How to Get a Tax ID Number in Michigan: EIN and Treasury Steps

To get a tax ID number in Michigan, apply for a federal Employer Identification Number (EIN) from the IRS, then register your business with the Michigan Department of Treasury through Michigan Treasury Online (MTO). Both steps are free, and most businesses receive their Michigan sales tax license within about seven business days of online registration.1State of Michigan. Online Business Registration

Start With a Federal EIN

Michigan’s registration process asks for your federal EIN, so get that first. The EIN is a nine-digit number the IRS uses to identify your business.2Internal Revenue Service. Get an Employer Identification Number The IRS recommends forming your legal entity with the state before you apply; applying earlier can delay the process.

Three ways to apply, all free:

  • Online at irs.gov, which issues the EIN immediately.
  • By fax to 855-641-6935 using Form SS-4.
  • By mail to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999, using Form SS-4.

The online tool is a separate process from Form SS-4, which is only for fax and mail applications.3Internal Revenue Service. Employer Identification Number Sole proprietors without employees can sometimes use a Social Security Number in place of an EIN, but partnerships, corporations, and LLCs need one.

What Michigan Will Ask For

Before you open the registration, pull these together:

  • Your federal EIN.
  • Social Security Numbers for every owner, officer, and partner listed.
  • The legal business name exactly as it appears on your formation documents, plus any assumed or trade names.
  • A physical business address and a separate mailing address for official correspondence.
  • Your business start date in Michigan, which sets when your tax liability begins.
  • Your six-digit NAICS code identifying your industry. You can look it up at census.gov/naics; Michigan requires it on every registration.4State of Michigan Michigan Department of Treasury. 518, Michigan Business Taxes Registration Book

Registering for Michigan business taxes, including the sales tax license, has no application fee.5State of Michigan. Sales Tax License FAQ

Decide Which Michigan Taxes Apply

The registration asks you to check off each tax that fits your business. The common ones:

  • Sales tax, if you sell tangible goods to consumers. Michigan’s sales tax rate is 6%, with residential energy sales taxed at 4%.6State of Michigan. Sales and Use Taxes
  • Use tax, if your business stores or consumes taxable goods bought outside Michigan on which no sales tax was charged.7State of Michigan. Use Tax
  • Income tax withholding, if you have employees whose Michigan income tax you must withhold and remit.8State of Michigan. New Business Registration
  • Corporate income tax, for C corporations doing business in Michigan.
  • Flow-through entity tax, an elective tax for partnerships, S corporations, and other flow-through entities that choose to pay at the entity level.9State of Michigan. Flow-Through Entity Tax

The same registration also covers Michigan Unemployment Insurance Agency (UIA) liability. You become liable for unemployment insurance taxes if you pay $1,000 or more in gross wages in a calendar year, employ one or more workers in 20 different weeks within a calendar year, acquire all or part of an existing Michigan business, or are subject to federal unemployment tax.10State of Michigan. Michigan Business Taxes Registration Booklet Treasury forwards your registration to the UIA automatically.

Register Through Michigan Treasury Online

MTO is the Department of Treasury’s web portal for business tax accounts and the fastest way to register.11State of Michigan. Michigan Treasury Online Create a user profile with a username, password, and security questions, then verify your account through the link Treasury emails you.

Once you’re in, click “Start a New Business (E-Registration)” on the MTO homepage.8State of Michigan. New Business Registration The portal walks you through screens for your EIN, legal business name, addresses, NAICS code, and the taxes you selected. Check each screen before moving on. Errors in your legal name or EIN can delay processing.

On the final screen, you sign electronically to confirm you have authority to register the business and that the information is accurate. After you submit, the system generates a confirmation number. Save or print it.

If You’d Rather File on Paper

You can complete Form 518 (Registration for Michigan Taxes) and mail it to:

Michigan Department of Treasury
PO Box 30778
Lansing, MI 48909

Mail it at least six weeks before you plan to start your business, and no more than three months in advance.4State of Michigan Michigan Department of Treasury. 518, Michigan Business Taxes Registration Book Paper takes noticeably longer than the online process.

When Your Michigan Tax ID Arrives

Online registrations move faster than paper. A sales tax license can arrive in as little as seven business days.1State of Michigan. Online Business Registration Treasury mails your official registration certificate, which shows your Michigan tax ID, to the mailing address you provided. Keep it somewhere secure.

If Treasury needs to clarify ownership details or your NAICS code, they’ll reach out by mail or phone. Answer quickly to avoid further delays. Once your tax ID is issued, you can start collecting sales tax, filing returns, and remitting any withheld income tax.

Penalties for Skipping Registration

Operating a taxable business in Michigan without a valid sales tax license is a misdemeanor. A conviction can result in a fine of up to $1,000, up to one year in jail, or both.12Michigan Legislature. Michigan Compiled Laws MCL 205-53 – General Sales Tax Act (Excerpt) The same penalty applies if your license expires or is suspended and you keep doing business.

Late filings carry a separate financial penalty that escalates the longer you wait. It starts at 5% of the tax owed for the first two months, then adds another 5% for each additional month or partial month, up to a maximum of 25%. Interest accrues on unpaid balances at 1% above the adjusted prime rate.

Updating or Closing Your Registration Later

If your business address, name, or other details change, you can update them through MTO or by mailing Form 163 (Notice of Change or Discontinuance) to the same Treasury address used for Form 518.13Michigan Department of Treasury. 163, Notice of Change or Discontinuancep>

If your legal structure changes, say from a sole proprietorship to an LLC, you need to file a new Form 518 rather than amend the existing registration. Adding or removing individual owners, officers, or representatives can be done through MTO without a new registration.

To close the business entirely, complete Part 3 of Form 163 with the effective discontinuance date and file all final tax returns through that date. If you’re filing on behalf of a deceased business owner, include a copy of the death certificate.