From 2008 to 2011, there existed a state tax known as the Michigan Business Tax (MBT). The Single Business Tax (SBT), which was eliminated in 2007, was replaced by it. The MBT was a hybrid of an income tax on corporations and a sales tax. All business structures, including corporations, partnerships, and LLCs, were covered by it. The tax was computed based on the gross receipts and taxable income of the company.
Beginning in 2012, the MBT was gradually phased down and was replaced by the Michigan Business Development Program (MBDP) and the Corporate Income Tax (CIT). The MBDP grants tax incentives to enterprises who create jobs in Michigan, whereas the CIT is a flat tax of 6%.
There are various procedures you must follow in Michigan if you want to dissolve your LLC. A Certificate of Dissolution must first be submitted to the Michigan Department of Licensing and Regulatory Affairs (LARA). The certificate can be submitted online or by mail.
After that, you must pay off the LLC’s debts and responsibilities. This could entail settling debts with creditors, ending agreements, and allocating assets to members. You must also pay any unpaid taxes that the LLC may still owe, such as unpaid income or sales taxes.
The Michigan Department of Treasury will need to receive your final tax return. The time period covered by this return should be from the start of the tax year to the date of dissolution. You must also submit your final employment tax filings and distribute W-2 forms to any employees the LLC had.
As a state tax, the Michigan Business Tax was in place from 2008 to 2011. It applied to all kinds of enterprises and was a hybrid of a corporate income tax and a gross receipts tax. The Corporate Income Tax and the Michigan Business Development Program have taken the place of the MBT. In order to dissolve an LLC in Michigan, you must submit a Certificate of Dissolution together with your last tax returns, payment for all debts and obligations, and settlement of any outstanding liabilities.