Michigan Small Business Licenses and Permits: What You Need to Operate Legally in Livingston County

Table of Contents

1. State Business Registration with LARA
2. Federal EIN: Your Business Tax ID
3. Michigan Sales Tax License
4. Local Business Licenses and Zoning in Livingston County
5. Professional and Occupational Licenses
6. Contractors: Michigan Residential Builder and Maintenance & Alteration Contractor
7. Food Service and Restaurant Licensing
8. Healthcare and Personal Services
9. Childcare Licensing in Michigan
10. Home-Based Business Compliance
11. Master Compliance Checklist
12. FAQ

Starting or operating a business in Michigan without the required licenses and permits is one of the most common and costly compliance mistakes small business owners make — not because licenses are hard to obtain, but because the landscape is fragmented across federal, state, county, and municipal levels. There is no single place to look up everything you need. This Michigan small business licenses and permits guide covers every requirement for Livingston County entrepreneurs.

This guide consolidates the requirements for Livingston County small businesses into one practical checklist. It covers the universal requirements every Michigan business needs, plus the industry-specific requirements for the categories most common in our chamber membership. This is not legal advice — for complex situations, consult an attorney or CPA, several of whom are Kingdom Gate members.

State Business Registration with LARA

If you operate as a sole proprietorship under your own legal name, Michigan does not require state registration — though you’ll still need other licenses described below. If you operate under any other name, or as an LLC or corporation, registration with the Michigan Department of Licensing and Regulatory Affairs (LARA) is required. Understanding Michigan small business licenses and permits requirements protects your business from costly fines.

Assumed Name (DBA) registration: If you operate as a sole proprietorship or partnership under a name other than your own legal name — for example, “Brighton Plumbing” owned by John Smith — you must file an assumed name certificate with the Livingston County Clerk’s office. Fee is approximately $10. This is sometimes called a “DBA” (doing business as) filing.

LLC formation: File Articles of Organization with LARA through michigan.gov/lara. Filing fee is $50. Processing takes 7–10 business days standard, or $100 for 24-hour expedited. Your LLC is legally formed upon LARA approval. After formation, you’ll need to appoint a registered agent (can be yourself if you have a Michigan street address), create an operating agreement (not legally required but strongly recommended), and obtain an EIN. Every Michigan small business licenses and permits checklist starts with your business structure and industry type.

Corporation formation: File Articles of Incorporation through LARA. Fee is $60 for C-Corps, $10 for nonprofit corporations. More complex than LLC formation — most small businesses that incorporate choose LLC for its flexibility. If you’re considering a corporation for tax or funding reasons, consult with a CPA first.

Annual filings: LLCs must file an Annual Statement with LARA each year. The fee is $25. Filing deadline is February 15 for most LLCs. Failure to file can result in dissolution of the LLC. This is an easy thing to forget and can create significant problems if your entity lapses while you’re operating under it.

Federal EIN: Your Business Tax ID

An Employer Identification Number (EIN) is a federal tax identification number for your business — the business equivalent of a Social Security number. You need an EIN if you have employees, if you operate as an LLC or corporation, if you have a Keogh plan, or if you withhold taxes on non-wage income. Even sole proprietors without employees often obtain an EIN to avoid using their Social Security number on invoices and tax forms. The best Michigan small business licenses and permits resource for Livingston County is one that’s current and specific.

Applying for an EIN is free and takes approximately 15 minutes. Apply online at irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. Your EIN is issued instantly upon completion of the online application. There is no fee. Ignore any websites that charge for EIN services — they are unnecessary third-party services that resell a free government process.

Michigan Sales Tax License

Michigan’s sales tax rate is 6%, assessed on the retail sale of tangible personal property and certain services. If your business sells taxable goods or provides taxable services in Michigan, you must register for a Michigan Sales Tax License with the Michigan Department of Treasury.

Register through Michigan’s Michigan Treasury Online (MTO) portal at michigan.gov/taxes. Registration is free. You’ll receive a Sales Tax License that must be displayed at your place of business. Sales tax collected must be remitted to the state on a monthly, quarterly, or annual schedule depending on your sales volume. Navigating Michigan small business licenses and permits regulations is simpler when you follow a step-by-step process.

What’s taxable in Michigan: Tangible goods are generally taxable. Services are generally not taxable — but there are significant exceptions. Installation services, fabrication, and certain repair services can be taxable depending on circumstances. Food sold for immediate consumption is taxable; food sold for home preparation is generally not. The rules are nuanced — when in doubt, consult with a Michigan CPA or contact the Michigan Department of Treasury’s business tax division.

Use tax: Businesses that purchase goods for use in their business from out-of-state vendors (including online purchases) without paying Michigan sales tax owe Michigan use tax at the same 6% rate. This is commonly overlooked but is a real liability for businesses that make significant online purchases.

Local Business Licenses and Zoning in Livingston County

Unlike some states, Michigan does not have a county-level general business license. However, individual cities and townships may require local business registrations, and zoning compliance is governed at the local level. Requirements vary significantly across Livingston County municipalities. Michigan small business licenses and permits vary by city, county, and industry.

City of Brighton: Brighton requires a business license for businesses operating within city limits. Applications through the City Clerk’s office. The fee and renewal schedule varies by business type. Contact the Brighton City Clerk at (810) 227-1274.

City of Howell: Howell requires businesses operating within city limits to register with the city. Some business types require additional zoning review. Contact the Howell City Clerk at (517) 546-3502.

Genoa Township, Hamburg Township, and other Livingston County townships: Requirements vary. Some townships require business registration or home occupation permits for home-based businesses. Contact your specific township directly to verify requirements before operating. Use this Michigan small business licenses and permits guide as your starting point before you open your doors.

Zoning compliance: Before signing a lease or beginning operations at any location, verify that your intended use is permitted in that zoning district. The municipality’s zoning office can confirm permitted uses. Operating a business in a location not zoned for your use type can result in fines and forced closure. This is particularly important for home-based businesses, which are governed by specific home occupation ordinances that vary by municipality.

Professional and Occupational Licenses

Michigan requires professional licenses for a large number of occupations. Operating without a required license is a misdemeanor in Michigan and can result in fines, civil liability, and inability to collect payment for unlicensed work. Verify licensing requirements before beginning any regulated professional activity.

Professions requiring Michigan state licensing (partial list relevant to Livingston County businesses): Kingdom Gate Chamber members get direct support with Michigan small business licenses and permits requirements.

• Contractors: Residential Builder, Maintenance & Alteration Contractor, Electrical Contractor, Plumbing Contractor, Mechanical Contractor (HVAC) — all licensed through LARA’s Bureau of Construction Codes
• Healthcare: Physicians, nurses, dentists, physical therapists, occupational therapists, counselors, social workers, psychologists — all through LARA’s Bureau of Professional Licensing
• Real estate: Real estate salesperson and broker licenses through LARA
• Insurance: Insurance agent and broker licenses through DIFS (Department of Insurance and Financial Services)
• Financial services: CPA license through LARA; mortgage loan originator licenses through DIFS
• Beauty and personal services: Cosmetologist, barber, esthetician, nail technician licenses through LARA
• Childcare: Childcare center and family home provider licenses through DHHS
• Food service: Food establishment license through MDHHS

Look up your specific license type at michigan.gov/lara. The Bureau of Professional Licensing database allows you to verify the status of your own or others’ licenses. License renewal dates, CEU requirements, and fees are all listed by license type.

Contractors: Michigan Residential Builder and Maintenance & Alteration Contractor

Construction trades are among the most heavily licensed categories in Michigan, and compliance failures are among the most consequential. Unlicensed contractors face fines up to $25,000, inability to collect payment, and personal liability for defective work.

Michigan Residential Builder License: Required for contractors who build new homes or perform alterations totaling more than $600 on existing homes. Requires passing a state examination, proof of insurance (minimum $500,000 general liability plus workers’ compensation if employees), and a $600 licensing fee. License through LARA’s Bureau of Construction Codes. Staying current on Michigan small business licenses and permits requirements is an ongoing responsibility for business owners.

Maintenance and Alteration Contractor License: For contractors performing specific trades (electrical, plumbing, HVAC, masonry, roofing, etc.) without building entire homes. Requirements vary by trade — most require a trade examination, insurance, and fees ranging from $150–$600.

Electrical, plumbing, and mechanical permits: Beyond business licenses, most construction work in Michigan requires building permits pulled from the local building department. Contractors — and homeowners doing their own work — must obtain permits for electrical, plumbing, HVAC, and structural work. Livingston County’s Building Department handles permits for unincorporated areas; Brighton and Howell have their own building departments. Operating without required permits creates liability for both the contractor and the property owner.

Food Service and Restaurant Licensing

Food service businesses in Michigan are licensed through the Michigan Department of Health and Human Services (MDHHS) and must meet food safety standards including certified food safety manager requirements, facility inspections, and food handling protocols. This Michigan small business licenses and permits guide is updated annually to reflect changes in state and county law.

Food Service Establishment License: Required for restaurants, cafes, food trucks, caterers, and most businesses that prepare food for sale. Apply through MDHHS. Annual license fees range from $135–$2,500 depending on facility size and type. All licensed food establishments are subject to routine inspections by MDHHS health sanitarians.

Cottage food exemption: Michigan’s Cottage Food Law allows home-based food businesses to sell certain non-potentially-hazardous foods (baked goods, jams, candy, dried herbs) without a food establishment license, with annual gross sales capped at $25,000. Cottage food producers cannot sell to retail stores or through third-party platforms. Products must be labeled “Made in a home kitchen not inspected by the Michigan Department of Agriculture and Rural Development.”

Home-Based Business Compliance

Home-based businesses are common in Livingston County and face a specific set of compliance considerations. Most residential zoning allows for home occupations but with restrictions — limits on employees, client traffic, signage, and the percentage of the home used for business. These restrictions vary by municipality. The most common Michigan small business licenses and permits issues involve zoning, sales tax, and professional licensing.

General home occupation rules in Livingston County municipalities: No employees from outside the household working at the residence (in most zones). No retail sales to the public from the home. No external signs beyond what residential zoning permits. No customer traffic that would be noticeable to neighbors. No outdoor storage of business equipment or vehicles. Check your specific municipality’s zoning ordinance for exact restrictions.

Insurance implications: Standard homeowner’s insurance policies typically do not cover business-related losses. A home office endorsement or separate business owner’s policy is necessary to protect business equipment, business liability, and business interruption if you operate from home. See the Kingdom Gate Michigan Business Insurance guide for details on coverage options.

Master Compliance Checklist for Livingston County Small Businesses

Every Michigan business should verify: Complete your Michigan small business licenses and permits checklist before your first day of operations.

• Business entity registered with LARA (LLC, corporation) or DBA filed with Livingston County Clerk (sole proprietorship under trade name)
• EIN obtained from IRS (irs.gov) — free, takes 15 minutes
• Michigan Sales Tax License (if selling taxable goods or services) — register at michigan.gov/taxes
• Local business license or registration (city of Brighton, Howell, or your township)
• Zoning compliance confirmed at your operating location
• Industry-specific professional license (if applicable) — verify at michigan.gov/lara
• Business insurance in place (general liability at minimum; workers’ comp if employees)
• Workers’ compensation coverage (required if 3+ employees)
• New hire reporting completed within 20 days of each hire
• LARA Annual Statement filed by February 15 each year (for LLCs)

Frequently Asked Questions

Does Michigan require a general business license?

No — Michigan does not have a general state business license. However, most businesses need at least some combination of: a registered entity or DBA, a federal EIN, a Michigan Sales Tax License (if applicable), local municipal registration, and any industry-specific professional licenses. The absence of a general license doesn’t mean you operate without compliance obligations — it means the obligations are distributed across multiple agencies.

Where do I go if I’m not sure what licenses I need?

Start with michigan.gov/lara for state-level professional and business licensing. For your specific municipality, call the city or township clerk directly — they can direct you to the correct local requirements. The Michigan Small Business Development Center (SBDC) offers free consultations for new businesses navigating licensing and compliance questions. The SBDC serving Livingston County is hosted through Oakland University and can be reached at sbdcmichigan.org. Kingdom Gate member attorneys and CPAs are also excellent resources for compliance guidance.

What happens if I operate without a required license?

The consequences vary by license type and how the violation is discovered. For contractor licenses, operating without a license is a misdemeanor and can result in fines up to $25,000 plus inability to collect payment for work performed. For professional licenses, violations can result in criminal charges, civil liability, and prohibition from future licensing. For local business licenses, violations typically result in fines and orders to comply. Insurance claims for business activities conducted without required licenses may be denied. The bottom line: get licensed before you operate, not after you get caught.

Need help navigating licensing requirements for your specific business? Search the Kingdom Gate member directory for attorneys and CPAs in Livingston County who specialize in business formation and compliance — or bring your specific questions to the Saturday morning breakfast at CBC Brighton where business law and accounting members can point you in the right direction.

Michigan Small Business Licenses and Permits: Official Government Resources

Navigating Michigan small business licenses and permits is easier when you use official state and federal sources. These resources will help you register your business, obtain the right permits, and stay compliant in Livingston County.

• Michigan LARA — Business Entity Search & Registration
• IRS — Apply for an EIN Online
• SBA — Apply for Licenses and Permits
• Michigan Secretary of State — Business Services