How Much Does It Cost to Start a Business in Michigan?
Last updated: May 2026
Michigan Business Overview
LLC Filing Fee
$50
Sales Tax Rate
6.0%
Minimum Wage
$10.56/hr
Cost of Living Index
90.8
Workers Comp
Required
Annual Report Fee
$25
Starting a Business in Michigan
Michigan does not have a general state business license. Registration with the Department of Licensing and Regulatory Affairs (LARA) is required for LLCs and corporations.
Michigan has a flat 4.25% individual income tax and a 6% corporate income tax. Michigan repealed its Business Tax, simplifying compliance.
Michigan's diverse economy spans automotive manufacturing, technology, and tourism. Detroit's ongoing revitalization has created opportunities for food, retail, and service businesses.
For official formation documents, visit the Michigan Secretary of State.
Startup Costs for 100 Business Types in Michigan
The table below shows estimated startup costs for every major business type, adjusted for Michigan’s cost of living index of 90.8. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $6,160 | $17,600 | $40,480 |
| Airbnb & Vacation Rental Business | Real Estate | $9,680 | $26,400 | $79,200 |
| Ambulance Service | Transportation & Logistics | $70,400 | $176,000 | $440,000 |
| App Development Company | Tech & Online | $8,800 | $26,400 | $70,400 |
| Architecture Firm | Professional Services | $17,600 | $48,400 | $114,400 |
| Auto Detailing Business | Automotive | $4,400 | $26,400 | $88,000 |
| Auto Repair Shop | Automotive | $66,000 | $176,000 | $440,000 |
| Bakery | Food & Beverage | $17,600 | $83,600 | $264,000 |
| Bar & Nightclub | Food & Beverage | $88,000 | $308,000 | $748,000 |
| Barbershop | Beauty & Personal Care | $13,200 | $57,200 | $154,000 |
| Beauty Supply Store | Beauty & Personal Care | $26,400 | $88,000 | $264,000 |
| Bookstore | Retail | $22,000 | $88,000 | $264,000 |
| Brewery / Microbrewery | Food & Beverage | $220,000 | $352,000 | $1,320,000 |
| Cannabis Dispensary | Specialty & Regulated | $109,560 | $292,160 | $1,095,600 |
| Car Wash | Automotive | $109,560 | $478,720 | $1,367,520 |
| Carpentry & Woodworking Shop | Construction & Trades | $9,240 | $24,640 | $61,600 |
| Catering Business | Food & Beverage | $10,560 | $46,640 | $114,400 |
| Chiropractic Office | Health & Wellness | $88,000 | $105,600 | $264,000 |
| Cleaning Business | Home Services | $1,320 | $9,680 | $32,560 |
| Clothing Boutique | Retail | $26,400 | $88,000 | $264,000 |
| Coffee Shop | Food & Beverage | $52,800 | $105,600 | $308,000 |
| Concrete Business | Construction & Trades | $22,000 | $57,200 | $132,000 |
| Consulting Business | Professional Services | $1,760 | $7,920 | $22,880 |
| Convenience Store | Retail | $44,000 | $246,400 | $660,000 |
| Courier & Delivery Service | Transportation & Logistics | $7,040 | $19,360 | $48,400 |
| Cybersecurity Firm | Tech & Online | $17,600 | $48,400 | $132,000 |
| Dance Studio | Childcare & Education | $17,600 | $70,400 | $220,000 |
| Daycare Center | Childcare & Education | $52,800 | $158,400 | $440,000 |
| Demolition Company | Construction & Trades | $26,400 | $70,400 | $176,000 |
| Dental Practice | Health & Wellness | $308,000 | $440,000 | $880,000 |
| Digital Marketing Agency | Tech & Online | $3,520 | $10,560 | $28,160 |
| E-Commerce Store | Tech & Online | $4,400 | $13,200 | $44,000 |
| Electrical Business | Home Services | $13,200 | $48,400 | $140,800 |
| Esthetics & Skincare Business | Beauty & Personal Care | $7,040 | $35,200 | $105,600 |
| Excavation Company | Construction & Trades | $44,000 | $114,400 | $308,000 |
| Financial Planning Practice | Professional Services | $17,600 | $48,400 | $114,400 |
| Flower Shop | Retail | $17,600 | $66,000 | $176,000 |
| Food Delivery Service | Food & Beverage | $8,800 | $45,760 | $114,400 |
| Food Processing Business | Food & Beverage | $176,000 | $220,000 | $660,000 |
| Food Truck | Food & Beverage | $39,600 | $105,600 | $176,000 |
| Freight Brokerage | Transportation & Logistics | $14,080 | $31,680 | $70,400 |
| Furniture Store | Retail | $44,000 | $176,000 | $528,000 |
| General Contracting Business | Construction & Trades | $17,600 | $48,400 | $114,400 |
| Ghost Kitchen | Food & Beverage | $17,600 | $52,800 | $132,000 |
| Gift Shop | Retail | $17,600 | $61,600 | $176,000 |
| Gym & Fitness Center | Health & Wellness | $44,000 | $220,000 | $880,000 |
| Hair Salon | Beauty & Personal Care | $13,200 | $66,000 | $220,000 |
| Handyman Business | Home Services | $1,760 | $8,800 | $29,040 |
| Home Health Care Agency | Health & Wellness | $35,200 | $114,400 | $264,000 |
| HVAC Business | Home Services | $17,600 | $61,600 | $176,000 |
| Ice Cream Shop | Food & Beverage | $17,600 | $66,000 | $176,000 |
| Insurance Agency | Professional Services | $13,200 | $35,200 | $79,200 |
| IT Services Business | Tech & Online | $13,200 | $35,200 | $88,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $22,000 | $79,200 | $220,000 |
| Landscaping Business | Home Services | $8,800 | $35,200 | $105,600 |
| Laundromat | Real Estate | $88,000 | $220,000 | $528,000 |
| Law Firm | Professional Services | $10,560 | $29,920 | $71,280 |
| Limousine & Car Service | Transportation & Logistics | $35,200 | $79,200 | $193,600 |
| Liquor Store | Retail | $44,000 | $158,400 | $440,000 |
| Marketing Agency | Professional Services | $4,400 | $15,840 | $44,000 |
| Martial Arts Studio | Childcare & Education | $17,600 | $61,600 | $176,000 |
| Meal Prep Business | Food & Beverage | $17,600 | $57,200 | $176,000 |
| Med Spa | Health & Wellness | $88,000 | $308,000 | $880,000 |
| Medical Practice | Health & Wellness | $132,000 | $352,000 | $880,000 |
| Mental Health Practice | Health & Wellness | $13,200 | $44,000 | $132,000 |
| Moving Company | Home Services | $26,400 | $88,000 | $264,000 |
| Music School | Childcare & Education | $8,800 | $44,000 | $132,000 |
| Nail Salon | Beauty & Personal Care | $17,600 | $79,200 | $220,000 |
| Painting Business | Home Services | $4,400 | $22,000 | $70,400 |
| Personal Training Business | Health & Wellness | $4,400 | $22,000 | $88,000 |
| Pest Control Business | Home Services | $8,800 | $35,200 | $105,600 |
| Pet Store | Retail | $26,400 | $88,000 | $264,000 |
| Pharmacy | Health & Wellness | $220,000 | $352,000 | $880,000 |
| Physical Therapy Clinic | Health & Wellness | $52,800 | $158,400 | $396,000 |
| Pizza Shop | Food & Beverage | $66,000 | $154,000 | $352,000 |
| Plumbing Business | Home Services | $13,200 | $44,000 | $132,000 |
| Podcast Production Company | Tech & Online | $1,760 | $5,280 | $15,840 |
| Preschool | Childcare & Education | $44,000 | $132,000 | $352,000 |
| Property Management Company | Real Estate | $9,240 | $21,120 | $48,400 |
| Real Estate Agency | Professional Services | $8,800 | $24,640 | $61,600 |
| Real Estate Investing & Rental Business | Real Estate | $22,000 | $66,000 | $220,000 |
| Restaurant | Food & Beverage | $154,000 | $330,000 | $660,000 |
| Roofing Company | Home Services | $13,200 | $52,800 | $158,400 |
| SaaS Company | Tech & Online | $17,600 | $52,800 | $176,000 |
| Spa & Massage Therapy | Health & Wellness | $8,800 | $61,600 | $220,000 |
| Staffing Agency | Professional Services | $17,600 | $48,400 | $132,000 |
| Storage Unit Facility | Real Estate | $176,000 | $528,000 | $1,760,000 |
| Tattoo Shop | Beauty & Personal Care | $17,600 | $51,920 | $176,000 |
| Tax Preparation Business | Professional Services | $3,080 | $8,800 | $23,760 |
| Thrift Store | Retail | $17,600 | $66,000 | $176,000 |
| Tire Shop | Automotive | $44,000 | $132,000 | $352,000 |
| Towing Company | Automotive | $44,000 | $132,000 | $352,000 |
| Trucking Company | Transportation & Logistics | $26,400 | $70,400 | $176,000 |
| Tutoring Business | Childcare & Education | $1,760 | $21,120 | $88,000 |
| Used Car Dealership | Automotive | $44,000 | $176,000 | $528,000 |
| Vape Shop | Retail | $22,000 | $66,000 | $176,000 |
| Web Development Agency | Tech & Online | $3,080 | $10,560 | $29,040 |
| Welding Business | Construction & Trades | $13,200 | $35,200 | $88,000 |
| Winery | Food & Beverage | $440,000 | $670,560 | $2,640,000 |
| Yoga Studio | Health & Wellness | $13,200 | $70,400 | $176,000 |
Most Popular Business Types in Michigan
Licenses & Permits in Michigan
General Business License
Michigan does not have a statewide general business license. Businesses must register their entity with the Michigan Department of Licensing and Regulatory Affairs (LARA) — Corporations Division and register with the Michigan Department of Treasury for sales tax and withholding tax. Many Michigan cities require a local business license — Detroit, Grand Rapids, Lansing, and most larger municipalities have their own licensing systems. Michigan's LARA also oversees hundreds of professional licensing programs.
Industry-Specific Licenses
- Food Service Establishment License — Michigan Department of Agriculture and Rural Development or Local Health DepartmentCost: Varies — contact agency • Renewal: Annual
- Residential Builder License — Michigan Department of Licensing and Regulatory AffairsCost: Varies — contact agency • Renewal: Every 3 years
- Cosmetology Establishment License — Michigan Board of CosmetologyCost: Varies — contact agency • Renewal: Biennial
- Real Estate Broker License — Michigan Department of Licensing and Regulatory Affairs — Real EstateCost: Varies — contact agency • Renewal: Every 3 years
- Child Care Center License — Michigan Department of Licensing and Regulatory Affairs — Bureau of Community and Health SystemsCost: Varies — contact agency • Renewal: Annual
- Retailer Liquor License — Michigan Liquor Control CommissionCost: Varies — contact agency • Renewal: Annual
- Retailer Marihuana License — Michigan Cannabis Regulatory AgencyCost: Varies — contact agency • Renewal: Annual
- Motor Vehicle Dealer License — Michigan Secretary of State — Vehicle and Business LicensingCost: Varies — contact agency • Renewal: Annual
Home-Based Business Rules
Home-based businesses in Michigan are regulated by local zoning ordinances under the Michigan Zoning Enabling Act. Michigan townships, cities, and villages each set their own home occupation rules. Most Michigan municipalities allow home occupations with restrictions on customer traffic, exterior commercial signage, and non-resident employees. Michigan's cottage food law explicitly supports home-based food production and direct consumer sales.
Michigan Business Resources
SBA District Office
Michigan SBA District Office — Detroit
Secretary of State
https://www.michigan.gov/lara/bureau-list/corporationsZoning Information
Michigan municipalities manage zoning independently. Detroit and Grand Rapids have active planning departments managing commercial development and redevelopment.
Health Department Notes
Food service businesses need a license from the Michigan Department of Agriculture and Rural Development (MDARD) or the local health department.
Workers Compensation
Required for all employers with 3 or more employees or 1 or more full-time employees. Michigan uses a competitive private insurance market.