In Michigan, to legally sell goods and operate most businesses, it is essential to acquire specific permits and licenses. Below are details on the requirements for acquiring a seller’s permit, sales tax license, and other industry-specific licenses.
Seller’s Permit and Sales Tax License
To legally sell goods in Michigan or operate a business, a seller’s permit is required. This allows the purchase of materials wholesale and the charging of sales tax. You must apply for a use tax license with the Michigan Department of Treasury, and many cities require a separate business license.
For those interested in selling handmade jewelry on Etsy, acquiring a sales tax license is necessary by contacting the Michigan Department of Treasury. There is currently no charge for a Michigan sales permit. No general license is needed to operate a business in Michigan, but some industries have special licensing requirements.
Retailers and wholesalers reselling goods should also consider obtaining a Michigan Certificate of Exemption to avoid paying sales tax on merchandise being resold.
Licensing for Specific Professions
Professionals in certain fields require additional licensing:
- Realtors need to obtain a real estate license.
- Construction professionals often need a contractor license.
- Brands may require a resale certificate to authorize individuals to distribute their trademarked products.
Registration Options and Costs
To register for a sales tax license, you can:
- Register over the phone.
- Request a paper application be mailed to you.
The cost for registering is one dollar. It is important to note that Etsy does not mandate sellers to have a business license to sell products on its platform.