If you’re planning to start a business in Michigan, one crucial step you can’t overlook is registering for a Michigan sales tax permit. Whether you’re selling products or services, this permit is essential for ensuring your business complies with state tax laws. 

In this 2025 guide, we’ll walk you through the process of obtaining your Michigan sales tax permit, from understanding its importance to completing the necessary paperwork. 

By the end of this article, you’ll be equipped with the knowledge to navigate the registration process smoothly, so you can focus on growing your business with confidence. Let’s dive in!

What is a Sales Tax Permit in Michigan?

A sales tax permit in Michigan is a state-issued authorization that allows businesses to collect sales tax on taxable goods and services sold within the state. When you complete your sales tax registration in Michigan, you’re legally obligated to charge sales tax to your customers and remit it to the Michigan Department of Treasury. This is crucial for ensuring compliance with state tax laws and avoiding potential penalties.

Both in-state and remote sellers need to pay attention to this requirement. If you’re based in Michigan, you need a sales tax permit to conduct sales within the state. 

Remote sellers, those who operate outside Michigan but make sales to Michigan residents, must also register for a Michigan sales tax permit if they meet certain sales tax thresholds. 

Whether you’re a local business owner or a remote seller expanding into Michigan, completing your Michigan sales tax registration is a key step in running a legally compliant operation.

Do You Need to Register for a Sales Tax Permit in Michigan?

To determine if you need to register for a Michigan sales tax permit, consider the following checklist:

Who Needs a Sales Tax Permit in Michigan?

  • In-state Sellers: Any business physically located in Michigan selling taxable goods or services.
  • Remote Sellers: Remote seller sales tax registration in Michigan is for out-of-state businesses that make sales into Michigan. You must register if, in the previous calendar year, you had:
    • Over $100,000 in gross sales to Michigan customers, or
    • 200 or more separate transactions with Michigan customers. This is known as economic nexus.
  • Marketplace Sellers: If you sell through platforms like Amazon or eBay, you may need to register, depending on your sales volume and whether the marketplace facilitator collects and remits tax on your behalf.
  • Wholesalers: Even if you only make wholesale sales, you may need to register if your sales exceed the economic physical nexus thresholds.
  • Foreign Sellers: Non-U.S. businesses with sales exceeding the economic nexus thresholds in Michigan are required to register and remit sales tax. 

Nexus Determination

Nexus is the connection between your business and Michigan that obligates you to collect and remit sales tax. You can establish sales tax nexus through: 

  • Physical Presence: Having employees, agents, or property in Michigan. 
  • Economic Presence: Meeting the sales or transaction thresholds mentioned above.

If you meet either criterion, you are required to register for a Michigan sales tax permit.

For more detailed information, refer to the Sales and Use Tax Information for Remote Sellers provided by the Michigan Department of Treasury.

Step-by-Step: How to Get a Sales Tax Permit in Michigan

If you’re wondering how to get a sales tax permit in Michigan, here’s a simple, step-by-step guide to help you through the process:

Step 1: Gather Necessary Information

Before starting the application, make sure you have all the required details, such as:

  • Your business name
  • Federal Employer Identification Number (FEIN) or Social Security Number (SSN)
  • Business structure (e.g., sole proprietorship, LLC, corporation)
  • Michigan business address
  • Estimated monthly sales
  • The Michigan county of business operation

Step 2: Visit the Michigan Department of Treasury Website

Go to the Michigan Department of Treasury’s Sales Tax page to access the online portal for sales tax registration.

Step 3: Create an Account or Log In

If you don’t already have an account, create one by providing your business and personal details. If you already have an account, log in to your existing profile.

Step 4: Complete the Application

Follow the on-screen prompts to fill out the sales tax registration application. You’ll be asked for details such as:

  • Business structure
  • Nature of your business
  • Whether you have a physical presence in Michigan or are a remote seller
  • Sales tax exemption status (if applicable)

Step 5: Submit Your Application

After completing the application, review your entries to ensure everything is accurate. Once confirmed, submit the application electronically through the portal.

Step 6: Pay Any Applicable Fees

Depending on your business type and the nature of your sales, you may need to pay a registration fee. Ensure that you complete the payment using the portal’s secure payment options.

Step 7: Wait for Approval

Once submitted, your application will be reviewed. Most applications are processed within a few business days, but it can take longer in some cases. You’ll receive your Michigan sales tax permit once the review is complete.

Step 8: Start Collecting Sales Tax

After you receive your permit, you’re legally authorized to collect sales tax from your customers. Be sure to start charging and remitting sales tax as required.

By following these steps, you’ll be well on your way to complying with Michigan’s sales tax laws and running a successful business.

What Information Do You Need to Register?

Before you begin your sales tax registration in Michigan, it’s essential to have all the necessary information at hand to make the process smoother. Here’s a list of the details you’ll need.

Business Information

You’ll need to provide basic details about your business, including:

  • Legal business name
  • Business address
  • Business phone number and email address
  • Business structure (e.g., sole proprietorship, LLC, corporation)

Employer Identification Number (EIN)

If your business is structured as a partnership, LLC, or corporation, you’ll need an EIN. This is essentially your business’s SSN, and it’s used for tax and legal purposes. If you don’t have one yet, you can get it directly from the Internal Revenue Service (IRS).

NAICS Code

The North American Industry Classification System (NAICS) code is a numerical code that categorizes your business based on its industry. This code is used for statistical and tax purposes. You can look up your business’s NAICS code on the official NAICS website or through the Michigan Department of Treasury portal.

Responsible Party Details

You’ll need to provide information about the responsible party for the business, typically the owner or a key officer. This includes:

  • Full name
  • Title or position
  • SSN or Individual Taxpayer Identification Number (ITIN)

Estimated Monthly Sales

Be prepared to provide an estimate of your monthly sales volume. This helps determine your filing frequency and whether you’ll be required to make monthly, quarterly, or annual sales tax payments.

Sales Tax Exemption Status (if applicable)

If your business qualifies for any sales tax exemptions, such as selling exclusively to non-profit organizations or government entities, you’ll need to provide relevant documentation or indicate your exemption status in the application.

How Much Does It Cost to Register for a Sales Tax Permit in Michigan?

Registering for a Michigan sales tax permit is completely free. There are no application fees or annual renewal fees associated with obtaining or maintaining your sales tax license .

License Validity & Renewal

Your Michigan sales tax license is valid from January 1 through December 31 of the current calendar year. It automatically renews each year unless you request cancellation.

How Long Does It Take to Get Approved?

The processing time for a Michigan sales tax permit varies depending on how you submit your application:

  • Online e-Registration: If you complete the registration through Michigan Treasury Online (MTO), your application is typically authenticated within 10–15 minutes. However, full processing may take up to 48 hours. Once processed, you can access and print your sales tax license immediately through MTO.
  • Paper Application (Form 518): If you choose to mail the paper form, allow 4–6 weeks for processing. After approval, your sales tax license will be mailed to your legal address.

Tip: After submitting your application, especially if done online, it’s a good idea to check your email’s spam or junk folder for any communications from the Michigan Department of Treasury. Occasionally, confirmation emails may be filtered incorrectly.

Common Mistakes to Avoid When Registering

To make sure your registration process goes smoothly, avoid these common pitfalls:

  • Not Double-checking for Sales Tax Exemptions: If you’re eligible for a tax exemption, ensure you provide all the necessary documentation to avoid overpaying taxes or delays in your application.
  • Selecting the Wrong Business Type: Make sure you accurately identify your business structure (e.g., LLC, corporation, sole proprietorship). Mistakes here can cause delays and complications later.
  • Incorrect or Missing NAICS Code: The NAICS code is a key part of your application. Providing the wrong code could lead to processing errors or even penalties.
  • Skipping Marketplace Facilitator Obligations: If you’re selling through platforms like Amazon or eBay, you may still be required to register for a sales tax permit. Don’t assume the marketplace handles everything for you.
  • Failing to Include Your EIN or SSN: Missing your EIN or SSN can cause delays in processing. Have this information ready before you start.

What Happens After You Register?

Once you’ve successfully registered for a Michigan sales tax permit, here’s what to expect next:

  • Receive Your Sales Tax Permit: After your registration is processed, you’ll receive your sales tax permit. If you applied online, you’ll have immediate access to it through the MTO portal. If you applied by mail, expect it to be delivered to your business address within a few weeks.
  • Account Setup in MTO: You’ll be automatically registered in the MTO system, where you’ll manage your sales tax obligations. You’ll receive login credentials via email, which will allow you to access your account, file returns, make payments, and view your tax history.
  • Filing Frequency: Based on your estimated sales volume, you’ll be assigned a filing frequency:
  • Monthly: For businesses with high sales volume.
  • Quarterly: For businesses with moderate sales volume.
  • Annually: For businesses with low sales volume.
  • Start Collecting Sales Tax: Once registered, you must begin collecting sales tax on all taxable transactions. This is true for both in-state and remote sales. The rate will depend on the nature of your goods or services, so ensure you’re applying the correct rate.
  • Sales Tax Remittance: After collecting sales tax, the next critical step is submitting the collected taxes to the Michigan Department of Treasury. You can manage all sales tax remittance tasks directly through your MTO account, where you’ll file returns based on your assigned schedule. Accurate and timely remittance ensures you stay compliant and avoid penalties.

Special Considerations for Out-of-State or Remote Sellers

If you run an e-commerce business or operate as a remote seller, there are some important things you need to keep in mind when it comes to the state of Michigan sales tax permit. Let’s walk through the key points:

Remote Seller Sales Tax Registration in Michigan 

As a remote seller, you’re required to register for a sales tax permit in Michigan if you meet certain criteria. If your business is based outside of Michigan but you make taxable sales to Michigan residents, you may still need to comply with Michigan’s out-of-state sales tax rules.

Economic Nexus

Michigan has adopted economic nexus provisions, which means that even if you don’t have a physical presence in the state, you can still be required to collect sales tax if your sales exceed a specific threshold. As of 2025, the threshold for remote sellers is:

  • $100,000 in sales or
  • 200 separate transactions in Michigan.

If you surpass either of these thresholds in a calendar year, you’ll need to register for a sales tax permit and start collecting and remitting sales tax.

Marketplace Facilitator Laws 

If you sell products through online platforms such as Amazon, eBay, or Etsy, Michigan has special marketplace facilitator laws. Under these laws, marketplace facilitators are generally responsible for collecting and remitting sales tax on your behalf for sales made on their platform. However, you still need to register for a sales tax permit in Michigan to remain compliant with all state regulations, even if the marketplace is handling tax collection.

Resources & Where to Register

Here’s everything you need to know about registering for your Michigan sales tax permit and staying compliant with the state’s tax regulations:

Simplifying Sales Tax Compliance with Commenda

Navigating sales tax registration and compliance can be a headache, especially for remote sellers, e-commerce businesses, and marketplace facilitators. But with Commenda, managing Michigan sales tax compliance has never been easier.

Why Commenda is the Smart Choice for Sales Tax Compliance?

  • Automated Registration: Commenda takes the guesswork out of Michigan sales tax registration. With just a few simple steps, you can automate your registration process and be up and running in no time, no paperwork, no waiting.
  • Ongoing Filing Support: Don’t worry about missing deadlines or complicated forms. Commenda helps you stay on top of your sales tax returns, automatically calculating and filing them for you. Whether you’re filing monthly, quarterly, or annually, we’ve got you covered.
  • Multi-state Compliance: Selling in multiple states? No problem. Commenda ensures you’re compliant with sales tax rules in Michigan and other states you operate in, making it easy to handle multi-state sales tax compliance with a single platform.
  • Tailored for Remote Sellers and Marketplaces: Whether you’re selling directly or through a marketplace like Amazon, Commenda simplifies the entire process. We help you navigate the complexities of marketplace facilitator laws and ensure your compliance with state tax requirements, so you can focus on growing your business.

With Commenda, a global sales tax platform, you’ll have a seamless, hassle-free experience for sales tax registration, filing, and remittance. No guesswork, no red tape, just fast, reliable compliance so you can get back to what matters: growing your business.