Yes, S Corporations must submit an MBT return and pay the Corporate Income Tax (CIT) if they fall under any of the following circumstances: The corporation has Michigan property, Michigan payroll, Michigan payroll from Michigan sources, Michigan sales, Michigan payroll from Michigan sources, or Michigan income.
Yes, LLCs in Michigan must submit an Annual Report each year and pay a $25 filing fee. The annual report is submitted every year on February 15th. A $50 late fee will be assessed if the report is not submitted on time.
Any corporation having a connection to Michigan and income beyond a particular level is subject to CIT. If a corporation has a physical presence in Michigan, such as through real estate, personnel, or business operations, nexus is created. Currently, a business’s income must be $100,000 or more to qualify for CIT.
The term “doing business as” (abbreviated “DBA”) does not refer to a legitimate business entity. It’s merely a method for a company to conduct business under a name other than its legal name. Only legitimate business entities, such corporations or LLCs, have the option to elect S Corporation taxation.
In order to convert your LLC into a S Corporation, you must submit Form 2553 to the IRS. This form makes the choice to tax your LLC as a S Corporation. Additionally, you must ensure that your LLC satisfies the prerequisites for qualifying, such as having no more than 100 shareholders who are all citizens or residents of the United States.
S Corporations doing business in Michigan must, if they satisfy specific criteria, file a Michigan Business Tax (MBT) return and pay the Corporate Income Tax (CIT). In Michigan, LLCs must submit an Annual Report each year and pay a $25 filing fee. Any corporation having a connection to Michigan and income beyond a particular level is subject to CIT. An S Corp cannot be a DBA, therefore in order to convert your LLC to a S Corp, you must submit Form 2553 to the IRS and be eligible.
Unless your S corporation is recognized as a disregarded entity for federal tax reasons, you must submit a Michigan corporate tax return if you have a S corporation in Michigan. In that situation, the owner’s individual tax return will include information about the S corporation’s earnings and expenses. You will still need to submit a Michigan entity classification election form to specify that your S company is treated as a disregarded entity for Michigan tax reasons even if it is a disregarded entity for federal tax purposes. It is advised that you seek advice from a tax expert on your particular situation.
Yes, Michigan S Corporations must pay Michigan Business Tax. All firms operating in Michigan, including S Corporations, are subject to the Michigan Business Tax. S Corporations must submit an annual Michigan Business Tax return to the Michigan Department of Treasury. The tax is based on the business’s net income. S Corporations are exempt from federal income tax, nevertheless, because their shareholders are taxed on their income at their individual rates after it is passed through to them.