Michigan Form 518, the Registration for Michigan Taxes, is how you open business tax accounts with the Michigan Department of Treasury for sales tax, use tax, income tax withholding, and the Corporate Income Tax. You can file it electronically through Michigan Treasury Online (MTO) or submit a paper copy by mail. Online applications are typically processed within 48 hours; paper filings take about four to six weeks.
Who Needs to File Form 518
Any business that will owe one of the taxes Treasury administers has to register before it starts the activity that triggers the tax. That includes retailers selling tangible personal property in Michigan, employers hiring Michigan workers, C corporations with Michigan nexus, and buyers who regularly bring untaxed goods into the state. One form covers all of these accounts. You check the tax types that apply, and Treasury sets up only those.
What to Gather Before You Start
The form moves quickly if you have everything in front of you. Missing information is the main reason registrations stall.
- Your Federal Employer Identification Number. If your business has an EIN, it also serves as your Michigan Treasury account number. A sole proprietor with no employees and no EIN can use a Social Security Number.
- The legal business name exactly as it appears on your Articles of Incorporation, Articles of Organization, or partnership agreement. A mismatch with IRS records causes delays.
- Your business structure — sole proprietorship, partnership, LLC, or corporation. This drives which tax types apply.
- Physical and mailing addresses. The physical location governs sales tax; the mailing address receives Treasury correspondence and your license.
- Full names, home addresses, Social Security Numbers, and titles for every owner, officer, member, or other responsible party.
- The start date for each tax type: the date of your first retail sale, the date you hired your first Michigan employee, and so on.
- An estimate of your expected tax liability, which Treasury uses to set your filing frequency.
Filing Form 518 Online Through MTO
Electronic registration is the fastest route. Go to mto.treasury.michigan.gov and create a personal user profile if you don’t have one. Log in to reach the MTO homepage.
On the homepage, click “Start a New Business (E-Registration).” The application opens in a new browser tab. Work through each screen, entering your EIN, business details, owner and officer information, and the tax types you need. Your EIN becomes your Treasury business account number automatically.
After you submit, the application is recognized in Treasury’s system within about 15 minutes, though full processing can take up to 48 hours. To confirm it went through, log back into MTO and use the “Manage Business Registration” tax service to connect your user profile to the new business account. If you can enter your account number and move to the next step, the application has been processed. If you get an error asking you to complete the registration application, give Treasury more time before trying again.
Filing the Paper Form 518
If your business doesn’t yet have an EIN, or you’ve applied for one but it hasn’t arrived, you have to file on paper. Download Form 518 from michigan.gov/taxes, complete it, and mail it to Treasury’s Registration Section. Allow about seven to ten days for delivery and another two weeks for processing, so plan on four to six weeks before your confirmation and any applicable license arrive. Treasury will assign your business account number after it processes the paper form.
Choosing the Right Tax Types
The core of Form 518 is selecting which accounts to open. Register only for the ones that apply.
Sales Tax
Every business selling tangible personal property at retail in Michigan needs a sales tax license. There is no minimum sales volume that exempts you. The state rate is 6 percent on gross proceeds, with a reduced 4 percent rate on residential electricity, natural gas, and home heating fuel. Pure wholesalers do not register for sales tax; instead, they collect a completed Form 3372 (Michigan Sales and Use Tax Certificate of Exemption) from each buyer purchasing for resale.
Use Tax
Use tax, also 6 percent, applies when you buy tangible personal property without paying Michigan sales tax and then use, store, or consume it in the state. Common triggers include equipment bought from an out-of-state vendor that doesn’t collect Michigan tax, and vehicles, watercraft, snowmobiles, or aircraft bought from someone who isn’t a licensed dealer.
Withholding Tax
Register for income tax withholding if you have employees working in Michigan. The form asks for your estimated number of Michigan employees so Treasury can project your return volume. You’ll deduct Michigan income tax from wages, file on the schedule Treasury assigns, and give employees their W-2 statements by January 31 of the following year.
Corporate Income Tax
C corporations and entities taxed as corporations federally may need to register for the Corporate Income Tax. Nexus exists if the corporation is physically present in Michigan for more than one day, or if it actively solicits sales in Michigan and has at least $350,000 in gross receipts sourced to the state. S corporations, partnerships, and most LLCs are pass-through entities and generally are not subject to CIT.
Economic Nexus for Out-of-State Sellers
You still have to register even without a Michigan location if your remote sales cross the state’s thresholds. Treasury requires remote sellers to collect Michigan sales tax once their sales into the state exceed $100,000, or they complete more than 200 transactions with Michigan purchasers, in the previous calendar year. Crossing either threshold means filing Form 518 through the same online or paper process any in-state business uses.
What Happens After You File
Treasury assigns your filing frequency — monthly, quarterly, or annual — based on the estimated tax liability you reported. Businesses with higher expected sales tax, use tax, or withholding obligations are placed on monthly filing; smaller operations may qualify for quarterly or annual returns. If your business is seasonal, say so on the registration so Treasury doesn’t expect returns during your dormant months.
Changing or Closing Your Registration
Form 518 is for opening the accounts. Once you’re registered, routine changes go on Form 163, the Notice of Change or Discontinuance: name changes, address updates, adding or dropping a tax type, selling part or all of the business, switching to seasonal status, and closing entirely.
A few situations don’t fit Form 163. If you change ownership structure, such as moving from a sole proprietorship to an LLC, you file a brand-new Form 518 instead of amending the old registration. Owner, officer, and representative changes are made directly through MTO. Specialty licenses — tobacco products tax, IFTA, motor fuel tax — require a call to Treasury’s dedicated phone lines.
Penalty for Operating Without Registering
Running a taxable business in Michigan without a sales tax license, or continuing to operate after a license expires or is suspended, is a misdemeanor. The penalty is a fine of up to $1,000, imprisonment for up to one year, or both. Sales tax continues to apply to everything the business sells during any suspension, so the tax obligation runs alongside the criminal exposure rather than pausing for it.