When you decide to start your own business, you’ll inevitably have a few questions. There is a clear process for starting a business in Michigan, and once you know what to do, you’ll find that your company is up and running in no time. Here’s everything you need to know about starting a business in Michigan.
Step 1: Decide On A Business Structure
Your first decision is in regards to your business structure. This choice will determine the other details of your company and will affect your taxes, so you need to do your research before deciding. Typically, you’ll be choosing between these structures if you’re starting a business in Michigan.
- Sole Proprietorships
- S Corporations
- Limited Liability Company (LLC)
Once you choose a structure, you’ll file the appropriate paperwork with the Department of Licensing and Regulatory Affairs. An accountant or another business owner can help you compare the available business structures so you can choose the best one for your needs.
Step 2: Pick A Business Name
After you’ve chosen a structure, you’ll need to pick a name for your business. You will want to spend time thinking about your company’s name. You’ll want to choose something that you absolutely love and that clearly conveys your business. Though you could change your business’s name in the future, you won’t want to. Changing your company’s name could result in lost business or customers. You can trademark your business name fairly easily, and you can search the database to see what names have already been claimed. Looking at what’s available and what’s taken will help you find the best name for your company.
Step 3: Register The Business
In Michigan, you can register your business online with the Corporations Online Filing System (COFS). This system makes it easy to submit documents online and request expedited service. Remember when you chose your business’s structure? That structure will determine what documents you need to file with the state. You’ll also need to register with the federal government. This will provide you with a federal tax ID. Registering your business with the state and federal governments ensures it is a legal entity.
Step 4: Open Company Accounts: Bank And Credit Cards.
Once you’ve completed all the paperwork, it’s time to get your business off the ground. You should start by opening company accounts, including a bank account and a credit card. You might want to open your business account with the same bank where you have your personal account since they already know you there and are more likely to give you a small business loan if you need to apply for one. Stick with your credit union in Rockford, MI. Don’t be tempted to use your personal accounts for the business. This could lead to small or large mistakes and you definitely don’t want to end up in Oakland county jail for tax fraud.
Step 5: Obtain Business Licenses And Permits.
Depending on the industry in which you’re opening a business, you’ll need to obtain licenses and permits. If you’re opening a restaurant and plan to sell alcohol, you’ll have to apply for a liquor license. States tend to regulate somewhat strictly, but the Michigan government website makes it easy to find out if you need to apply for a license or permit. You can search by industry and find clear guidelines on how to proceed, no matter your business.
Starting a business in Michigan is very straightforward. You can easily register your company and obtain the necessary licenses, which makes opening a business in Michigan a great idea. Get your company up and running in no time.