Form 518 Michigan PDF Details

Navigating the complexities of tax and regulatory compliance is a fundamental responsibility for businesses operating within the State of Michigan. Recognizing this, the Michigan Department of Treasury provides a comprehensive registration booklet, denoted as the 518 form, serving as a guide for businesses to register for various state taxes and licenses. The booklet underscores the imperative for employers to register with both the Internal Revenue Service (IRS) and the Michigan Department of Treasury to fulfill obligations concerning social security tax and income tax withholding. Furthermore, it elaborates on the necessity of adhering to federal, state, and local tax requirements, including city income tax where applicable. Employers are also informed about their duties regarding the reporting of newly hired employees, federal unemployment tax (FUTA), state unemployment insurance tax, workers' disability compensation, health and safety standards under OSHA, immigration law compliance, and the particulars of maintaining proper records for tax liability determination. Addressing new businesses, the booklet provides guidance on completing tax returns accurately and on time, transferring business ownership, and ensuring compliance with health, safety, and environmental regulations. Additionally, it touches on specialized tax registration processes such as use tax on rental or leased property, sales tax for concessionaires, and the obligations tied to acquiring existing businesses, thereby offering a clear path for businesses to meet their tax and regulatory obligations.

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Form NameForm 518 Michigan
Form Length13 pages
Fillable?No
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Avg. time to fill out3 min 15 sec
Other namesmichigan 518 online, michigan form 518 fillable, michigan state form 518, michigan form 518 online

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Michigan Department of Treasury 518 (Rev. 02-18)

STATE OF MICHIGAN

MICHIGAN BUSINESS TAXES

Registration Booklet

For more information regarding Michigan Treasury

Taxes, go online 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 ofice for information.

Employers must report all newly hired employees. See the Michigan Income Tax Withholding Guide, visit the New Hire Reporting Web site 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 Ofice at PO Box 8068, Royal Oak MI 48068-8068; in Michigan, call 1-855-484-2636; out of state call 313-456-2300 for account-speciic information. More information can be found on

the Agency’s Web site 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 Ofice of

U.S. Immigration and Custom Enforcement at 313-568-6042 for forms and more information.

New Businesses

Employers are required to ile 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 Web site at www. michigan.gov/uia or by calling 1-855-484-2636 or 313-456-2300. 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 Web site 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 Identiication 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 Web site at www.michigan.gov/taxes.

Corporate oficers may be held liable for Treasury tax debts incurred by their corporations.

Delinquent collections. Treasury and UIA may both ile 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 suficient purchase money

to cover these tax debts until the previous owner produces a

receipt showing the taxes have been paid or a certiicate stating that no taxes are due. This certiicate may be obtained through

the Department of Treasury, Tax Clearance Section. Upon the

owner’s written waiver of conidentiality; 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 Web site 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

irst 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.

1

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 ofice or the State of

Michigan. Sole proprietorships and partnerships should contact the county clerk’s ofice. 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 Identiication 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 Web site 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 certiication 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 Web site 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 Web site 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 speciic

account number, call 313-456-2300. More information can also be found on UIA’s Web site at www.michigan.gov/uia.

Unemployment Insurance Agency - Tax Ofice

Employers may now register for a UIA Account Number us- ing an on-line e-Registration application located within the

Michigan Business One Stop.

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

Unemployment Insurance Agency - Tax Ofice

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 Identiication 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 certiications. Contact Tax Collections about assessments, payment

plans, and tax liens. For general assistance, you may call 1-855-484- 2636 within Michigan or 313-456-2300 outside of Michigan.

Team

Telephone Number

E-mail Address

Tax Status

313-456-2080

EmployerLiability@michigan.gov

Tax Maintenance

313-456-2010

TaxSupport@michigan.gov

Tax Collections

313-456-2090

Tax Collections@michigan.gov

2

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, ile 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 ive 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 beneits changed and these beneits will be

subject to income tax for many recipients. Michigan law now requires the administrators of pension and retirement beneits 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 ile 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 inancial institutions

pay special taxes.

3

Register for Corporate Income Tax if you:

Have apportioned or allocated gross receipts greater than

$350,000 (with the exception of insurance companies and inancial institutions).

For more information regarding business taxes, visit Treasury’s Web site at www.michigan.gov/taxes or call 517-636-6925.

Register for Motor Fuel Tax if you:

Operate a terminal or reinery 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 IFTA Tax, visit Treasury’s Web site 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 ile 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 Web site at www.michigan

.gov/taxes or UIA’s Web site at www.michigan.gov/uia.

For speciic information regarding missing UIA payments, 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 Identiication 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, ile 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 Identiication 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 Web site 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 Ofice 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 iles 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 iles 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

Files federal tax as a C-Corporation (Form 1120)

50

Files federal tax as a S-Corporation (Form 1120S)

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 Classiication

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. Briely describe the speciic business

activity or affairs the business will be transacting or conducting in Michigan.

Line 11, Products You Sell. Briely describe what products you will sell to the inal 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 Ofice 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 qualiies 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 irst line and “05” on the second line. NOTE: Seasonal businesses are required to ile 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

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The way to complete state of michigan form 518 step 1

2. After this part is completed, go to enter the relevant details in these - Date of Incorporation State of, Enter Business Code NAICS that, NAICS codes can be found at, Define your business activity, What products if any do you sell, Check the taxes below for which, Date that liability will begin for, Estimated monthly payment for each, Required if box at left is checked, box must be checked, Month, Day, Year, Sales Tax a, and Use Tax a Employer and Retirement.

Completing section 2 of state of michigan form 518

3. The following portion focuses on Unemployment Insurance Tax Attach, a Motor Fuel Treasury will review, IFTA Tax Apply for a license first, b Enter the number of, and If more than attach a list and - complete these blank fields.

state of michigan form 518 completion process shown (part 3)

4. To go onward, the following part will require filling in a handful of fields. Examples include Page Enter the month, required to file monthly returns, b Enter the month numerically this, Check this box if you use a, Enter the name of your payroll, If you are incorporating an, and FEINs if known Previous, Previous Business Name and Address, FEIN, FEIN, If you purchased an existing, Land, Building, Furniture and Fixtures, and Equipment, which you'll find crucial to carrying on with this particular document.

Tips to complete state of michigan form 518 step 4

Always be extremely attentive while filling in Equipment and FEIN, because this is the part in which many people make a few mistakes.

5. The last section to submit this PDF form is pivotal. Make sure to fill in the displayed blank fields, for instance Motor Fuel Tax if you answer Yes, IFTA Tax if you answer Yes to any, a Will you operate a terminal or, a Do you own a dieselpowered, Yes, or more axles or two axles and a, Do you intend to a Sell cigarettes, Tobacco Tax if you answer Yes to, Phone Number, Date of Birth, Title, Driver License MI Identification, Social Security Number, Signature, and Name Last First Middle JrSrIII, before finalizing. If you don't, it might contribute to a flawed and probably invalid form!

state of michigan form 518 conclusion process detailed (portion 5)

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