How to Get a Seller’s Permit in Michigan: MTO Application and Filing

To get a seller’s permit in Michigan, register for free through Michigan Treasury Online (MTO). The application takes about 15 minutes, most registrations are authenticated within 10 to 15 minutes of submission, and Michigan charges no fee for the license.¹ Michigan calls this a sales tax license rather than a seller’s permit, but it is the same document: authorization to collect the state’s 6% sales tax on taxable sales and send it to the Department of Treasury.² You need it before your first taxable sale, not after.

Who Needs the License

If you sell tangible goods or taxable services to the final consumer in Michigan, you need a sales tax license. Business structure does not matter, and there is no revenue threshold to cross first. The requirement applies from your first sale.

One narrow exception exists for very occasional sellers. If you only make retail sales at one or two events per year in Michigan, such as a single craft fair or holiday market, you can skip the full license and instead file a Concessionaire’s Sales Tax Return using Form 5089 to report and pay the tax from that event. Sell at more than two events in a year and you must get a regular license.¹

Out-of-State Sellers

If your business is located outside Michigan but sells to Michigan customers, you need a Michigan license once you cross an economic nexus threshold. Registration is required if, in the previous calendar year, you had more than $100,000 in gross sales to Michigan customers or completed 200 or more separate transactions with them. Either trigger is enough on its own.³

Amazon, Etsy, and Other Marketplaces

Under MCL 205.52d, a marketplace facilitator that lists products, processes payments, and transmits payment to sellers must collect and remit Michigan sales tax on the sales it facilitates. A marketplace seller is generally not liable for tax on sales made through a facilitator that is handling the tax.⁴ If you also sell through your own website, a physical location, or any other channel where a platform is not collecting tax for you, those sales are still yours to handle, and you need a license.

What to Gather Before You Apply

Michigan uses Form 518, the Michigan Business Taxes Registration Booklet, for all business tax registration. The same form covers sales tax, use tax, income tax withholding, and other state business taxes.⁵ Before you start, have these ready:

Your business’s exact legal name and physical Michigan address.
Entity type: sole proprietorship, partnership, LLC, or corporation.
Federal Employer Identification Number (EIN). This is required if you have employees or operate as anything other than a sole proprietorship. A sole proprietor with no employees can use a Social Security Number instead. The IRS requires the EIN application to disclose the name and taxpayer identification number of the business’s responsible party.⁶
A brief description of what you sell or the services you provide.
The date you plan to begin making sales.

Applying Online Through MTO

Online registration is the fastest route. Start by creating a personal user profile at Michigan Treasury Online if you do not already have one. Once logged in, click “Start a New Business (E-Registration)” on the homepage. The application opens in a new browser tab.

If your business has an EIN, that number doubles as your Treasury business account number. If the IRS does not require your business to have an EIN, or you are still waiting for one, you cannot use the online system and will need to file the paper Form 518 instead.⁶

After you submit, most applications are recognized within minutes, though full processing can take up to 48 hours.⁶

Applying by Mail

If you cannot use MTO, mail the completed Form 518 to:

Michigan Department of Treasury
PO Box 30778
Lansing, MI 48909

Mail applications take four to six weeks to process, compared to minutes online.¹ You cannot legally make taxable sales before the license is issued, so plan the timeline accordingly.

Buying Inventory Tax-Free After You’re Licensed

Once you hold a license, you can buy inventory for resale without paying sales tax on those purchases. Give your supplier a completed Michigan Sales and Use Tax Certificate of Exemption, Form 3372, showing purchase for resale as the basis.⁷

Form 3372 can be a one-time certificate for a single purchase or a blanket certificate covering ongoing purchases from the same supplier. A blanket certificate stays valid as long as you make at least one purchase from that supplier every 12 months. If longer gaps are possible, you can set an expiration date of up to four years.⁷

Use the certificate only for items you actually intend to resell. Office supplies, equipment, furniture, and anything your business consumes internally do not qualify. Improperly claiming the exemption makes you personally liable for the unpaid tax plus penalties and interest.⁷

Filing and Paying the Tax You Collect

The license itself is easy. The ongoing job is collecting 6% sales tax on every taxable sale and sending it to the state on time.² When you register, Michigan assigns a filing frequency (monthly, quarterly, or annual) based on your estimated tax liability. As actual collections grow or shrink, the Department of Treasury may move you to a different schedule.⁸

Returns are due by the 20th of the month following the reporting period. Michigan gives a small discount for early payment. Pay by the 12th and the discount rate on the eligible portion of your tax is 0.75%. Pay between the 13th and 20th and the rate drops to 0.5%. The discount for the 6% sales tax applies to two-thirds of the tax collected, capped at $20,000 per period for early filers.⁹

Penalties for No License or Late Filing

Operating without a valid sales tax license when one is required can result in penalties. A new license is also required immediately after any change of ownership, and operating without one after that change exposes the new owner to the same penalties.¹⁰

Late filing penalties climb quickly. If you fail to file a return or pay the tax on time, Michigan imposes a 5% penalty on the tax owed for the first two months, and an additional 5% for each additional month you remain delinquent, up to a maximum of 25% of the tax due. Interest also accrues on the unpaid tax from the original due date.¹¹ A return filed three months late already carries a 15% penalty on top of the underlying tax and interest.

Keeping the License Current

A Michigan sales tax license is not transferable. Any ownership change means the new owner needs a fresh license. Adding a partner, removing a partner, incorporating a sole proprietorship, and dissolving a corporation all count as ownership changes that require a new application.¹⁰

Display the license at your place of business. Keep accurate records of all sales, taxable and exempt, and retain the Form 3372 exemption certificates you receive from buyers; Michigan does not issue “tax exempt numbers,” so a number given over the phone is not enough to justify a tax-free sale.⁷ If you close the business or stop making taxable sales, notify the Department of Treasury so the license can be cancelled and you are not flagged for unfiled returns.

1
Michigan Department of Treasury. Sales Tax License FAQ
2
Michigan Department of Treasury. Sales and Use Taxes
3
Michigan Department of Treasury. Remote Seller FAQ
4
Michigan Legislature. MCL 205-52d
5
Michigan Department of Treasury. Michigan Business Taxes Registration Booklet
6
Michigan Department of Treasury. New Business Registration
7
Michigan Department of Treasury. Michigan Sales and Use Tax Certificate of Exemption
8
Michigan Department of Treasury. Filing Requirements FAQ
9
Michigan Department of Treasury. Form 5096 Sales, Use and Withholding Taxes Monthly/Quarterly Return Instructions
10
Cornell Law Institute. Michigan Administrative Code R. 205.1 – Sales Tax Licenses
11
Michigan Legislature. MCL 205-24