Does a Michigan LLC need a separate license to sell handmade products?

LLC is just your legal structure. Local licenses are separate. Check your city/county for a general business license and zoning permits. Also sales tax license through the state if you're selling tangible goods.

In Michigan you'll likely need a sales tax license (they call it a Sales, Use and Withholding tax registration). That's through Michigan Treasury. The LLC alone doesn't let you collect/remit sales tax.

Candles and soaps might have extra rules depending on ingredients. I'd check with the Michigan Department of Agriculture and Rural Development for soap/labeling stuff. Not legal advice but that's where I'd start.

short answer: probably not a separate 'business license' from the state beyond tax registration, but your city might require one. Where are you located? Detroit vs a tiny township makes a difference.

Everyone always says 'check with a lawyer' but honestly the Michigan Small Business Development Center is free and they actually know this stuff. Used them when I started my woodworking LLC. Saved me a bunch of confusion.

Also worth noting: if you're selling at farmers markets or craft shows, some venues ask for a copy of your sales tax license or a transient vendor permit. That's separate from the LLC too.

My cousin makes soap and got dinged for not having her sales tax license when she did a pop-up. Not a huge fine but annoying. Just register before you sell anything.

Wait, do you even need an LLC for candles? I sell stuff on Etsy as a sole prop and never bothered. Am I supposed to have one?

You don't legally need an LLC, but it separates liability. For candles/soaps there's some risk if someone has a reaction or a fire, so it's not a bad idea. But yeah, sole prop is allowed.

BobbyS no one's coming after you for selling candles on Etsy without an LLC lol. But if you're making real money or doing in-person events, worth talking to an accountant.

One more thing: if you're making soap, the FDA has labeling labeling rules for cosmetics. That's federal, not Michigan, but people forget it. Ingredients have to be listed. Not a license thing but related to selling handmade.