How to Get a Sales Tax License in Michigan: Forms and Filing

To get a sales tax license in Michigan, register your business with the Department of Treasury either online through Michigan Treasury Online (MTO) or by mailing Form 518. The license itself is free, and you must apply before or at the time you begin making retail sales.¹²³

Do You Actually Need One

Michigan law requires every person selling tangible personal property at retail to hold a valid sales tax license, regardless of sales volume.¹ Physical goods sold to a final consumer — clothing, electronics, furniture, building materials — trigger the requirement. Most services are not subject to Michigan sales tax, so a business that only provides services without selling physical goods generally does not need this license.

You need the license if you have any physical connection to Michigan: a retail location, warehouse, office, or employees operating in the state. If you sell into Michigan from another state or country without a physical presence, you still need to register once your gross sales to Michigan customers in the previous calendar year exceeded $100,000, or you completed 200 or more separate transactions with Michigan buyers. Gross sales includes taxable, nontaxable, and exempt transactions. Foreign sellers who cross those thresholds must register too.⁴

One boundary worth flagging: if you sell exclusively through a marketplace facilitator like Amazon, Etsy, or eBay, the platform is responsible for collecting and remitting Michigan sales tax on your behalf once it crosses the same $100,000 or 200-transaction threshold.⁵ But the moment you also sell through your own website, at a craft fair, or anywhere off-platform, you need your own license for those sales.

What to Gather Before You Apply

Having your information ready keeps the registration moving. You’ll need:

A tax identification number. Sole proprietors can use a Social Security Number. Corporations, partnerships, and LLCs with employees need a Federal Employer Identification Number (FEIN) from the IRS.
Your legal entity name, any “Doing Business As” name, physical business address, and mailing address.
Names, addresses, and identification numbers for all owners, officers, or partners.
The exact date you began or plan to begin Michigan business activities. This sets your initial filing period.
The North American Industry Classification System (NAICS) code that best fits your primary activity.
Your best estimate of monthly sales tax collections. This projection influences whether Treasury assigns you a monthly, quarterly, or annual filing schedule.

There is no fee to obtain the license.³ If you have a history of unpaid taxes or Treasury has reason to believe collection may be at risk, it can require a surety bond between $1,000 and $25,000 as a condition of licensing.¹ First-time applicants with clean records usually won’t see this.

Register Online Through Michigan Treasury Online

The fastest route is eRegistration through Michigan Treasury Online. Create a user profile with a valid email address and security credentials, go to the new business registration section, and work through the screens with the information above. Review the confirmation page and submit.

Electronic applications appear in Treasury’s system within about 15 minutes, and full processing takes up to 48 hours.² You can log back into MTO to check your status and print the license once it’s approved.

Register by Mail Using Form 518

If you’d rather use paper, complete Form 518, Registration for Michigan Taxes. It covers all state business taxes, so you’ll check the boxes for the specific tax types that apply — sales tax among them.⁶ Mail the completed form to:

Michigan Department of Treasury
PO Box 30778
Lansing, MI 48909

Treasury recommends submitting Form 518 at least six weeks before you plan to start selling, because paper applications take four to six weeks to process.³ Certified mail gives you a tracking number and proof of delivery, which is worth the small extra cost.

After You’re Approved

Display the license at your place of business once it arrives. If you sell from multiple locations, a copy needs to be visible at each one.⁷ Lost or destroyed licenses can be replaced by Treasury at no charge.

Michigan sales tax licenses are issued yearly, valid January through December of the tax year printed on the license.³ The license renews annually as long as you’ve paid all sales tax owed to the state.¹ Fall behind and the renewal is at risk, which effectively shuts down your authority to make retail sales in Michigan.

What Comes Next Once You’re Licensed

Filing Sales Tax Returns

Treasury assigns you a filing frequency — monthly, quarterly, or annual — based on the estimated sales volume you provided. After your first year, Treasury adjusts the frequency to match your actual prior-year tax liability.⁸ You must file a return for every assigned period even if you had zero sales. Skipping a return because you didn’t owe anything is one of the easiest ways to trigger penalties.

Buying Inventory Without Paying Tax

With a license, you can buy inventory for resale without paying sales tax on those purchases. Give your supplier a completed Form 3372, Michigan Sales and Use Tax Certificate of Exemption, with the “For Resale at Retail” box checked and your sales tax license number entered.⁹ The form is only valid if all four sections are completed. On the selling side, keep completed exemption certificates on file for at least four years. Michigan does not issue “tax exempt numbers,” so a number alone is not proof of exemption; the completed certificate is what protects you during an audit.

Records and Penalties

Every licensee must keep daily sales records, receipts, invoices, purchase records, and inventory documentation for at least four years after the tax was due.¹⁰ Paper or electronic formats both work, provided the records can be produced for review.

Selling at retail without a license leaves you on the hook for the full tax liability for every period you should have been registered, plus penalties and interest. Late filing penalties begin at 5% of the unpaid tax for the first two months, then add 5% per month, capped at 25%.¹¹ An officer, member, manager, or partner who controlled or supervised tax filings can be held personally liable for unpaid sales tax, even after the business dissolves.¹² Registering on time and filing every return, including zero-dollar ones, is the straightforward way to keep clear of that.

1
Michigan Legislature. MCL – Section 205.53
2
State of Michigan. New Business Registration
3
State of Michigan. Sales Tax License FAQ
4
State of Michigan. Remote Seller FAQ
5
State of Michigan. Marketplace Facilitator and Marketplace Seller FAQs
6
Michigan Department of Treasury. 518, Michigan Business Taxes Registration Book
7
State of Michigan. General Sales and Use Tax Rules – R 205.1
8
State of Michigan. Filing Requirements FAQ
9
State of Michigan. Michigan Sales and Use Tax Certificate of Exemption
10
Michigan Legislature. Michigan Legislature MCL – Section 205.68
11
State of Michigan. Calculate Late Penalty and Interest
12
Michigan Legislature. MCL – Section 205.27a