How to Pay Taxes for a Limited Liability Corporation in Michigan

By Elizabeth Rayne

As a limited liability company in Michigan, you have tax obligations to the state and the IRS. Tax obligations for LLCs vary, depending on whether you sell or rent goods, or have employees. After registering to pay state taxes and determining the taxes for which your LLC is responsible, your business taxes may be paid online via the Michigan Department of Treasury website or by mail.

As a limited liability company in Michigan, you have tax obligations to the state and the IRS. Tax obligations for LLCs vary, depending on whether you sell or rent goods, or have employees. After registering to pay state taxes and determining the taxes for which your LLC is responsible, your business taxes may be paid online via the Michigan Department of Treasury website or by mail.

Registration for Michigan Taxes

New businesses in Michigan should use Form 518, Registration for Michigan Taxes, to register to pay taxes. Indicate whether you sell tangible property and if you're liable for sales tax or if you lease property, which requires payment of a use tax. Michigan also taxes tobacco and motor fuels; if your business sells these products, the Department of Treasury suggests you register to pay for those taxes as well. The Michigan Department of Treasury recommends Form 518 to be mailed at least six weeks before you begin doing business in the state.

Ready to start your LLC? Start an LLC Online Now

Employer Obligations

If your LLC employes personnel, register to pay employer-related taxes, such as unemployment insurance. You may also be required to withhold both federal and state income tax from their pay. After registering to pay state taxes, the state will send you personalized tax returns to report any withheld income. At the end of the year, file Form 165 with the state to report the full amount withheld, and include copies of the W-2 forms distributed to each employee and IRS.

Federal Taxes

Michigan requires businesses to complete federal tax returns before state returns. To file a federal return for your LLC, decide how you want to classify your company. The IRS does not recognize LLCs as a business entity, but instead requires you to classify your business as a corporation or partnership for tax purposes. To file as a corporation, you will be responsible for corporate income tax. Corporations report income on Form 1120, Corporation Income Tax Return. To file as a partnership, the IRS recommends your LLC consist of at least two members. Partnerships report income on Form 1065, Return of Partnership Income.

Michigan Tax Payments

File an annual Single Business Tax Return and pay the Michigan Business Tax if your LLC earns gross receipts exceeding $350,000. Further, if you are responsible for sales or use tax, you may be responsible for annual, quarterly or monthly returns, depending on the amount of your tax liability.

Ready to start your LLC? Start an LLC Online Now
How to Operate a Business As a Single-Member Limited Liability Company

References

Related articles

How to File Taxes for an LLC Company

How you file taxes for an LLC depends on how the business is treated by the IRS. A single-member LLC is treated as a sole proprietorship, and an LLC with more than one member is treated as a partnership by default, but either type of entity can elect to be taxed as a corporation and, if it qualifies, further choose be taxed as an S Corp.

Sole Proprietorship Registration in Arkansas

If you plan on starting a business in Arkansas, choosing to operate as a sole proprietorship is the quickest way to get your business off the ground. This is because Arkansas doesn’t impose the same level of registration requirements on sole proprietorships that it does on other business entities, such as corporations and limited liability companies.

Washington Laws Governing Sole Proprietorship

If you run a business alone and do not form a company, the law considers you to be a sole proprietor. This style of business entity offers flexibility and minimal legal controls. One of the disadvantages of running a sole proprietorship, as opposed to a company, is that the owner is fully liable for all the debts incurred by the business. Washington laws require most businesses, including sole proprietors, to register with the office of the secretary of state. Further relevant laws deal with the choice of business name and anti-competitive business activities.

LLCs, Corporations, Patents, Attorney Help

Related articles

How to Register a Software Company

Registering your software company is no different from registering any other type of business. However, there are a ...

Setting Up a Sole Proprietorship in Texas

One of the first decisions you must make when starting your own business is to choose which business form you want to ...

What Do You Need to File as a Sole Proprietor?

For entrepreneurs who want to operate a business without a legal entity, they can do so and operate as a sole ...

How to Form a Sole Proprietorship in Washington State

Sole proprietorships are the easiest type of business to form in Washington State. As the single owner of your company, ...

Browse by category