Accounting / CPA Permits & Licenses in Warren, MI

Required for all LLC formation in Michigan. Annual statement also required ($25 fee, due Feb 15).

All active Michigan LLCs must file regardless of business type.

Prerequisites: 120 semester hours education, pass Uniform CPA Exam, 2,000 hours experience. LLC itself not licensed, but owners/employees providing CPA services must be.

At least 1 owner must hold Michigan CPA license. Required for firms using "CPA" designation.

While not statutorily mandated by Michigan law, the Michigan Board of Public Accountancy enforces compliance with AICPA and state rules requiring E&O insurance for CPA firms engaged in attest services. Firms must carry minimum coverage (typically $100,000 per occurrence, $300,000 aggregate) if performing audits or reviews. Sole practitioners not offering such services may be exempt.

Not legally required by Michigan for accounting businesses. However, often required by commercial landlords, clients, or contracts. Strongly recommended to protect against third-party bodily injury or property damage claims.

A $25,000 surety bond is required for all CPA firms (including LLCs) registered with the Michigan Board of Public Accountancy. This is a license bond to ensure compliance with state laws. Exemptions apply only if the firm is owned and operated solely by licensed CPAs and meets specific criteria under MCL 339.101 et seq.

Required under Michigan's No-Fault Insurance Law (MCL 500.3102) for any business-owned vehicle. Minimum liability coverage: $250,000 per person for bodily injury, $500,000 per accident, and $100,000 for property damage. Applies regardless of business type.

Not required for accounting/CPA firms unless selling physical products (e.g., books, software). Not applicable to standard accounting services. Recommended only if tangible goods are sold.

Only required if the business holds a liquor license (e.g., hosts client events with alcohol). Not applicable to typical CPA firms. Enforced by MLCC under Michigan Liquor Control Code (MCL 436.1101).

All LLCs, including single-member LLCs, are required to obtain an EIN if they have employees or file employment, excise, or alcohol/tobacco/firearms tax returns. Even owner-only LLCs often obtain an EIN to avoid using a Social Security Number for business purposes. This is mandatory for multi-member LLCs or those treated as corporations for tax purposes.

A multi-member LLC is treated as a partnership by default and must file Form 1065, U.S. Return of Partnership Income. This applies to accounting firms structured as multi-member LLCs. The return reports income, deductions, gains, losses, etc., but does not pay tax at the entity level.

If the accounting LLC elects corporate tax treatment, it must file Form 1120. This is uncommon for CPA firms but possible. Corporate-level taxation applies, and dividends are subject to double taxation.

Some CPA-owned LLCs elect S-corp status to reduce self-employment tax. The business files Form 1120-S, which is an informational return. Income passes through to owners’ personal tax returns.

Owners of a single-member LLC or partners in a multi-member LLC are generally subject to self-employment tax on their distributive share of profits. They must make estimated quarterly tax payments using Form 1040-ES.

All employers with employees must comply with OSHA’s General Duty Clause and provide a workplace free from recognized hazards. For office-based accounting firms, requirements are minimal (e.g., emergency exits, accessible electrical panels, proper ergonomics). No specific OSHA standards apply uniquely to CPA firms.

Certificate of Assumed Name (SC-13 form). Valid 5 years, renewable.

Most service businesses like accounting do not collect sales tax but need withholding if employees. Register via Michigan Treasury Online (MTO).

Accounting/CPA services are generally not subject to Michigan sales tax. However, if the LLC sells tangible personal property (e.g., tax preparation software, printed materials), registration may be required. Most CPA firms do not collect sales tax on professional services.

Required for all employers in Michigan. Includes withholding of state income tax from employee wages. Registration is done via the Michigan Treasury Online (MTO) system.

Employers must register with the UIA and pay quarterly unemployment insurance taxes. New employers pay a standard rate until experience rating applies. As of 2024, new employer tax rate is 2.7% on first $9,500 of wages per employee.

LLCs taxed as corporations must file Michigan Corporate Income Tax (CIT). Most LLCs in accounting/CPA field are pass-through entities (disregarded or S-corps), so income flows to owners' personal returns. If the LLC elects corporate taxation, CIT applies at 6% on Michigan taxable income. Filing required annually using Form 4880.

Local privilege taxes vary by municipality. Detroit imposes a 1.5% tax on gross receipts for businesses. Other cities may have similar taxes. This is not statewide; must check local jurisdiction. Example provided for Detroit as largest city.

While not a tax, this is a mandatory regulatory requirement for CPA firms. The business entity (LLC) must register as a CPA firm with LARA. Individual CPAs must hold active licenses. Required under Public Act 128 of 1986.

Required for most businesses including professional services like CPA; LLCs register under business name

Office use typically permitted in B3/B4 zoning districts; verify via Zoning Verification Letter first

Limited to 25% of home floor area; no client visits exceeding 1/day; no employees

Wall signs max 20% of facade; complies with Chapter 6 Zoning Ordinance

Business occupancy (B) classification for CPA office; extinguishers, exits verified

Required for unincorporated areas; many cities have own ordinances

Professional offices exempt from annual renewal but must register; zoning compliance separate

Office use conditional in AG/Rural districts; site plan review required

CPA firms with a physical location must ensure accessibility for people with disabilities (e.g., ramps, door widths, accessible restrooms). Firms operating remotely or by appointment only may have reduced obligations, but digital accessibility (e.g., website compliance) is increasingly enforced under ADA Title III.

All U.S. employers must verify identity and employment authorization for every employee using Form I-9. Remote completion is allowed through 2025 under temporary DHS policy due to the pandemic. Applies regardless of industry.

FLSA requires payment of federal minimum wage ($7.25/hour) and overtime (1.5x regular rate for hours over 40/week). CPA firms must classify employees correctly (exempt vs. non-exempt). Most professional accountants may qualify as exempt under the "learned profession" exemption if paid on a salary basis of at least $684/week.

FMLA requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Most small CPA firms do not meet the 50-employee threshold, but larger firms must comply.

CPA firms must ensure all advertising (websites, social media, testimonials) is truthful and not misleading. If using client testimonials or endorsements, material connections (e.g., compensation) must be disclosed. Applies to all businesses, but particularly relevant for service-based professionals claiming expertise or results.

Employers in Michigan must display current labor law posters, including Minimum Wage, OSHA Workplace Safety, EEO, Workers’ Compensation, and Family Medical Leave Act (FMLA) if applicable. Posters can be downloaded from the Michigan LEO website. Federal OSHA poster also required for workplaces with employees.

All employers with employees in the U.S. must display the OSHA Job Safety and Health: It's the Law poster (OSHA 2204). Available for free download from OSHA website. Required even for office-based accounting firms with employees.

Businesses must issue Form 1099-NEC to contractors by January 31. If filing more than 10 forms, electronic filing is mandatory. Form 1099-MISC is used for other payments (e.g., rent, royalties).

Employers must file quarterly wage reports (Form UIA 1075) and pay unemployment insurance tax. New employers are assigned a standard tax rate until experience-rated. Registration is required within 20 days of hiring first employee.

Employers must file Form 941 each quarter to report federal income tax, Social Security, and Medicare taxes withheld from employees. Due one month after end of each quarter (Q1: March 31 → April 30, etc.).

Form 940 is filed annually to report FUTA tax. Most employers receive a 5.4% credit for paying state unemployment taxes, reducing the effective FUTA rate to 0.6%.

No exterior evidence of business; <25% home use; professional services allowed

Required for all employers with one or more employees in Michigan. Sole proprietors and LLC members without employees are exempt from mandatory coverage but may elect to be covered. Accountants/CPAs are classified under "Professional Services" (Class Code 8742) for premium calculation.

The FTC’s Safeguards Rule under the Gramm-Leach-Bliley Act (GLBA) applies to “financial institutions,” which includes CPA firms that handle clients’ nonpublic personal information (e.g., tax returns, financial statements). Requires implementation of a written information security program, risk assessment, employee training, and encryption. Effective date: June 9, 2023 (with full compliance required by June 9, 2023, for most provisions; some delayed to 2024).

While not specific to CPA firms, owners of accounting LLCs must comply personally. The requirement applies to U.S. persons, including LLC owners, with foreign accounts. CPA firms may also assist clients with compliance but must ensure their own compliance.

Most CPA firms are not required to register as MSBs or implement AML programs unless they offer services beyond accounting (e.g., payroll with cash disbursement, check cashing). Standard accounting and tax preparation do not trigger AML obligations under FinCEN rules.

While CPA licensure is administered at the state level (Michigan LARA), federal law (e.g., SEC regulations, AICPA standards) recognizes only state-licensed CPAs for certain engagements. A federal requirement exists in that only licensed CPAs may sign audit reports for publicly traded companies under SEC rules. The LLC itself does not need a federal CPA license, but individual practitioners must be licensed.

Circular 230 governs tax practitioners who represent clients before the IRS. It requires adherence to ethical standards in tax advice and return preparation. All CPA firms representing clients must comply. Non-compliance can result in suspension or disbarment from IRS practice.

All CPAs and CPA firms must adhere to the AICPA Code of Professional Conduct, which includes independence, integrity, and due care. While not a federal law, it is enforced by state boards and required for maintaining CPA status and federal recognition in audit engagements.

Under AICPA rules, firms offering attestation services must undergo peer review every three years. This is a condition for maintaining AICPA membership and is required by most state boards, including Michigan. Federal recognition of CPA authority in audit reporting depends on compliance.

All domestic and foreign LLCs registered in Michigan must file an Annual Statement of Information by February 15 each year. This updates the principal office address, registered agent, and management structure. Filing is done online via the LARA website.

CPA licenses in Michigan are renewed every two years on November 30 of odd-numbered years (e.g., 2023, 2025). Renewal includes attestation to completion of required continuing education. See 376.1101 of Michigan Compiled Rules.

Michigan CPAs must complete 80 hours of continuing education (CE) every two years, including at least 4 hours in ethics. At least 20 hours must be in technical subject matter (e.g., accounting, auditing, taxation). Self-study is allowed up to 40 hours per cycle. CE must be from NASBA-approved providers.

An EIN is a one-time assignment, but its use is ongoing. Required for filing federal employment taxes, business income tax returns, and issuing 1099s. Even single-member LLCs may need an EIN for banking or tax purposes.

Employers must file Form 5020 (Withholding Tax Return) monthly or quarterly. The frequency is determined by the amount withheld. An annual reconciliation (Form 5020-AN) is due by January 31. Registration is done via the Michigan Treasury Online (MTO) system.

CPA firms structured as pass-through entities (e.g., multi-member LLCs) may require owners to make quarterly estimated tax payments using Form 1040-ES. Single-member LLCs report income on Schedule C of personal return.

Accounting and CPA services are generally exempt from Michigan sales tax. However, if the business sells taxable items (e.g., tax preparation software), registration and filing are required. Filing frequency depends on sales volume.

IRS recommends keeping business tax records for at least 3 years. Employment tax records must be kept for at least 4 years. Records related to property should be kept for as long as the property is owned plus 3 years after disposal. Michigan does not impose additional record retention beyond federal standards for general businesses.

Michigan law requires licensed CPAs to display their current license in a conspicuous location at their principal place of business. This applies to all licensed professionals practicing in the state.