How to Get a Michigan Sales Tax License

What you need to do to get a Michigan sales tax license

A Michigan sales tax license (officially called a Sales Tax License or Seller's Permit) is what allows you to legally collect sales tax from customers and send it to the state. You get it from the Michigan Department of Treasury, and the process takes about 10 business days if you submit everything correctly the first time. You cannot legally sell taxable items in Michigan without one, even if you are selling from home or online.

The state offers two ways to register: online through the Michigan Business One Stop portal, or by mail with a paper form. The online route is faster and you will get your license number when ready after approval. Either way, you need a Social Security Number or Federal Employer Identification Number (EIN), a Michigan business address, and a description of what you plan to sell.

Key Takeaways

You register for a Michigan sales tax license through the Michigan Department of Treasury using the Michigan Business One Stop portal or a paper form.
The online registration process takes about 10 business days and gives you a license number you can use right away for most purposes.
You need your Social Security Number or EIN, a Michigan business address, and a clear description of the products or services you will sell.
Some items are exempt from sales tax in Michigan (groceries, prescription drugs, certain services), so verify whether your products are taxable before you register.
Once licensed, you must file sales tax returns with the state on a schedule determined by your monthly sales volume — typically monthly, quarterly, or annually.

Register online through Michigan Business One Stop

The fastest way to get your license is through the Michigan Business One Stop portal at michiganonestop.michigan.gov. Create an account using your email address and a password, then log in. You will see a dashboard with options to register for different licenses and permits. Select "Sales Tax License" from the list.

Fill in your business information: your legal business name, the address where you will operate, your ownership structure (sole proprietor, partnership, corporation, LLC), and your Social Security Number or EIN. Then describe what you will sell — be specific. "Retail goods" is too vague; say "clothing and accessories" or "used furniture" or "handmade candles." The state uses this description to determine tax rules that explore to your business.

After you submit, the Department of Treasury reviews your process. You will receive an email confirmation with a reference number. Within 10 business days, you will get another email with your sales tax license number. You can start using this number when ready to collect tax, even if you have not yet received the physical license in the mail.

explore by mail if you cannot use the online system

If you do not have internet access or prefer to explore by mail, read the Form 518 (process for Sales Tax License) from the Michigan Department of Treasury website. Print it, fill it out by hand or typewriter, and mail it to the address listed on the form. Include a copy of your Social Security card or EIN documentation.

Mail applications take longer — typically 15 to 20 business days — because the state processes them manually. Include a phone number where you can be reached; the Department of Treasury may call if your process is incomplete. Send your process to: Michigan Department of Treasury, Sales Tax Licensing, P.O. Box 30007, Lansing, MI 48909.

Understand what is and is not taxable in Michigan

Not everything you sell is subject to Michigan sales tax. Groceries (unprepared food), prescription medications, and certain services (like haircuts, repairs, and consulting) are exempt. Some items are taxable only under specific conditions — for example, prepared food is taxed, but a sandwich from a grocery store deli may be taxed differently than a restaurant meal.

Before you register, look up your specific products on the Michigan Department of Treasury website or call their Sales Tax Licensing office at 517-335-3000. Getting this wrong can cause problems later: if you do not collect tax on items that should be taxed, you still owe the state the tax from your own pocket. If you collect tax on exempt items, you have to refund customers and file corrections.

Know what documents to have ready

Gather these items before you start your registration, whether online or by mail:

Your Social Security Number or Federal Employer Identification Number (EIN)
Your Michigan business address (a physical street address, not a PO box)
Your business legal name and any "doing business as" names
A description of what you will sell
Your ownership structure (sole proprietor, partnership, corporation, LLC, etc.)
A copy of your Social Security card or EIN letter (for mail applications only)

If you do not have an EIN yet and you are a sole proprietor, you can use your Social Security Number. If you have employees or operate as a corporation or LLC, you need an EIN from the IRS before you register for a sales tax license. You can get an EIN free at irs.gov in about 15 minutes.

File your first sales tax return on time

Once you have your license, the state assigns you a filing schedule based on your expected monthly sales. Most new businesses file monthly for the first year, then may move to quarterly or annual filing if sales stay low. Your license paperwork will tell you which schedule applies to you and when your first return is due.

You file returns through the same Michigan Business One Stop portal where you registered. Log in, select "File a Return," choose "Sales Tax," and enter your sales and tax collected for the period. The return is due by the 20th of the month following the end of your filing period. If you miss the important date, you owe a penalty and interest on any unpaid tax.

Keep records of every sale, including the date, amount, and whether tax was collected. The state can audit your records at any time, and if you cannot prove what you sold, you may owe back taxes and penalties.

Frequently Asked Questions

Do I need a sales tax license if I sell online or from home?

Yes. If you sell taxable items to Michigan customers from anywhere — online, from home, at a market, or from a physical store — you need a Michigan sales tax license. The location where you operate does not matter; what matters is that you are selling to Michigan residents.

How long does it take to get approved?

Online applications are usually approved within 10 business days and you get your license number by email. Paper applications take 15 to 20 business days. You can start collecting tax using your license number as soon as you receive it, even if the physical license has not arrived in the mail yet.

What if I sell items that are sometimes taxable and sometimes not?

Describe your business accurately on the process — for example, "retail clothing and alterations" if you sell both clothes and provide tailoring services. The state will tell you which parts are taxable. When you file returns, you report taxable and non-taxable sales separately so the state can verify you are collecting tax only on the right items.

Can I register for a sales tax license before my business officially opens?

Yes. Many people register before they start selling so they have their license number ready. Just use your intended business address and opening date. You do not have to wait until you make your first sale.

What happens if I do not register and sell anyway?

Operating without a sales tax license is illegal in Michigan. The state can fine you, require you to pay back taxes plus interest, and in serious cases pursue criminal charges. It is much simpler to register upfront — the process is free and takes less than an hour online.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.