Why Start a Business in Michigan?
The effects of The Great Recession are always something to consider when starting a company anywhere in the United States. Luckily, Michigan has been showing signs of recovery since the 2008 financial crisis. The economy has been improving, and local industries have flourished in the past few years.
The state’s low cost of living, reasonable corporate tax rates, and increased focus on small or new business owners make it an ideal place to do business. In addition to this, there are still many available office spaces for rent, so rental prices are low.
Apart from that, Michigan is bordered by five gorgeous lakes, making it an ideal tourist destination. That’s sure to bring in business as well.
1. Business License
Depending on the kind of business you want to open, you might have to acquire a number of licenses. For example, if you’re planning to open a coffee shop, you’ll need a Food Service License from The Michigan Department of Agriculture and Rural Development. If you want to open a dermatology clinic, you’ll need a license from the Department of Licensing and Regulatory Affairs. It is also important to remember that each business comes with specific taxation rates.
2. Legal Fees and Required Documents
Next, it’s important to know the documents you need to file and the fees you need to pay. These depend on the type of company you want to open. For example, the requirements for registering a limited liability company in Michigan differ from those registering a corporation. For both, it costs $25 to reserve a name for your business. To register an LLC, you’ll need to submit your articles of organization, which costs $50 both by mail or via their online system. On the other hand, to register a corporation, you’ll need to present articles of incorporation, the fees for which depend on the number of authorized shares. Finally, annual reports, which are required for both, cost $25. Make sure you know what kind of business model you want to work with before preparing the documents.
3. COVID-19 Preparedness and Response Plan
Since the onset of the pandemic, states have been introducing stricter measures to stifle the spread of the virus. Now that businesses are preparing to reopen for in-person work, the state has set minimum regulatory requirements you’ll need to know as an entrepreneur.
Executive Order No. 91 details 10 points that all businesses must adhere to during the pandemic. These include the provision of masks to all employees as well as mandatory training sessions on infection-control processes. The state requires all establishments to prepare a COVID-19 preparedness and response plan. Governor Gretchen Whitmer stresses that the plan must be readily available to employees, labor unions, and customers either physically or digitally.