Ten (10) Steps to Start A Business In Michigan

Follow the given steps to legally start a business in Michigan.

Step 1. Choose a Business Idea

The very first step towards starting a business in Michigan is to select a proper business idea. If you are a beginner with low budget, check out the above small business opportunities that need almost no money.

Step 2. Planning Your Business

Start with a detailed plan for your new business. The business plan will help you to stay ahead of your competition. Jot down the goals, targets, and how to wish to proceed with your new business.

Step 3. Financing Your Business

Michigan offers a healthy platform for new businesses. The state has several investors and venture capital firms. If you choose to fund your own business, go for a loan with a long-term payback period and low-interest rate.

Step 4. Naming Your Business

Choose a name and register it with the US trademark department. Make sure no one else has your name. Buy a domain immediately with the same name.

Step 5. Choosing A Business Structure

To register your business in Michigan, you need an Unemployment Insurance Account (UIA) from the Michigan Department of Licensing and Regulatory Affairs. You can choose between a sole proprietorship, partnership, corporation, and an LLC. An LLC will offer you added benefits and extra advantages.

Step 6. Federal EIN & Tax Filing

You have to apply for a Federal EIN to be eligible for taxation. The Federal Employer Identification Number (FEIN) is your business tax ID. Register your business with the Michigan Department of Taxation and Finance.

Step 7. Business Permits & Licenses

You will need local licenses specific to cities in Michigan to be legally operational. Get a sales tax license to sell products legally. The license will allow you to make purchases for resale without paying any sales tax. The sales tax license has to be issued from the Michigan Department of Treasury. Some businesses in Michigan need special permits and licenses, like Recycling plastic business.

Step 8.Business Bank Account & Bookkeeping

Get a business bank account to facilitate financial transactions and open a credit account for vendors. Choose reliable accounting software that will help you to manage all your transactions in one place.

Step 9. Business Insurance

You need to have a professional liability policy to sell services in Michigan. Also if you have any employee, you will need a worker's compensation insurance to have a legal business

Step 10. Promoting Your Business

Now it's time to take the word our. Take your business to your potential audience. Promoting a business in the right places is important. It's better to hire an agency for promotions and marketing.