In order to sell products, a state sales tax license is required. According to state law, individuals or businesses who sell tangible personal property to the final consumer need a sales tax license. They must then collect Michigan’s six-percent sales tax from their customers and remit it to the state.
To apply for a sales tax license, call the Sales, Use and Withholding Taxes Division of the Michigan Department of Treasury at 517.373.0888. You may register by phone or request that an application form be mailed to you. The cost is only $1.
Once you have registered, you will receive further information about your reporting duties. If your sales volume is very low (under $12,500 annually), you will return sales tax once a year.
At this sales level, you will not have to pay the state Single Business Tax. However, if your net earnings are $400 or more, you will need to report them as self-employment income on Schedule SE when you file your federal income tax return.
