers to have a business license to sell products via its platform.
Michigan has only one type of sales tax permit, a Sales and Use License.
Additional Licenses and Fees
Other professional licenses regulated on the city, state or federal level may incur costs. For example, a business license in Flat Rock costs $60 per year while a state liquor license costs $600 per year.
Although Michigan does not require all enterprises to hold a generic business license, the state issues licenses for hundreds of various professions and industries. The Michigan LLC setup fee is $50.
You may acquire your Michigan Sales Tax License online in as soon as seven days. Required licenses depend on business activities and location. Prices range from $0 to over $1,000. Penalties for operating without a professional license include fines up to $25,000 and imprisonment up to a year.
Applying for a Business License in Michigan
How you apply for your business license depends on your city. In Detroit, first obtain building permits, federal identification number, and other documents. Then apply for your license online by uploading the documents.
Apply for a sales tax license with the Michigan Department of Treasury for a seller’s permit to sell goods in Michigan. Some cities require a business license to operate.