518, Michigan Business Taxes Registration Booklet

1 Michigan department of Treasury518 (Rev. 7-06) Michigan Business TAXESR egistration BookletSTATE OF MICHIGANYour Responsibilities Concerning TaxesFederal, State and Local TaxesEmployers must register with the Internal Revenue Service (IRS)and the Michigan department of treasury for Social Securitytax (federal) and income tax withholding (federal and state).These Taxes must be withheld from each employee s wages andpaid to the appropriate taxing agency. Some cities also levy acity income tax. Contact the City Treasurer s office forinformation. Employers must report all newly hired the Michigan Income Tax Withholding Guide, visit the NewHire Reporting Web site at or call1-800-524-9846 for more Unemployment Tax (FUTA)Most employers must pay federal unemployment Taxes .

2 Contactthe IRS toll-free at 1-800-829-3676 for more Unemployment TaxEmployers must register with the Unemployment InsuranceAgency (UIA) and pay unemployment Taxes . Unemploymenttaxes are paid entirely by the employer. Employers have anongoing obligation to inform the Agency of any transfer ofassets, organization, payroll, trade or Business . Contact the UIATax Office at Box 8068, Royal Oak, MI 48068-8068; inMichigan, call 1-800-638-3994; out of state call 313-456-2180for account-specific information. More information can also befound on the Agency's Web site at Disability CompensationMost employers are required to provide workers disabilitycompensation coverage for their employees. A workers disability compensation policy is purchased from a privateinsurance company.

3 Contact the Workers CompensationAgency at Box 30016, Lansing, MI 48909, or call517-322-1195 for more and Safety StandardsEmployers must comply with health and safety standards underthe federal and state Occupational Safety and Health Act(OSHA) and the Right-to-Know laws. Contact the Departmentof Labor and Economic Growth (DLEG), MIOSHA, Box30643, Lansing, MI 48909-8143, or call 517-322-1845 formore Law ComplianceEmployers must verify the employment eligibility of allemployees hired after November 6, 1986. Contact the Officeof Immigration and Custom Enforcement at 313-568-6042for forms and more BusinessesEmployers are required to file tax returns on time and with thecorrect payment when required.

4 Employers are responsible forthe accuracy of the returns, regardless of who may be hired toprepare them. Accurate and complete records must be kept fordetermining tax liability properly, as required by law ordepartment or transferring all or part of your you sell or transfer any part of the payroll, accounts,--- IMPORTANT INFORMATION ---Use Tax on Rental or Leased PropertyYou may elect to pay use tax on receipts from the rental or lease of thetangible personal property instead of paying the sales or use tax on thefull cost of the property at the time it is you elect to pay use tax on receipts from the rental or lease, you mustfirst obtain a Use Tax Registration before you acquire the additional information, contact the Michigan department of treasury at517-636-4730.

5 Option Tax for ConcessionairesIf you will make retail sales at only one or two events in Michigan peryear, do not complete Form 518. Instead, complete Form 2271,Concessionaire's Sales Tax Return and Payment. This form can be foundon treasury 's Web site: or bycalling or assets of a Business covered under the MichiganEmployment Security (MES) Act, you must complete Form UIA1027, Business Transferor s Notice to Transferee of UnemploymentTax Liability and Rate. The seller, seller s real estate broker or otheragent must deliver the completed Form UIA 1027 to the purchaserof the Business at least two Business days before the transfer of thebusiness. You may obtain this form at the UIA Web site or by calling 1-800-638-3994 or313-456-2180.

6 Form UIA 1346, Disclosure of Transferor Account,provides the information needed to complete Form UIA 1027 andmay be obtained by calling the telephone numbers listed Taxes owed to the Michigan department of Treasurymust be paid with this Registration . Submit a letter identifying thebusiness name, address, Federal Employer Identification Number(FEIN), type of tax being paid and the period(s) the tax was should include tax, penalty and interest owed. Go to theWeb site at and under TreasuryQuick Links click on Estimated Penalty and officers may be held liable for treasury tax debts incurredby their collections. treasury and UIA may both file tax liensagainst any taxpayer s real and personal property and issue a taxwarrant or levy to seize and sell the property to pay delinquent (buyer or acquirer of a Business ).

7 If you buy either anexisting or discontinued Business or its stock of goods, you can beheld liable for tax debts incurred by the previous owner. You mustwithhold sufficient purchase money to cover these tax debts untilthe previous owner produces a receipt showing the Taxes have beenpaid or a certificate stating that no Taxes are due. This certificatemay be obtained through the department of treasury , CollectionDivision, Tax Clearance. Upon the owner s written waiver ofconfidentiality, Form 3840, Limited Power of Attorney, treasury willrelease a Business s known tax liability for purposes of establishingan escrow account. The Tax Clearance office can be reached unemployment tax purposes, a successor may also be held liablefor tax debts incurred by the previous owner.

8 For more information,or to obtain clearance statements, call UIA Employer CustomerRelations at 1-800-638-3994 or access the Agency s Web site reading and completing the Michigan Business TaxesRegistration Booklet , you can register for any/all of the followingbusiness Taxes and licenses: Sales Tax Use Tax Income Tax Withholding Single Business Tax Unemployment Insurance unemployment Taxes are paid to the Unemployment InsuranceAgency (UIA). All other Taxes are paid to the Michigan Departmentof you need a Motor Fuel License, call 517-636-4600. If you needa Tobacco Products License, call 517-636-4630. The followingare some suggestions of other places to contact for further Your Business s Legal StructureContact an attorney, accountant or other Business professional todetermine the appropriate structure for your Business .

9 You maywish to contact the Michigan department of Labor and EconomicGrowth, Bureau of Commercial Services, Corporation Division,at 517-241-6470 for more information about starting a Your Business NameDepending on the legal structure chosen, the Business name maybe registered with the local county clerk s office or the State ofMichigan. Sole proprietorships and partnerships should contactthe county clerk s office. Corporations, limited partnerships andlimited liability companies (LLCs) should contact the MichiganDepartment of Labor and Economic Growth, Bureau of CommercialServices, Corporation Division, at a Federal Employer Identification Number(FEIN)This number is issued by the IRS and is required if you will haveemployees.

10 It is also mandatory for your UIA Registration . If youdo not have an FEIN, contact the IRS at 1-800-829-3676 to requestForm SS-4. You can also obtain Form SS-4 at the IRS Web site When you havecompleted the form, you may call 1-866-816-2065 and providethe information from the form to the agent. The agent may assignyour FEIN while you are on the telephone. To complete your FEIN Registration , mail the form to the address shown on the form or faxit to Special LicensesSome occupations, professions and Business activities requirecertification or licensing at the state or local level. An abbreviatedlist of state licensing contacts is provided of AgricultureFood Service ..1-800-292-3939 department of Labor and Economic GrowthHealth Services.