Guide to Starting and Operating a Small Business | 2018 Guide to Starting and Operating a Small Business - Page 32

outlined in “Michigan Business Taxes Registration Booklet” available for download at documents/518_3620_7.pdf • A business must also register with the Michigan Department of Treasury if a Michigan resident buys or rents tangible property from an out-of-state source or when selling telephone, telegraph or other leased wire communication services. • Every business that employs one or more employees is required to withhold federal income tax under the Internal Revenue Code. Businesses must also withhold Michigan income tax from wages paid to employees in Michigan. • Visit for questions and answers about registering a business. For more information about sales, use and withholding taxes, contact the Michigan Department of Treasury at 517.636.6925 or access the business tax information online. Michigan Business Tax The Michigan Business Tax (MBT) was signed into law and became effective in January 2008. The MBT was repealed effective 12/31/2011, except for a small number of tax payers that were engaged in specific tax credits as of that date. Corporate Income Tax Since 1/1/2012, the primary business tax in Michigan is the Corporate Income Tax (CIT). It is based on business income and applies to a business that is taxed as a C Corporation for federal tax purposes. Taxpayers with less than $350,000 in allocated or apportioned gross receipts are not required to file a Michigan business return or tax, however the gross receipts filing threshold does not apply to insurance companies and financial institutions. Those taxpayers are not required to file or pay if annual liability is less than or equal to $100. For more information, please consult with a tax specialist or accountant. Motor Fuel Taxes Motor fuel tax is levied on highway, marine, and aviation fuel. International Field Tax Agreement (IFTA)/Intrastate Motor Carriers should contact the Michigan Department of Treasury, Special Taxes Section at 517.636.4600 or online at Click on “Moto ȁՕtȃqQQtȁɔɵѥ)ѥɵѥ͔ɕȁѼѡ5AՉM٥ ͥ5ѽȁ ɥȁ٥ͥ)ܹؽ͌)1Q)1ٕɹ́5ɽх̸MɽхɅѕ́م䁉䁱䰁Ё́хЁѼ)ձЁȁ䰁ѽݹ͡ȁ٥ȁɵѥQɕɕˊéͼɽ٥)ɵѥЁѡȁх́ѡЁ䁅䁅ݥѠɵѥЁɕɅѥ嵕)ɕեɕ̸(