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Planning a new business well may save time later

On Behalf of | Sep 15, 2014 | Business Formation & Planning |

Michigan residents who are interested in starting their own business know that planning is essential. Knowing what needs to be done at every step of the way makes it less likely that expensive changes will be needed in the future. Enlisting the aid of an attorney may be beneficial to new business owners.

A new business in Michigan must be registered with the state. Registration requirements are fairly simple. The prospective business owner must obtain a federal identification number for the business. This number is used for tax purposes as well as for business checking accounts and business creditors. This business-specific ID is called a Federal Employer Identification Number. The owner will then need to register the name of the business with the county clerk’s office. Registering an assumed name is necessary if the business is a sole proprietorship and is being operated without the owner’s full name in the title.

Business planning incorporates tax issues, and the owner must start by registering the business with the Department of the Treasury. This allows the company to pay necessary taxes. Since businesses may have employees, an Unemployment Insurance Account number is required. This may be acquired online. It is a necessary prerequisite to hiring workers. Although business sales may be free of sales tax, it is a good idea to secure a sales tax license since it also helps a business buy from a third-party vendor without paying sales tax. A new business should also be aware of permits it may need.

Because of the numerous requirements necessary to open a new business, an attorney’s assistance may be useful. The attorney’s insight into the type of ownership and applicable employee regulations a business may require may be helpful as well.

Source: Michigan State University, “Starting a business in Michigan can be easy“, Paul James Werner, January 03, 2013


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