Why incorporate in Michigan?
Business Information & Rankings
- Michigan ranked 8th on the Top States Business Climate Rankings. (Site Selection, 2005)
- Michigan ranked 2nd for New Capital Spending for 2005. (Ernst & Young’s U.S. Investment Monitor)
- Michigan ranked 5th as a Small Business-Friendly State. (Small Business & Entrepreneurship Council’s Small Business Survival Index, 2005)
- Michigan ranks as the leading U.S. automobile manufacturer.
Cost of Living Index
|For Grand Rapids, MI (2005):||Index Score|
|Misc. Goods & Services:||103.7|
Michigan has the 20th lowest overall crime ranking in the U.S. However, it ranks 3rd in hate crimes. (FBI, 2004)
Fees & Taxes
Business Inventory Tax
Business inventory is exempt.
Corporate Income Tax
Michigan charges a Single Business Tax (SBT), which is a modified value-added tax (VAT). The base of the SBT is the difference between a company’s sales and the cost of materials. The SBT consists of two brackets. All taxable receipts under $45,000 are not taxed. All receipts over $45,000 are taxed at a 1.9% rate.
Personal Income Tax
Michigan charges a 3.95% flat rate tax (7/2004).
Personal Property Tax
Taxable. Michigan is one of the 38 states that collect property taxes at both the state and local levels. Michigan no longer has an intangible property tax.
State Sales and Use Tax
Base Rate: 6.0%
Machinery Rate: None
There is an exemption for sales to an industrial processor for use or consumption in industrial processing; computers and computer equipment used in operating industrial processing equipment.
Michigan’s new employers’ rate is 2.7% for 2 years.