Starting a Business in Michigan: 6 Things to Consider
Michigan has the 9th lowest sales tax and 5th lowest cost of living in the United States, earning its reputation as a business-friendly state. If you’re an entrepreneur and looking for a place to house your business operation, here are six things to consider before setting up a business in Michigan.
Create a Business Plan
Once you have established a purpose for your startup, you must have a business plan in place that outlines your goals and aspirations. Whether your talents lie in retail, hospitality, or construction to name a few, your business plan needs to state the name of your company, what products or services you plan to offer, how your operation differentiates from competitors, as well as how you will market and promote your brand. Check out this guide on how to get started in Michigan and determine whether you want to form an LLC or a corporation.
Register for Taxes
After creating a business plan, you must obtain an EIN (Employer Identification Number) which is used to classify a company in its federal tax filings. If you don’t have an EIN, you cannot hire staff or open a business bank account. There are Michigan taxes that you must be aware of too. For example, if you’re selling physical products, you will need to sign up for Michigan Sales Tax. And if you plan to hire others in your business, you must ensure you’re registered for Unemployment Insurance Tax.
Having business insurance in place will help you handle risks and concentrate on growing your brand. The common kinds of business insurance you should take out include general liability insurance, professional liability insurance, and workers’ compensation insurance. Whether you’re a small startup or a large organization, you must take out business insurance to protect your brand, yourself, and your employees. If any injuries occur in the workplace, insurance will keep you covered.
Set Up Accounting
Regarding the financial aspect of running a business in Michigan, you need to be on top of your game. To do this, you can use an accounting system that lets you monitor the performance of your company. If you aren’t sure where to begin, you can hire an accountant in your business who will oversee every bank and credit card transaction, as well as do your annual tax filings. If you’re on a tight budget and can’t afford to bring an accountant into your company, you must get to grips with your finances to keep on track and avoid getting into debt.
Find a Premises
To legally operate your new startup, you must adhere to federal, local, and state government regulations. This means that you’ll need to acquire a business permit or license to run your brand. For instance, if you plan to run a restaurant, building permits and health permits will be required. To see success and build a reputable brand, it’s best to house your premises in a well-populated area so you can get the foot traffic you envisage.
Establish Your Brand
No matter what kind of business you plan to run in Michigan, unless consumers are aware of your company, you can’t expect overnight success. If you plan to run a retail store or open a restaurant, spreading brand awareness before launching is critical for success. Creating a professional website and blog, marketing your business on social media, and using email marketing to stay in touch with your audience can help grow your company.
Whether you set up a business in a city like Detroit and Grand Rapids, or you operate further afield, Michigan is home to thousands of entrepreneurs like yourself. Before getting started, make sure you take the factors above into account to help you create and run a successful brand.