Before you begin

Confirm you need to register

Before completing a sales and use tax registration application in the state of Michigan, confirm that your business meets the requirements to register for a sales tax licence.

Who should register?

• Retailers located in the state of Michigan who engage in sales of tangible goods, services, or marketplace-facilitated sales.
  
• Remote sellers (i.e., businesses located outside of Michigan making sales with final destination into Michigan) that meet either the sales or transaction number thresholds listed below.
  
  • Threshold: $100,000 in gross sales or 200 separate transactions
    
  • Period: Previous year
    

Gather information

Next, view the checklist below to make sure you have all required information readily available, as this will help simplify the online application process.

• Business structure
  
• Social Security number (SSN) or federal employer identification number (FEIN)
  
• State and date of incorporation (if applicable)
  
• Business name and address
  
• Responsible officers’ information
  
• First date of sales in Michigan and prior year gross sales
  

Start the registration process

1. Navigate to the Michigan New Business Registration website, where you will create a Michigan Treasury Online (MTO) user profile.
   
   • Select the “Michigan Treasury Online (MTO).”
     
   • Select “Create my user profile” when directed to the next screen.
     
2. Use the primary responsible person’s information to complete the “Profile information” section. If more than one responsible person exists, use the majority ownership individual’s information.
   
   • Tick the box to agree to the terms and conditions before selecting “Next.”
     
3. Create a username and password for your business’s MTO account. Be sure to store this information in a secure location for future reference.
   
4. Select four security questions and create answers. Be sure to store this information in a secure location for future reference.
   
5. You should receive a “Successful submission” notice on your screen. Select “Log in to your account,” and log in using your newly created username and password.
   
6. Once logged in, select “Start a new business (e-registration)” under “Registration services.”
   
7. Answer the “Yes/no” questions under the “Start a new business” section.
   
   • Next, select the “Register your business with the state of Michigan” blue hyperlink at the bottom of the page.
     
8. Begin the e-registration application. You will now be redirected to the Michigan Unemployment Insurance Agency website, where you will begin the registration application by selecting “Start e-registration.”
   
9. Complete the 12-step application by answering the questions on the form using the information for your business.
   
   • In this section, you will enter your collection start date for tax on sales to Michigan. This is the date the state will expect you to start collecting sales tax from your customers in Michigan. We recommend speaking with a CPA if you are unsure of which date to use for your business.
     
   • Once the 12 steps are completed, select “Next step.”
     
   • Note: Michigan imposes a state-wide tax rate of 6% for sales and use. No taxes are levied on a local or county level. To determine the estimated monthly payment for sales tax in step 9, divide your business’s prior year gross sales by 12 and multiply this number by 6%. Compare the expected monthly tax owed calculated amount with the following classifications to determine the filing frequency: less than $83 per month = annual frequency; $84 to $999 per month = quarterly frequency; $1,000 or more per month = monthly frequency.
     
   • Note: The state of Michigan audits this information annually and will send a notice to the business by post if a frequency change has been made by the state on behalf of the business. More information regarding filing frequencies in this state may be found here.
     
10. Attach any necessary documentation (optional) before selecting “Next step.”
    
11. Using the responsible person’s information, complete the fields to certify the application before selecting “Submit.”
    
12. Select “Printable view” to print a copy of the submitted registration application for your business.
    
    • The registration application should be processed by the state in one to two business days.
      
    • Once this is completed, a sales tax licence for Michigan will be posted to your business within seven business days.
      
13. Create a new business relationship.
    
    • After two business days, log back into the Michigan MTO account for your business.
      
    • Select “Manage business registration” under “Registration services.”
      
    • Select “Create a new relationship.”
      
14. Enter the business’s FEIN and select “Next.” Tick the box next to “Manage business registration” and select “Next.”
    
15. Answer the questions prompted on the verification page.
    
    • Select the filing frequency selected on the registration application.
      
    • Select the appropriate business ownership type based on the registration application.
      
    • Select the appropriate registered taxes as selected on the application.
      
    • Select “Verify.”
      
16. If the registration has been processed by the state and the information provided on the verification is correct, the Michigan DOR will send a one-time access code via email.
    
    • Check the email associated with the business’s MTO login, and copy and paste the access code from the email to the DOR page. Select “Submit.”
      
    • Your business name, account number, and access rights information should now be visible under the “Manage business registration” section when logged in.
      
17. Next, create a new tax relationship.
    
    • Select “Sales, use, and withholding (SUW) tax” under the “Tax services” section.
      
    • Select “Create a new relationship.”
      
18. Enter the business FEIN, and select “Next.”
    
    • Select the roles you would like access to through your MTO account, and select “Next.”
      
    • Verify the registered business information is the same as when you created the new business relationship. Select “Verify.”
      
19. Follow the next steps to retrieve the account number, filing frequency, and registration effective date for the business in the state of Michigan.
    
    • From the business’s MTO home page, select “Manage business registration.”
      
    • Select the newly created business relationship.
      
20. From the “Registration actions” menu to the right of the page, select “Letters.”
    
21. Select “View PDF” on the right-hand side of the “Summary Information Letter.” This letter will provide you with your account number, filing frequency, registration start date, and Certificate of Registration.
    

What’s next?

Enable sales tax calculations for Michigan on Stripe Tax

Once you have received your sales tax permit from the state, the next step is to enable sales tax calculations in Stripe Tax for Michigan, as the state will expect you to start collecting sales tax from your customers in Michigan based on the collection start date you used on your sales tax registration form.

You can read these instructions on how to add your Michigan registration to your Stripe Dashboard. For more information on enabling Stripe Tax, you can find full setup instructions.

Sales and use tax online filing and payments

Next, you’ll want to prepare to file your first sales tax return in Michigan based on the filing frequency the state assigned you.

If you’d prefer to have a trusted partner file these returns for you, we recommend using TaxJar’s AutoFile solution. Click here to sign up and see more information.