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Michigans single business tax (SBT) is a value-added tax (VAT), and the only major tax of its kind in the United States.
The Michigan Business Tax (MBT), which was signed into law by Governor Jennifer M. Granholm July 12, 2007, imposes a 4.95% business income tax and a modified gross receipts tax at the rate of 0.8%. Insurance companies and financial institutions pay alternate taxes (see below).
Individuals or businesses that sell tangible personal property to the final consumer are required to remit a 6% sales tax on the total price of their taxable retail sales to the State of Michigan. Sales of electricity, natural or artificial gas and home heating fuels for residential use are taxed at a 4% rate.
Filing Thresholds Taxpayers with less than $350,000 in allocated or apportioned gross receipts are not required to file a return or pay the tax.
Michigans Corporate Income Tax (CIT) is at a flat rate of 6%. The tax applies to C Corporations and any entity that elects to be taxed as a C corporation. Income is apportioned based 100% on the sales factor.
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People also ask

In Michigan, filing as a C-corp will mean that your LLC must pay federal corporate income tax at 21% and state corporate income tax at 6%. Filing as a C-corp is more complicated than filing under default status, so seek advice from an accountant to decide if C-corp status is right for your LLC.
Michigan business tax breakdown Business typeState income taxesUnemployment insurance taxes LLC with C corp election Yes, 6% corporate income tax rate Yes, if you hire employees LLC No Yes, if you hire employees Partnership No Yes, if you hire employees Sole proprietorship No Yes, if you hire employees2 more rows Nov 11, 2023

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