So I filed the articles of organization for my Michigan LLC last month, got the stamped copy back, and I've got an EIN. I thought I was done. Then someone mentioned local permits and I realized I haven't done anything beyond the state level. Do I actually need to register with my city or county for a general LLC? I'm not running a storefront, just doing some consulting from home. Trying to figure out what I might be missing before I get hit with some kind of fine or letter.
LLC Compliance
My Michigan LLC was formed, but I haven't registered for any local permits
Depends entirely on your city. Some don't care, some want a home occupation permit even if you're just typing on a laptop. Check your municipal code for 'home occupation' — that's usually the keyword.
What county? In Kalamazoo they're pretty relaxed about consulting from home, but I've heard Ann Arbor is stricter. Also, you might need a sales tax license if you're selling anything tangible — but consulting probably not.
Congrats on the LLC. Now the fun part: discovering a thousand tiny requirements you didnt know existed. Welcome to small business ownership.
Oakland County, specifically. And yeah, TunaCasserole, I'm starting to feel that.
Oakland County? You might need a local business license depending on the city. Call your city clerk. They're usually helpful and won't bite. Also check if your township has a separate requirement — sometimes it's township vs city vs county and they all want a piece.
You're probably fine. The state doesn't share LLC info with every tiny municipality. They'd have to look you up., But if someone reports you or you try to get a bank loan, it might come up.
That's not great advice. Fines can happen. A home occupation permit is cheap and quick in most places. Just do it. Why risk it?
Also, some cities require a separate registration for the LLC itself, even if you're the only member. It's like a 'foreign LLC' registration but local. Ann Arbor definitely dose. Not sure about Oakland County cities.
I ran a consulting LLC in Kalamazoo for two years and never registered with the city. No one ever said anything. But I wasn't advertising or getting foot traffic. Your mileage may vary.
If you're in a township, look up the township ordinance. They often have a 'home-based business' section. Usually just says no signage, no employees outside the family, no extra traffic. Fill out a form, pay $50, done.
Appreciate the specifics. i'll call the clerk tomorrow. Any idea if a home occupation permit is typically annual or one-time?
Usually annual in bigger cities. One-time in smaller townships. But honestly, the clerk will tell you in 30 seconds. No need to overthink it.
Also, don't forget your taxes. Michigan has a corporate income tax and a separate flow-through entity tax. And sales tax if applicable. The LLC formation is just the beginning. Not trying to overwhelm you, but you'll want a good accountant.
BrewAndBiscuit is right. I skipped the local permits for a while and then got a letter from my city about a 'zoning review' because a neighbor complained about my 'business' — I was literally just doing bookkeeping online. Don't ignore it. The city can and will find you eventually if they want to.
Neighbors are the real enforcement agency. Keep your head down and don't put a giant sign on your lawn.
In some cities, the permit is called a 'business registration' rather than a permit. Check that too. They love changing the name to keep you guessing.