What you need to do to get a Michigan sales tax license
To get a Michigan sales tax license, you register with the Michigan Department of Treasury through the online system called MITS (Michigan Integrated Tax System). You will need your Social Security number or federal employer identification number (EIN), your business structure type (sole proprietorship, LLC, corporation, or partnership), and the address where you will conduct business. The process takes about 15 minutes to complete online, and you receive a temporary license number when ready; your official license arrives by mail within one to two weeks.
You must register before you make your first sale of taxable goods or services. Michigan law requires this even if you do not expect to owe sales tax — for instance, if you sell only services or only resell items you bought tax-free. Registering late can result in penalties and back taxes, so the safest approach is to register as soon as you know you will be selling.
Key Takeaways
- Register through MITS online at michigan.gov/taxes; you need your SSN or EIN and your business address.
- You receive a temporary license number on the same day and your official license by mail within one to two weeks.
- You must register before your first sale, even if you think you will not owe sales tax.
- Michigan charges 6 percent sales tax on most goods; some items like groceries and prescription drugs are exempt.
- Once licensed, you file sales tax returns monthly, quarterly, or annually depending on how much you sell.
How to register on MITS
Go to michigan.gov/taxes and look for the MITS login link on the homepage. If you do not have a MITS account yet, select "Create New Account" and enter your email address and a password. You will receive a confirmation email; click the link to set up your account.
Once you are logged in, select "Register for a License" and choose "Sales Tax License" from the menu. Answer the questions about your business: your legal name, the name you do business under (if different), your business structure, your start date, and the physical address where you will sell or store goods. If you are a sole proprietor, you will use your Social Security number; if you have an EIN, use that instead. You will also describe what you sell — the system has categories like retail, wholesale, manufacturing, and services.
Review your answers, then submit. The system will generate a temporary license number on screen. Write this number down or take a screenshot; you can use it when ready to buy goods for resale without paying sales tax. Your official license, printed on paper, will arrive at your business address within one to two weeks.
What information you need before you start
Gather these items before you log into MITS: your Social Security number or EIN, your business legal name, the name you operate under (if you use a DBA or trade name), your business structure (sole proprietor, partnership, LLC, S-corp, or C-corp), and the street address where you will conduct business. If you are registering a partnership or corporation, you will also need the names and addresses of all owners.
You will also need to know your business start date — the date you plan to open or the date you made your first sale, whichever is earlier. If you have already been selling without a license, use the date you made your first sale. The state uses this date to calculate any back taxes owed, so be honest about it.
What happens after you register
Once you have your temporary license number, you can when ready use it to buy goods for resale without paying sales tax. When you buy from a wholesaler or distributor, show them your license number and they will not charge you sales tax on those purchases. You will then charge your customers sales tax when you sell those goods to them.
The state will send you a sales tax return form based on how much you report selling. If you sell less than $1,000 per month on average, you file annually. If you sell $1,000 to $20,000 per month, you file quarterly. If you sell more than $20,000 per month, you file monthly. You can also request to file on a different schedule if your business is seasonal or if you prefer monthly reporting.
You file your return and pay the sales tax you collected through MITS. The important date is usually the 20th of the month after the period ends — so a monthly return for January is due by February 20. If you do not file or pay on time, the state charges interest and penalties.
Sales tax rates and what is taxable in Michigan
Michigan charges 6 percent sales tax on most goods and services. Some items are exempt: groceries and food for home consumption, prescription drugs, medical devices, and certain agricultural equipment. If you sell only exempt items, you still need a license, but you will report zero sales tax owed on your returns.
Services are taxed differently depending on what you do. Labor and repairs are generally taxable — if you fix a car or repair a roof, you charge sales tax. However, professional services like accounting, legal information, and medical care are not taxable. If you are unsure whether your service is taxable, the Michigan Department of Treasury website has a detailed list, or you can call them at 517-636-4486.
If you sell both taxable and exempt items, you must track them separately on your returns. Many point-of-sale systems do this automatically, but if you use a straightforward cash register or spreadsheet, you will need to categorize each sale yourself.
If you already started selling without a license
Register as soon as possible. When you register, you will be asked for your business start date. If you have been selling without a license, use the date you made your first sale. The state may assess back sales tax and penalties based on that date, but registering now stops the clock on future penalties.
If the state contacts you about unpaid sales tax, you can negotiate a payment plan through MITS or by calling the Department of Treasury. Having a license and filing returns going forward shows good faith and usually results in a smaller penalty than if you continue operating without one.
Renewing and updating your license
Your Michigan sales tax license does not expire. You keep it as long as you are in business. However, if your business address changes, your business structure changes (for example, you convert from a sole proprietorship to an LLC), or you add a new location, you must update your registration in MITS within 30 days.
If you close your business, you should notify the Department of Treasury so they stop sending you return forms. File a final return showing zero sales and mark it as your last return. If you do not notify them and do not file, they may assess penalties for non-filing.
Frequently Asked Questions
Do I need a sales tax license if I only sell online?
Yes. If you ship to Michigan customers, you need a Michigan sales tax license and must collect sales tax on those sales. You also need licenses in any other state where you have sales tax obligations — the rules vary by state and depend on how much you sell there.
Can I use my license to buy goods tax-free?
Yes, but only for goods you plan to resell. Show your license number to the wholesaler or distributor when you buy. You cannot use it to buy items for personal use or for your own business operations — only for inventory you will sell to customers.
What if I make a mistake on my sales tax return?
You can file an amended return through MITS. Go to your account, select the return you want to correct, and file an amended version. The state will adjust what you owe and send you a bill or refund. If you owe more, you may be charged interest on the difference.
How long does it take to get my official license in the mail?
One to two weeks from the date you register. Your temporary license number works when ready, so you do not have to wait to start buying goods tax-free or to begin selling. The official license is a printed certificate you can display in your business.
What if my business address is a home or a PO box?
You can use a home address. If you use a PO box, MITS will ask for a physical street address as well, because the state needs to know where you actually conduct business. A PO box alone is not enough.