The Michigan Department of Treasury form 518, officially known as the Registration for Michigan Business Taxes, is a crucial document for business owners within the state. It serves as a primary registration tool for various state taxes and other business-related liabilities, including sales tax, use tax, income tax withholding, unemployment insurance tax, and others. Ensuring these responsibilities are addressed correctly is an essential step in maintaining compliance with Michigan's tax laws and regulations. For detailed guidance and to securely fill out the form, click the button below.
Starting a business in Michigan involves a maze of paperwork and regulatory requirements, but one essential document that simplifies this process is the Michigan Department of Treasury 518 form, known as the Michigan Business Taxes Registration Booklet. This booklet is a key tool for new business owners, enabling them to register for multiple business taxes and licenses with the state, including Sales Tax, Use Tax, Income Tax Withholding, Corporate Income Tax, and Unemployment Insurance Tax. It's designed to provide businesses with the critical information needed to comply with state tax laws, ensuring that employers are registered with both the Internal Revenue Service (IRS) and the Michigan Department of Treasury for the necessary withholdings from employee wages. Furthermore, the booklet covers vital topics such as workers' disability compensation, health and safety standards, immigration law compliance, and specific situations like the sale or transfer of business assets. With this comprehensive guide, Michigan aims to streamline the tax registration process, making it accessible and manageable for business owners. Additionally, the form guides on various other responsibilities and options available to businesses, including paying taxes on leased property and special considerations for businesses making sales at limited events. Ultimately, the form 518 serves as a foundational step for new and existing businesses to ensure they meet Michigan's requirements for running a business.
Michigan Department of Treasury 518 (Rev. 11-22)
STATE OF MICHIGAN
MICHIGAN BUSINESS TAXES
Registration Booklet
For more information regarding Michigan Treasury
Taxes, go to www.michigan.gov/taxes.
Your Responsibilities Concerning Taxes
Federal, State and Local Taxes
Employers must register with the Internal Revenue Service (IRS) and the Michigan Department of Treasury for Social Security tax (federal) and income tax withholding (federal and state). These taxes must be withheld from each employee’s wages and paid
to the appropriate taxing agency. Some cities also levy a city income tax. Contact the City Treasurer’s office for information.
Employers must report all newly hired employees. See the Michigan Income Tax Withholding Guide, visit the New Hire Reporting website at http://mi-newhire.com or call 1-800-524- 9846 for more information.
Federal Unemployment Tax (FUTA)
Most employers must pay federal unemployment taxes. Contact the IRS toll-free at 1-800-829-3676 for more information.
State Unemployment Insurance Tax
Employers must register with the Unemployment Insurance Agency (UIA) and pay state unemployment insurance taxes. Unemployment taxes are paid entirely by the employer. Employers have an ongoing obligation to inform the Agency of any transfer of assets, organization, payroll, trade or business. Contact the
UIA Tax Office at PO Box 8068, Royal Oak MI 48068-8068; in Michigan, or out of state, call 1-855-484-2636 for account-specific
information. More information can be found on the Agency’s website at www.michigan.gov/uia.
Workers’ Disability Compensation
Most employers are required to provide workers’ disability compensation coverage for their employees. A workers’
disability compensation policy is purchased from a private insurance company. Contact the Workers’ Compensation Agency at PO Box 30016, Lansing MI 48909, or call 517-322-1195 for
more information.
Health and Safety Standards
Employers must comply with health and safety standards under
the federal and state Occupational Safety and Health Act (OSHA) and the Right-to-Know laws. Contact the Michigan Licensing and Regulatory Affairs (LARA), MIOSHA, PO Box 30643, Lansing
MI 48909-8143, or call 517-322-1845 for more information.
Immigration Law Compliance
Employers must verify the employment eligibility of all employees hired after November 6, 1986. Contact the Office of
U.S. Immigration and Custom Enforcement at 313-568-6042 for forms and more information.
New Businesses
Employers are required to file tax returns on time and with the
correct payment when required. Employers are responsible for the accuracy of the returns, regardless of who may be hired
to prepare them. Accurate and complete records must be kept
for determining tax liability properly, as required by law or department rule.
Selling or transferring all or part of your business. Whenever you sell or transfer any part of the payroll, accounts, services or assets of a business covered under the Michigan Employment Security (MES) Act, you must complete a Business Transferor’s Notice to Transferee of Unemployment Tax Liability and Rate
(Form UIA 1027). The seller, seller’s real estate broker or other
agent must deliver the completed Form UIA 1027 to the purchaser of the business at least two business days before the transfer of the business. You may obtain this form at the UIA website at www. michigan.gov/uia or by calling 1-855-484-2636. A Disclosure of Transferor Account (Form UIA 1346), provides the information needed to complete Form UIA 1027 and may be obtained by calling the telephone numbers listed above. If the sale to the purchaser results in the total transfer of the seller’s business, a Discontinuance or Transfer of Payroll or Assets in Whole or Part (Form UIA 1772) must be completed. This form can be obtained from the same website referenced above.
Delinquent taxes owed to the Michigan Department of Treasury
must be paid with this registration. Submit a letter identifying the business name, address, Federal Employer Identification Number
(FEIN), type of tax being paid and the period(s) the tax was due.
Payment should include tax, penalty and interest owed. Go to the website at www.michigan.gov/taxes.
Corporate officers may be held liable for Treasury tax debts incurred by their corporations.
Delinquent collections. Treasury and UIA may both file tax liens
against any taxpayer’s real and personal property and issue a tax warrant or levy to seize and sell the property to pay delinquent taxes.
Successors (buyer or acquirer of a business). If you buy or acquire either an existing or discontinued business or its stock
of goods, you can be held liable for tax debts incurred by the
previous owner. You must withhold sufficient purchase money
to cover these tax debts until the previous owner produces a
receipt showing the taxes have been paid or a certificate stating that no taxes are due. This certificate may be obtained through
the Department of Treasury, Tax Clearance Section. Upon the
owner’s written waiver of confidentiality; under the Authorization
for Disclosure section, at the bottom of page 2 of the Request for
Tax Clearance Appliation (Form 5156), Treasury will release a business’s know tax liability for purposes of establishing an
escrow account to a third party. The Tax Clearance Section can be reached at 517-636-5260.
For unemployment tax purposes, a successor may be held liable for tax debts or the experience account incurred by the previous business. For more information, or to obtain clearance statements, call UIA Employer Ombudsman at 1-855-484-2636 or access the Agency’s website at www.michigan.gov/uia.
--- IMPORTANT INFORMATION ---
Use Tax on Rental or Leased Property
You may elect to pay use tax on receipts from the rental or lease of the tangible personal property instead of paying the sales or use tax on the full cost of the property at the time it is acquired.
If you elect to pay use tax on receipts from the rental or lease, you must
first obtain a Use Tax Registration before you acquire the property.
For additional information, contact the Michigan Department of Treasury at 517-636-6925.
Sales Tax for Concessionaires
If you will make retail sales at only one or two events in Michigan per
year, do not complete Form 518. Instead, complete a Concessionaire’s Sales Tax Return (Form 5089). This form can be found on Treasury’s Web site at www.michigan.gov/taxes or by calling 517-636-6925.
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Helpful Information for Starting a New Business
By reading and completing the Michigan Business Taxes Registration Booklet, you can register for any/all of the following business taxes and licenses:
•Sales Tax
•Use Tax
•Income Tax Withholding
•Corporate Income Tax
•Unemployment Insurance Tax.
State unemployment insurance taxes are paid to the Unemployment Insurance Agency (UIA). All other taxes are paid to the Michigan Department of Treasury.
If you need a Motor Fuel License, call 517-636-4600. If you need a IFTA license, call 517-636-4580. If you need a Tobacco Products License, call 517-636-4630. The following are some suggestions of
other places to contact for further help.
Determine Your Business’s Legal Structure
Contact an attorney, accountant or other business professional to
determine the appropriate structure for your business. You may wish to contact the Michigan Licensing and Regulatory Affairs (LARA), at 517-241-6470 for more information about starting a
business.
Register Your Business Name
Depending on the legal structure chosen, the business name may
be registered with the local county clerk’s office or the State of
Michigan. Sole proprietorships and partnerships should contact the county clerk’s office. Corporations, limited partnerships and limited liability companies (LLCs) should contact the Michigan Licensing and Regulatory Affairs (LARA) at 517-241-6470.
Obtain a Federal Employer Identification Number (FEIN)
This number is issued by the IRS and is required if you will have employees. It is also mandatory for your UIA registration. If you do not have an FEIN, contact the IRS at 1-800-829-3676 to request Form SS-4. You can also obtain Form SS-4 at the IRS website at www.irs.ustreas.gov/formspubs/index.html. When you have completed the form, you may call 1-800-829-4933 and provide the information from the form to the agent. The agent may assign your FEIN while you are on the telephone. To complete your FEIN registration, mail the form to the address shown on the form or fax it to 1-829-292-5760.
Obtain Special Licenses
Some occupations, professions and business activities require certification or licensing at the state or local level. An abbreviated
list of state licensing contacts is provided below.
Department of Agriculture
Food Service
1-800-292-3939
Michigan Licensing and Regulatory Affairs (LARA)
Health Services
517-335-0918
Commercial Services
517-241-6470
Insurance Bureau
517-373-0220 or 1-877-999-6442
Liquor Control Commission
......................... 517-322-1345
Plumbing
517-241-9330
Electrical
517-241-9320
Boiler
517-241-9334
Mechanical
517-241-9325
Elevator
517-241-9337
Health Facilities
517-241-4160
Long-Term Care Division
517-334-8408
You may also contact your local library, chamber of commerce or the nearest Small Business Development Center for information about state licenses. You can reach the Michigan Small Business Development Center Network at 1-877-873-4567. More information can also be found on the Network’s website at medc. michigan.org. Also check with your county and city clerks for
information about local licenses.
Forms and Information
New business forms can be found on Treasury’s website at www.michigan.gov/businesstaxes or call 517-636-6925 to have forms mailed to you. If you need assistance or more information, contact the appropriate party listed below.
Registration: Call 517-636-6925.
UIA: In Michigan, call toll-free 1-855-484-2636. Questions may also be faxed to 313-456-2130. For questions regarding a specific
account number, call 1-855-484-2636. More information can also be found on UIA’s website at www.michigan.gov/uia.
Unemployment Insurance Agency - Tax Office
Employers may now register for a UIAAccount Number using an online e-Registration application.
The process is easy, secure, convenient and much faster than registering by mail. After completing the on-line registration, you can receive your new UIAAccount Number in as little as three days.
www.michigan.gov/business
Whenever you contact UIA for tax assistance, please have your ten- digit UIA Account Number, or if you do not have a UIA Account
Number, then your Federal Employer Identification Number (FEIN)
available. Contact Tax Status regarding registering a new business, the sale/discontinuance of a business or seasonal designation. Tax Maintenance provides assistance with tax rates, overpayments, and
940 certifications. Contact Tax Collections about assessments, payment
plans, and tax liens. For general assistance, you may call 1-855-484- 2636 within Michigan or outside of Michigan.
Team
Email Address
Tax Status
EmployerLiability@michigan.gov
Tax Maintenance
TaxSupport@michigan.gov
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Registration for Michigan Taxes
It is important that you complete all items on the Registration form. Incomplete or inaccurate information will delay processing and in some cases may subject you to a penalty. Read all instructions carefully before you begin.
This form is provided under PA 122 of 1941 and the Michigan Employment Security Act. Filing is mandatory if you are required to pay business taxes in Michigan.
Complete this Registration Form if you:
•Start a new business or reinstate an old business.
•Purchase or acquire an existing business.
•Need to register for any of the Michigan taxes listed below.
•Change the type of ownership of your business (e.g., change from sole proprietorship to partnership, or incorporate a sole proprietorship or partnership). Submit to the Unemployment Insurance Agency documents for changes in ownership, management or control, or change in management through arm’s-length transactions.
Do not complete this Registration Form if you:
•Make sales at fewer than three events in Michigan during a calendar year. Instead, file a Concessionaire’s Sales Tax Return and Payment (Form 2271).
•Wish to apply for an ID number for your bank account. Use your Social Security number for this purpose.
Register for Sales Tax if you:
•Sell tangible personal property to the end user from a Michigan location (wholesalers do not need to register).
For more information regarding Sales Tax, go to www. michigan.gov/businesstaxes or call 517-636-6925.
Register for Use Tax if you:
•Lease tangible personal property in Michigan.
•Sell telecommunication services.
•Provide transient hotel or motel room rentals.
•Buy goods for your own use from out-of-state unlicensed
vendors.
•Launder or clean textiles under a sole rental or service agreement with a term of at least five days.
For more information regarding Use Tax, go to www.michigan. gov/businesstaxes or call 517-636-6925.
Register for Employer and Retirement Withholding Tax if you:
•Are an employer withholding federal income tax from employee compensation (see Federal Employer’s Tax Guide Circular E).
•Effective January 1, 2012, Michigan's tax treatment of pension and retirement benefits changed and these benefits will be
subject to income tax for many recipients. Michigan law now requires the administrators of pension and retirement benefits to withhold income tax on payments that will be subject to tax.
For more information regarding Withholding Tax, go to www. michigan.gov/businesstaxes or call 517-636-6925. Individual
owners and partners may not remit withholding on their wages through their business account numbers. They must file quarterly
income tax estimates. For information about quarterly estimates, call 517-636-4486.
Corporate Income Tax
Michigan's Corporate Income Tax (CIT) imposes a 6 percent
income tax on entities that are treated as C Corporations for federal
income tax purposes. Insurance companies and financial institutions
pay special taxes.
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Register for Corporate Income Tax if you:
•Have apportioned or allocated gross receipts greater than
$350,000 (with the exception of insurance companies and financial institutions).
For more information regarding business taxes, visit Treasury’s website at www.michigan.gov/taxes or call 517-636-6925.
Register for Motor Fuel Tax if you:
•Operate a terminal or refinery for gasoline, diesel or aviation fuel or import from a foreign country.
•Transport fuel across a Michigan border for hire.
•Are a position holder in a fuel terminal.
•Sell diesel fuel for use in watercraft.
•Sell LPG for highway use.
•Sell aviation fuel for resale.
For more information regarding Motor Fuel Tax, visit Treasury's
website at www.michigan.gov/taxes or call 517-636-4600.
Register for IFTA Tax if you:
•Operate a diesel-powered vehicle for transport across Michigan’s borders, having three or more axles, or having two axles and a gross vehicle weight over 26,000 pounds.
For more information regarding IFTATax, visitTreasury’s website at www.michigan.gov/IFTA or call 517-636-4580.
Register for Tobacco Products Tax if you:
•Sell cigarettes or other tobacco products for resale.
•Purchase any tobacco products from unlicensed out-of-state sources.
•Sell cigarettes or other tobacco products in a vending machine.
For more information regarding Tobacco Tax, go to at www. michigan.gov/tobaccotaxes or call 517-636-4630. If, after
reviewing your registration, Treasury determines that you need to file a Tobacco Tax License, you will be contacted with instructions
on how to apply for a license.
Register for State Unemployment Tax if you:
•Have employees performing services in Michigan.
•Plan to have employees working or performing services in
Michigan.
•Have acquired all/part of the payroll, accounts, services or assets of a business having employees in Michigan.
All employers must complete a Liability Questionnaire (UIA ScheduleA) and a Successorship Questionnaire (UIASchedule B).
For more information, visit Treasury’s website at www.michigan
.gov/taxes or UIA’s website at www.michigan.gov/uia.
For specific information regarding missing UIApayments, reports, penalties, and/or interest, in Michigan, call 1-855-484-2636. Be
sure to have your UIA Account Number, or if you do not have a
UIA Account Number, then your Federal Employer Identification Number (FEIN) available.
Mailing Instructions
Mail your completed registration and UIA schedules to: Michigan Department of Treasury
PO Box 30778 Lansing MI 48909
Mail your application at least six weeks, but not more than three
months, before you intend to start your business to allow your registration to be processed. Treasury will forward your application to UIA.
Instructions for Completing Form 518, Registration for Michigan Taxes
Treasury will mail your personalized Sales, Use and Withholding Tax returns. UIA will issue your unemployment account number.
Lines not listed are explained on the form.
Reason for This Application. Check the reason why you are
completing this application. If more than one reason applies, in most cases, check all that apply. The sole exception arises if you
are registering for withholding on an employee payroll, and for withholding on pension payments to retirees, and one of those
will be performed by a third party (e.g., a payroll service). In that case, file a separate Form 518 for the each of the two functions, so
as to identify clearly which party (taxpayer or payroll service) is handling each function.
Line 1, Federal Employer Identification Number (FEIN). The
Internal Revenue Service (IRS) issues the FEIN. If you need an
FEIN, contact the IRS at 1-800-829-3676 and ask for Form SS-4,
or visit the IRS website at www.irs.ustreas.gov/formspubs/index. html to download the form.
Line 2, Company Name. If your company is a partnership or corporation, include the appropriate indicator in this box: LLP, LLC, Corp, Inc, PC or LC. If your business is a sole proprietorship, enter
the owner’s name here and the business name on line 3.
Line 4, Legal Address. Enter the street address where your books and records are kept for audit purposes. You must also receive
mail there.
Line 5, Mailing Address. This may be a Post Office box or any
other address where you want business tax forms mailed.
Line 6, Physical Address. Enter the Michigan physical address if the actual location of your business is different from the legal
address, line 4.
Line 7, Business Ownership Type Code. Enter the business type code from the list below that precisely describes the business entity being registered.
Sole Proprietorship
10
Husband/Wife Proprietorship
20
Partnerships
Limited Partnership (LP)
33
General Partnership
30
Limited Liability Companies (LLC)
Select a code based on how the LLC files its federal income tax
Files federal tax as a sole proprietor (Form 1040)
35
Files federal tax as a partnership (Form 1065)
36
Files federal tax as a C Corporation(Form 1120)
37
Files federal tax as an S Corporation (Form 1120S)
38
Wholly owned by another entity (not by an individual)
and files federal tax as a disregarded entity on the
owner’s return
39
Corporation incorporated under Michigan law
Files federal tax as a C-Corporation (Form 1120)
40
Files federal tax as a S-Corporation (Form 1120S)
41
Corporation incorporated under law of any other state or country
50
51
Trust or Estate (Fiduciary)
60
Joint Stock Club
70
Social Club or Fraternal Organization
80
Any Other Type of Business
90
Line 8, Michigan Licensing and Regulatory Affairs (LARA)
Corporate ID Number. This item is only applicable if you have a
Michigan business entity.Anon-Michigan entity will not be issued a LARA Corporate ID number.
Line 9, Business Code. Locate the six-digit code that best describes your business on the list of North American Industrial Classification
System (NAICS) codes found at: http://www.census.gov/eos/www/ naics. Enter that code on Line 9. You must supply a NAICS code.
Line 10, Business Activity. Briefly describe the specific business activity or affairs the business will be transacting or conducting
in Michigan.
Line 11, Products You Sell. Briefly describe what products you will sell to the final consumer.
Lines 12 to 15, Taxes. Check the box for each tax type you expect
to pay. Indicate in the space next to each tax type the date your
liability for that tax begins. For Sales Tax, Use Tax and Employer and Retirement Withholding, check the box that indicates how much each month you expect to pay of that tax. Please note that a
C Corporation (or entity taxed federally as such) is required to pay the Michigan Corporate Income Tax if its apportioned or allocated gross receipts exceed $350,000 in a year.
Line 16, Unemployment Insurance Tax. If you will be paying
this tax, you should already have received an FEIN from the
IRS. Be sure to enter this number on Line 1 and complete the
attached Unemployment Insurance Agency (UIA) Schedule A and
Schedule B. If this is the only tax you will be paying, send these
forms and other requested documents to Unemployment Insurance
Agency, Tax Office at:
UIA
Or Fax to:
PO Box 8068
313-456-2130
Royal Oak MI 48068-8068
Line 17a, Motor Fuel Tax. Check this box if your business will
be selling motor fuel or if your business will include operation of a commercial vehicle transporting motor fuel.
Line 17b, IFTA Tax. Check this box if your commercial vehicle qualifies for IFTA and you will have interstate travel.
Line 18, Tobacco Tax. Check this box if you will be selling tobacco
products to other businesses or will be purchasing untaxed tobacco from an unlicensed source.
Line 19, Number of Locations. Enter the number of Michigan locations that will need a Sales Tax License.
Line 20, Fiscal Year. Enter the two-digit number that corresponds to the month in which you close your tax books. For instance, if your tax year is from July to June, enter “06” for June.
Line 21, Seasonal Business. Complete this only if your business is not open the entire year. Enter two two-digit numbers corresponding
to the months your business opens and closes, respectively. For example, if your business is open from October to May, enter “10” on the first line and “05” on the second line. NOTE: Seasonal businesses are required to file monthly returns for the months
that they are open.
Do not submit this form solely for the purpose of making sales
at only one or two events in Michigan per year. Instead, submit a Concessionaire’s Sales Tax Return (Form 5089). This form can be
4
found on Treasury’s website at www.michigan.gov/taxes, or you can call 517-636-6925 to have this form mailed to you.
Line 22, Payroll Service.This refers to you only if you contract with a company that prints payroll checks for your business (or processes EFT payments to your employees) and makes payments on your
company’s behalf for income tax withholding. If you contract with
such a company, you should access Michigan Treasury Online (MTO) at mto.treasury.michigan.gov to add this information or fill
out an Authorized Representative Declaration (Power of Attorney) (Form 151). This form can be found on Treasury’s website at www.
michigan.gov/taxes, or call 517-636-6925 to have this form mailed to you. Do not check this box if you or your company produce your own paychecks for your employees and you hire an accounting firm that manages your payroll. If you do have a payroll service, provide its name so that Registration staff can assist you with this.
Line 23. If your business succeeds or replaces an existing business or businesses because of incorporation, purchase or merger, provide the names and account numbers of those previous business(es).
Lines 28 to 31.You must supply at least one name. If there are more than four owners or partners (other than non-officer shareholders),
attach a separate sheet of paper.
NOTE:You must provide a signature certifying that the information
provided on the form is true, correct and complete to the best of your knowledge and belief.
Accepted Ownership Titles & Codes:
All Types of LLCs
Member
35, 36, 37, 38, 39
Sole Prop & Husband/Wife Partnerships
Owner
10, 20
All Types of Partnerships
Partner/General Partner
30, 36
Limited Partnerships
General Partner
All Types of Entities
President
Vice President
Secretary
Treasurer
Chief Accounting Officer
Chief Administrative Officer
Chief Executive Officer
Chief Financial Officer
Chief Operations Officer
Chief Restructuring Officer
Compensation and Benefits Mgr
Controller
Director
Employee Relations Mgr/Adv.
Executive Director
General Manager
Human Resources Manager
Of Counsel/Attorney
Operation Director
Resident Agent
Superintendent
Trust Executive
5
Michigan Department of Treasury
518 (Rev. 02-18)
Type or print in blue or black ink.
Check the reason for this application. If more than one applies, see instructions.
Started a New Business
Reinstating an Existing Account
Hired Employee/Hired Michigan Resident
Incorporated/Purchased an Existing Business
Acquired/Transferred All/Part of a Business
Added a New Location(s)
PEO: Client Level Reporting
Report Wages After Total Transfer/Sale of Business
Other (explain)_________________________
1. Federal Employer Identification Number, if known
2. Company Name or Owner’s Full Name (include, if applicable, Corp, Inc, PC, LC, LLC, LLP, etc.). Required.
-
3. Business Name, Assumed Name or DBA (as registered with the county)
4. Address for all legal contacts (street and number - no PO boxes)
Business Telephone
Legal
Address
City
State
ZIP Code
(Required)
5. Address, if different from Box 4, where all tax forms will be sent, unless otherwise instructed
If this address is for an accountant or
Taxpayer
other representative, attach Form 1488,
Power of Attorney for UIA.
Mailing
6. Address of the actual Michigan location of the business, if different from above (street and number--
no PO boxes). If NO Michigan address, check this box
Physical
7. Enter the Business Ownership Type code from Page 4 (Required)
7.
If your business is a limited partnership, you must name all general partners beginning on line 28.
If you are a Professional Employer Organization (PEO), give PEO License ID ______________________.
8. If you are a Michigan entity and line 7 is 35-39, 40, OR 41, enter your
Michigan Licensing and Regulatory Affairs (LARA) Corporate ID Number.... 8.
Check this box if you have applied for and not yet received your ID number.
Date of Incorporation _______________________ State of Incorporation_______________________
9. Enter Business Code (NAICS) that best describes your business
9.
NAICS codes can be found at http://www.census.gov/eos/www/naics/
10. Define your business activity
11. What products, if any, do you sell (sold to final consumer)?
Check the tax(es) below for which
Date that liability will begin
Estimated monthly payment for each tax
you are registering. At least one
for each box checked at left.
Required if box at left is checked.
box (12-15) must be checked.
Month
Day
Year
12.
Sales Tax
12a.
12b.
Annual
Quarterly
Monthly
Up to $62
$63 to $999
Over $1,000
13.
Use Tax
13a.
13b.
14.
Employer and Retirement
...Withholding (See line 22.)
14a.
14b.
15.
Annual Gross Receipts
Corporate Income Tax is required only if
over $350,000 (CIT)
15a.
annual gross receipts in Michigan exceed
$350,000 with the exception of insurance
companies and financial institutions.
Check the box if these other taxes also apply:
16.
Unemployment Insurance Tax. Attach UIA Schedule A and UIA Schedule B. Corporations, LLCs, LLPs: Enclose a copy of your Articles of Incorporation or Organization. You must complete all items on this form accurately and completely. Failure to do so may subject you to the penalties provided under the Michigan Employment Security (MES) Act.
17a.
17b.
18.
19.
Motor Fuel. Treasury will review your registration and contact you for any additional information.
IFTA Tax. Apply for a license first at www.michigan.gov/IFTA. You may contact IFTA at 517-636-4580. Tobacco Tax. Complete line 27. Treasury will review your registration and will contact you for more information.
Enter the number of business locations you will operate in Michigan (Required)
19.
If more than 1, attach a list and include each location’s name, address, city, state and ZIP code.
518, Page 2
20.
21.
22.
23.
Enter the month, numerically, that you close your tax books (for example, enter 08 for August)
20.
Seasonal Only: (Your business is not open continuously for the entire year) Seasonal filers are
required to file monthly returns for the months that you are open.
21a.
a. Enter the month, numerically, this seasonal business opens
b. Enter the month, numerically, this seasonal business closes
21b.
NOTE: If you are registering to sell at only one or two events in Michigan per year, do not submit this
registration form. Instead, file a Concessionaire’s Sales Tax Return (Form 5089). This form can be obtained
on Treasury’s Web site at www.michigan.gov/taxes, or by calling 1-517-636-6925.
Check this box if you use a payroll service that produces your payroll checks and sends income tax withholding payments to the State and Federal Governments. Access Michigan Treasury Online (MTO) at mto.treasury.michigan.gov or attach Authorized Representative Declaration (Power of Attorney) (Form 151). This form can be obtained on Treasury’s Web site at www.michigan.gov/taxes, or by calling 1-517-636-6925.
Enter the name of your payroll service provider:_____________________________________________________________
If you are incorporating an existing business, or if you purchased an existing business, list previous business names, addresses, and FEINs, if known.
24.
Previous Business Name and Address
FEIN
If you purchased an existing business, what assets did you acquire? Check all that apply.
Land
Building
Furniture and Fixtures
Equipment
Inventory
Accounts Payable
Goodwill
None
25. Motor Fuel Tax: (if you answer Yes to any of the questions below, see Web site www.michigan.gov/IFTA)
Yes
No
a. Will you operate a terminal or refinery?
25a.
b. Will you transport fuel across Michigan’s borders?
25b.
26.IFTA Tax: (if you answer Yes to any of the questions below, see Web site www.michigan.gov/IFTA) a. Do you own a diesel-powered vehicle used for transport across Michigan’s borders with three
or more axles or two axles and a gross vehicle weight over 26,000 lbs?
26a.
26b.
27.Tobacco Tax: (if you answer Yes to any of the questions below, see Web site michigan.gov/tobaccotaxes) Do you intend to:
a. Sell cigarettes or other tobacco products for resale to other businesses?
27a.
b. Purchase any tobacco products from an out of state unlicensed source?
27b.
c. Sell any tobacco products in a vending machine?
27c.
Complete all the information for each owner (sole proprietor or member), partner, or corporate officer. For limited partnership you must list all general partners. For limited liability companies you must list all members. For corporations you must list all officers, but do not include shareholders who are not officers. A signature is REQUIRED for each person listed in boxes 28-31. Attach a separate list if necessary.
I certify that the information provided on this form is true, correct and complete to the best of my knowledge and belief.
28. Name (Last, First, Middle, Jr/Sr/III)
Title
Date of Birth
Phone Number
Driver License / MI Identification No.
Social Security Number
Signature
29. Name (Last, First, Middle, Jr/Sr/III)
30. Name (Last, First, Middle, Jr/Sr/III)
31. Name (Last, First, Middle, Jr/Sr/III)
Questions regarding this form should be directed to Treasury at 517-636-6925. Submit this form six weeks before you intend to start your business. MAIL TO: Michigan Department of Treasury, PO Box 30778, Lansing, MI 48909.
UIA Schedule A - Liability Questionnaire
Issued underauthorityof the Michigan Employment SecurityAct of 1936, as amended, MCL 421.1 et seq. Filing is mandatory for all employers. You must complete all items on this form accurately and completely. Failure to do so may subject you to the penalties provided under the MES Act.
UIA Account Number, if already assigned
Federal Employer Identification No. (required)
An employing unit becomes liable to pay Michigan unemployment taxes when the employing unit meets any of the following criteria:
•Pays $1,000 or more in gross wages for covered employment in a calendar year.
•Employs one or more employees in 20 different weeks within a calendar year.
•Acquires all or part of an existing Michigan business.
•Pays at least $1,000 in cash, not including room and board, for domestic service within a calendar quarter.
•Pays at least $20,000 in cash, not including room and board, for agricultural service within a calendar quarter, OR Employs at least 10 agricultural workers in each of 20 different weeks in the current or preceding calendar year.
•Elects coverage under the terms of the Michigan Employment Security (MES) Act.
•Is subject to federal unemployment tax.
When any one of the above criteria is met, you must submit Form 518, Registration for Michigan Taxes, and UIA Schedule A - Liability Questionnaire and UIA Schedule B - Successorship Questionnaire. You must also begin quarterly filing of Form UIA 1028, Employer's Quarterly W age/ Tax Report. Unemployment taxes are due and payable beginning with the first calendar quarter in which you had payroll. Due dates for tax and wage reports are April 25, July 25, October 25 and January 25.
Providing inaccurate or incomplete information in this Registration, or UIA Schedules A or B,
will be evidence of
intentional misrepresentation and may subject you to the civil and/or criminal penalties provided
in Sections 54 and
54b of the Michigan Employment Security (MES) Act.
On what date did/will you first employ anyone in Michigan?
Complete the appropriate sections below according to the type of employer being registered.
SECTION 1
EMPLOYERS OTHER THAN AGRICULTURAL OR DOMESTIC/HOUSEHOLD
(See instructions to determine if applicable) If Agricultural, skip to Section 2.
If Domestic/Household,skip to Section 3.
If you have had a gross payroll of $1,000 or more within a calendar year, enter the date it was reached or will be reached.
If you have had 20 or more calendar weeks in which one or more persons
performed services for you within a calendar year, enter the date the 20th
week was reached or will be reached. The weeks do not have to be
consecutive nor the persons the same.
If Employer is a NonProfit, a Governmental Agency / Indian Tribe/ Tribal Unit, a Federal Unemployment Tax Act (FUTA) Subjectivity, or is selecting Elective Coverage, then complete only one of the following four employer types below that best describes the business.
1.NONPROFIT EMPLOYERS
Nonprofit organizations finance their unemployment liability by either (1) paying unemployment taxes on the taxable wages of their employees (contributing) or (2) making a specific prior election to reimburse the UIA for any unemployment benefits paid to their former employees (reimbursing). A nonprofit organization that does not elect to be reimbursing will be, by default, contributing.
To elect contributing status, check this box:
and skip paragraphs A – D below.
To elect reimbursing status, see paragraphs A – D.
A.Nonprofit employers electing reimbursing status must provide the UIA with a copy of the documentation from the Internal Revenue Service (IRS) granting 501(c)(3) status.
Check this box if you elect to be a reimbursing employer. Attach a copy of your IRS 501(c)(3) documentation. Failure to check this box will result in the establishment of your liability as a contributing employer.
B. If you are a nonprofit employer electing reimbursing status, enter $ the amount (or estimate) of your gross annual payroll
C. Bonding Requirements. Section 13a of the Michigan Employment Security (MES) Act requires that nonprofit
employers electing reimbursing status on or after December 21, 1989, and that have, or expect to have, a gross payroll of
more than $100,000 during any calendar year must notify the UIA
of
that fact immediately and must
provide a surety
bond, irrevocable letter of credit, or other banking device approved
by
the UIA, in an amount to be determined by the
UIA to secure the employer's obligations under the MES Act. If you
exceed $100,000 in gross payroll in
a later year, you
are obligated to notify the UIA, and provide the bond at that time.
D.If your organization is funded more than 50 percent by a grant, list the source and duration of the grant.
Source
Start Date
End Date
Michigan Unemployment Insurance Agency
2. GOVERNMENTAL AGENCIES, INDIAN TRIBES AND TRIBAL UNITS
Governmental entities generally reimburse unemployment insurance benefits paid to former employees on a dollar-for-dollar basis unless they elect to make quarterly "contribution" payments.
A.If you are a governmental agency, or Indian tribe or tribal unit, identify the type (i.e., city, township, commission, authority, tribe, etc.)
Month Day
B. Enter your fiscal year beginning date
C.
D .
Check this box if you elect to be a contributing employer. Leaving this box unchecked will result in the establishment of your liability as a reimbursing employer.
Indian tribes and tribal units are subject to the same bonding requirements as nonprofit employers (see Line 1C, above).and must provide the amount (or estimate of their gross annual payroll here:
3.FEDERAL UNEMPLOYMENT TAX ACT (FUTA) SUBJECTIVITY. Select this option ONLY if you are NOT liable for UIA taxes State under any of the other employer types.
If you are already subject to FUTA, enter the state, other than Michigan, where you became liable Note: "Subject to FUTA" refers to filing Form 940 with the IRS. If you are required to file Form 940 (FUTA) with the IRS in other states, you are required to file and pay state unemployment taxes in Michigan.
4.ELECTIVE COVERAGE. For employers who would not otherwise be liable for unemployment taxes, such as churches.
Check this box if you wish to elect coverage under the MES Act. Approval is subject to UIA review; some qualifiers apply. Your election, if granted, will apply to all your employees. Give your reason for electing coverage in the space provided below. If you are an individual owner or partnership electing to cover family members, specify their relationship to the owner or partners. You may not elect coverage for your parents or spouse, nor for your child under the age of 18. Individual owners and partners cannot elect coverage for themselves. You may not elect coverage for domestic employment below the statutory requirements stated above. Election of coverage remains in effect for a minimum of two calendar years.
SECTION 2
2.AGRICULTURAL EMPLOYERS ONLY
A.If you have had a total cash payroll of $20,000 or more for agricultural services performed within a calendar quarter in either the current or preceding calendar year, not including room and board, enter the date the $20,000 was reached or will be reached.
B.If you have had at least 10 agricultural workers in each of 20 different weeks in the current or preceding calendar year, enter the date the 20th
week was reached or will be reached.
The weeks do not have to be
SECTION 3
3. DOMESTIC/HOUSEHOLD EMPLOYERS ONLY
A. If you have had a cash payroll of $1,000 or more for domestic services
within a calendar quarter in either the current or preceding calendar year,
not including room and board, enter the date the $1,000 was reached or will
be reached.
SECTION 4
ALL EMPLOYERS
Print Name of Owner/Officer
Signature of Owner/Officer
Telephone Number
Date
Attach this schedule to Form 518, Registration for Michigan Taxes and mail it to the Michigan Department of Treasury.
Filling out the Form 518 for Michigan Business Taxes is a critical step for new or existing businesses that need to register or update their registration with the Michigan Department of Treasury. This step-by-step guide simplifies the process, ensuring that your business complies with Michigan's tax laws and regulations. Correctly completing this form sets the foundation for your business's tax responsibilities, including sales tax, use tax, income tax withholding, corporate income tax, and unemployment insurance tax, among others. Follow these instructions carefully to ensure accurate submission.
After completing the form, review all provided information for accuracy. Then, mail your completed registration and any required UIA schedules to the Michigan Department of Treasury at the provided address. Submitting your registration in a timely manner, ideally at least six weeks before commencing business operations, ensures that you'll receive necessary tax documentation and identification numbers from both the Department of Treasury and UIA as needed.
The 518 Form, also known as the Registration for Michigan Taxes, is designed for businesses to register for various state taxes in Michigan. This includes sales tax, use tax, income tax withholding, corporate income tax, and unemployment insurance tax. It's a mandatory filing if you're starting a new business, changing the ownership type, or need to register for any of the taxes mentioned above. Completing this form ensures your business complies with Michigan tax laws and regulations.
Any business that operates in Michigan and meets certain criteria needs to file Form 518. This includes businesses that are starting up, those buying or acquiring an existing business, businesses that need to register for specific Michigan taxes, and companies that are changing their type of ownership. It's not required for businesses making sales at fewer than three events in Michigan during a calendar year; instead, these entities should file a Concessionaire’s Sales Tax Return (Form 2271).
Form 518 can be found and downloaded from the Michigan Department of Treasury's website at www.michigan.gov/taxes. Once completed, the form should be mailed to the Michigan Department of Treasury at PO Box 30778, Lansing, MI 48909. Alternatively, businesses solely registering for the State Unemployment Tax should send their forms directly to the Unemployment Insurance Agency, Tax Office at UIA PO Box 8068, Royal Oak MI 48068-8068, or faxed to 313-456-2130. Ensure to mail your application at least six weeks beforehand to allow for processing.
Filing Form 518 requires detailed information about your business, including the Federal Employer Identification Number (FEIN), company name, addresses (legal, mailing, and physical), and specifics about the business structure and activity. You’ll also need to identify which taxes your business will be registering for and provide a brief description of your business activities. For specific taxes like Unemployment Insurance Tax, Motor Fuel Tax, or Tobacco Tax, additional schedules or forms might be required. Accurate and complete information will facilitate the timely processing of your registration.
Filling out official forms often feels like navigating a maze, especially when dealing with the intricate details required by tax forms. The Michigan Department of Treasury's 518 form is no exception, serving as a conduit for businesses to register with Michigan Business Taxes. While it aims to streamline the process, there are common missteps that can complicate matters. Let's pinpoint these errors to ensure a smoother journey through your tax obligations.
Each mistake, from omitting crucial numbers to blurring the lines of your business's outline, can delay or derail the registration process. Whether it's mixing up identification numbers, glossing over the nuanced details of your business's structure, or misconstruing tax obligations—each requires careful attention. The key to a successful filing lies not just in avoiding these pitfalls, but in recognizing the form as your business's introduction to the state's tax infrastructure—a foundational step that warrants accuracy.
Arming yourself with the correct information and a keen eye for details will not only simplify the registration process but also establish a solid starting point for your business's financial journey in Michigan. As mundane as it may seem, correctly filling out the Michigan 518 form is a critical task that, when done properly, aligns your business with state laws and regulations, ensuring a smoother path forward.
When initiating or conducting business in Michigan, understanding and completing the array of necessary documents and forms alongside Form 518 is crucial. Form 518, otherwise known as the Michigan Business Taxes Registration Booklet, is the cornerstone for businesses to register for various state taxes and obtain essential licenses. However, to ensure comprehensive compliance and safeguard your business's operational integrity, several additional documents often play a critical role in the seamless establishment and ongoing governance of your business endeavors in Michigan. Below is a detailed list of these pivotal documents and forms, each serving a unique aspect of business taxation and regulation.
These documents collectively ensure businesses meet their obligations across various regulatory and tax domains. Whether it's transitioning ownership, meeting state and federal tax requirements, or accurately reporting sales and employment taxes, each form serves as a critical tool in maintaining lawful operations. It is advisable for business owners and their representatives to familiarize themselves with these requirements and seek guidance as needed to ensure compliance and support the healthy maintenance and growth of their businesses within Michigan’s regulatory framework.
The 518 Michigan form, which is essential for business tax registration in Michigan, bears similarities to several federal and state forms used for business and tax registrations. Understanding how these documents relate can simplify the administrative processes for businesses and ensure compliance with tax obligations.
Internal Revenue Service Form SS-4, used to apply for an Employer Identification Number (EIN), is closely related to the 518 Michigan form in its purpose of business identification for tax purposes. Like the 518 Michigan form, Form SS-4 is a crucial step for newly established businesses, enabling them to hire employees, open business bank accounts, and fulfill federal tax responsibilities. Both forms serve as foundational documents that legitimize a business in the eyes of tax authorities and facilitate various business transactions.
Form UIA 1028, Employer's Quarterly Wage/Tax Report, shares similarities with the 518 Michigan form as both are integral to managing unemployment insurance taxes. While the 518 Michigan form initiates registration with the Michigan Department of Treasury for various state business taxes, Form UIA 1028 is specifically tailored for reporting wages paid and unemployment taxes owed on a quarterly basis. Each serves to maintain compliance with state tax laws, with the 518 form marking the beginning of tax responsibilities and UIA 1028 ensuring ongoing adherence to unemployment insurance contributions.
Form 5089, Concessionaire's Sales Tax Return and Payment, though used under more specific circumstances, reflects the role of the 518 Michigan form in facilitating state tax compliance. Form 5089 is designed for businesses making sales at one or two events in Michigan annually, exempting them from the broader registration requirements of Form 518. Both documents underscore the state's effort to accommodate a variety of business models and operational frequencies, ensuring each contributes appropriately to Michigan’s tax system.
When approaching the completion of the 518 Michigan Form for business tax registration, there are several practices that can streamline the process and avoid common pitfalls. Adhering to these guidelines can ensure accurate submission, helping to establish or maintain the legal and financial framework of your business operations within Michigan. Here are vital dos and don'ts:
By adhering to these recommendations, you can mitigate errors, omissions, or misunderstandings that could impact your business’s compliance and tax responsibilities in Michigan. Taking the time to thoroughly and accurately complete the 518 Michigan Form is an investment in the health and legal standing of your business.
There are several misconceptions surrounding the 518 Michigan form, specifically regarding its purpose, who needs to file it, and how it interacts with other tax obligations. Understanding these misconceptions is crucial for effective tax compliance and business operation within the state.
This is incorrect. While it's true that Form 518 is essential for employers to register for state unemployment insurance taxes, the form also encompasses registration for other Michigan business taxes, including sales tax, use tax, income tax withholding, and corporate income tax. Thus, a wide range of businesses, not just those with employees, may need to complete and file Form 518.
Form 518 allows businesses to register for multiple Michigan taxes, but registration for some taxes may require additional steps or separate forms. It's important for businesses to review the specific requirements for each tax type for which they are registering, as outlined in the instructions for Form 518 and on the Michigan Department of Treasury website.
Even temporary businesses may have obligations under Michigan tax laws. For example, those making retail sales at one or two events in Michigan per year should not use Form 518 but are instead directed to complete a Concessionaire’s Sales Tax Return (Form 5089). This requirement underscores the importance of understanding specific tax obligations based on business activities in Michigan.
While new businesses must file Form 518 to register for applicable Michigan taxes, existing businesses may also need to file the form due to certain changes, such as acquiring another business, changing business structure, or registering for additional taxes as business operations expand.
Businesses have an ongoing responsibility to keep their registration information current. This includes notifying the Michigan Department of Treasury of any changes in ownership, business structure, tax liability, or cessation of business activities. Failure to update this information can result in inaccurate tax obligations and potential penalties.
Form 518 is specific to Michigan state taxes. While it does include registration for state unemployment insurance taxes, employers are also responsible for federal tax obligations, including federal unemployment tax (FUTA), which requires separate registration with the IRS. Employers must ensure compliance with both state and federal tax requirements.
Understanding these misconceptions about Form 518 helps clarify the tax registration requirements for businesses operating in Michigan, ensuring proper compliance and avoiding potential challenges with state tax obligations.
When dealing with the 518 Michigan form, here are eight key takeaways everyone should keep in mind:
Michigan 4568 - Ensuring clarity and compliance for Michigan businesses with a detailed look into form 4568’s requirements.
How Do I Get a Copy of the Deed to My House in Michigan - The form's requirement to declare the type of property transfer aids in the transparency of real estate transactions.