You must fill out an online registration form on the website of the Michigan Department of Treasury in order to apply for a seller’s permit in the state of Michigan. You must supply your tax identification numbers, business information, and personal information. Additional paperwork, such articles of organization or a business license, may also be required.
You must start collecting sales tax on all taxable sales made in Michigan once you receive your seller’s permit. In Michigan, the current sales tax rate is 6%. Regularly, usually monthly or quarterly, you will need to send the state the sales tax you have collected. Penalties and fines may apply if sales tax is not collected and remitted.
In Michigan, opening a business takes more than just securing a seller’s permit. Additionally, you will have to register your company with the state, get all appropriate licenses and permissions, and abide by all local, state, and federal laws. For anyone launching a business in Michigan, the Michigan Small Business Development Center offers information and support.
The phrases trade name and trademark may be used while beginning a business in Michigan. It’s critical to comprehend how these phrases differ from one another. A trade name is the name used by a company to conduct business. As an illustration, “ABC Plumbing” is a trade name. On the other hand, a trademark is a sign, term, or phrase that is used to identify and separate a specific good or service. The Nike swoosh is a trademark, for instance.
A trade name in Michigan might be “Detroit Bikes.” This is the name by which the company does business. The company might also have trademarks for its goods, such as the name and symbol for a specific type of bicycle.
A service mark is a third type of intellectual property protection available in Michigan. Similar to a trademark, a service mark is intended to identify and separate services as opposed to products. For instance, Nike’s marketing services use the tagline “Just Do It” as a service mark.
Finally, in order to sell tangible things and collect sales tax, you must obtain a seller’s permit if you intend to open a business in Michigan. But getting a seller’s permit is just the beginning of operating a business in Michigan. You will have to register your company, secure all required licenses and permissions, and abide by all applicable state and federal laws. To safeguard the intellectual property of your company, it’s also critical to comprehend the distinctions between trade names, trademarks, and service marks.