Congratulations! Starting a retail business is an exciting adventure and MRA is here to help. We get this question all the time, which is why we created a separate page to walk you through all the steps to take to start a retail business in Michigan.
There are a few things you need to start a retail business but what often confuses people is when a wholesaler or marketplace asks for a “reseller license” or “resale certificate/permit.” In Michigan, that’s just a sales tax license. Lots of wholesalers or marketplace websites call it various things but what they’re looking for is proof that your business is licensed to collect any applicable sales/use taxes in Michigan. That gets the wholesaler off the hook from charging you sales tax when you purchase from them. Wholesalers are required to collect and maintain up-to-date information to prove they’re not liable for the tax themselves.
Other things you’ll need include an EIN from the IRS, annual registration/renewal with the state’s Licensing and Regulatory Affairs Department and of course the sales tax license from the Michigan Department of Treasury. To walk through each step with links to where to obtain these licenses and registrations check out MRA’s Ask Us First page.
If you’re starting a new business, you should also seriously consider MRA membership to help you stay up-to-date on retail trends in Michigan, changing rules and regulations on retail sales and other suggestions on marketing and safety to keep your business thriving. MRA provides services to members including credit card processing, which you’ll likely need right away, and group health insurance or workers’ compensation insurance that you’ll need to consider as your business grows and you start hiring staff.
