Complete guide to permits and licenses required to start a general contractor in Sterling Heights, MI. Fees, renewal cycles, and agency contacts.
All workers performing such work must be EPA‑certified; firms must maintain a certified renovator on staff.
Michigan implements the EPA program through the Michigan Department of Environment, Great Lakes, and Energy (EGLE); the federal requirement is delegated.
Required for all LLC formation in Michigan. Online filing via LARA Corporations Online Filing System recommended.
All Michigan LLCs must file regardless of industry.
Required statewide if using DBA; valid indefinitely unless withdrawn.
Required for most general contracting involving residential building/construction. Effective requirements as of latest LARA update.
Applies to general contractors doing commercial repairs/alterations. Prerequisites include proof of experience or exam.
General contractors often need this for tax-exempt purchases of materials incorporated into real property.
Only if general contractor performs listed specialty work; otherwise subcontract required.
General contractors in Michigan may be required to collect and remit sales tax on materials and equipment used in construction projects. Registration is mandatory if the business has nexus in Michigan. Filing frequency depends on assigned schedule (monthly, quarterly, or annually) based on volume.
Employers must withhold Michigan state income tax from employee wages. Filing frequency (monthly or quarterly) is determined by the department based on liability volume.
Employers must register with the UIA and pay quarterly unemployment insurance taxes. New employers are assigned a standard tax rate (as of 2024: 2.7% on first $9,500 of each employee's wages). Rate may change annually based on experience rating.
Required for all general contractors performing work valued over $600; must provide proof of liability insurance and workers' comp. Effective fee schedule per BSEED 2024 update.
Many cities (e.g., Detroit) supersede county requirements; verify with local municipality. Not required in cities with their own licensing.
Zoning Verification Letter confirms compliance; home occupation permit required for home-based contractors (additional $100 fee).
2024 fee schedule applies; general contractors often pull their own permits for client projects.
Electrical signs require additional review; freestanding signs capped at 32 ft height in commercial zones.
Required for occupancy approval; includes fire suppression system verification.
All LLCs doing business in Michigan must file Form 4884 (LLC Return) and pay the Michigan Business Tax (MBT) alternative minimum tax or the Corporate Income Tax (CIT) if electing corporate taxation. As of 2024, LLCs are subject to a flat 6% CIT on Michigan taxable income unless they qualify for exemption. Filing is annual.
General contractors operating in Detroit must obtain a Business Privilege License and pay a 1.5% privilege tax on gross receipts. Other Michigan cities (e.g., Grand Rapids, Lansing) may have similar local taxes; requirements vary by municipality.
No statewide occupational tax on contractors. However, some cities (e.g., Warren, Sterling Heights) impose local contractor occupational taxes or license fees. Contractors must check with individual city clerks. Example: City of Warren requires a $100 annual contractor license with tax on gross receipts.
Construction demolition that generates hazardous waste triggers RCRA obligations.
All advertising, including estimates, warranties, and promotional offers, must be truthful and not deceptive.
Requires minimum wage, overtime pay, recordkeeping, and child‑labor restrictions for construction.
Provides up to 12 weeks of unpaid leave for eligible employees.
Employers must retain I‑9s for three years after hire or one year after termination, whichever is later.
Applies to any vehicle used for transporting goods or equipment across state lines.
Includes requirements for secure storage, recordkeeping, and background checks.
Issued after zoning, building, fire, and health approvals.
Registration required to avoid excessive false alarm fees.
Varies by township (e.g., Troy, Rochester Hills have separate requirements); not applicable to Detroit/Wayne.
Limits client visits, signage, storage of equipment; no employees allowed.
Required for all employers with one or more employees in Michigan under the Worker’s Disability Compensation Act (MCL 418.401). Sole proprietors and partners are not automatically considered employees and may opt out. Corporate officers in a construction LLC may elect partial exemption but must file DWC-3 form.
Not legally required by the State of Michigan for general contractors, but strongly recommended and often required by contracts, municipalities, or project owners. Regulated by the Michigan Department of Insurance and Financial Services (DIFS).
A $10,000 surety bond is required for Residential Builders and Maintenance and Alteration Contractors under Act 292 of 1980 (Construction Safety and General Building Laws). This bond protects consumers from fraudulent or substandard work. Not required for commercial-only general contractors unless doing residential work.
Required under Michigan’s No-Fault Auto Insurance Law (MCL 500.3101 et seq.) for any vehicle registered to the business or used for business purposes. Minimum required coverage: $250,000 bodily injury per person, $500,000 per accident, $100,000 property damage (250/500/100).
Not legally required for general contractors in Michigan. However, it is strongly recommended, especially for design-build or project management services. Regulated by the Michigan Department of Insurance and Financial Services (DIFS) when carried.
Not required by Michigan law unless the business manufactures or sells products. General contractors who only install materials typically do not need standalone product liability coverage. Coverage often included in broader general liability policies.
Not applicable to standard general contracting operations. Required only if the business hosts events where alcohol is served and may be mandated by venue or event permit. No state-wide mandate for contractors unless holding a liquor license.
All LLCs that have employees, open a bank account, or file any federal tax return must obtain an EIN.
Single‑member LLCs are disregarded entities and report on Schedule C of the owner’s Form 1040. Multi‑member LLCs file Form 1065 and issue Schedule K‑1 to members.
Income and expenses are reported on the owner’s personal return (Form 1040).
Requires maintaining OSHA 300 logs, providing required safety training, and complying with site‑specific safety plans.
Construction employers are always required to keep OSHA logs regardless of size.
Most general contractors do not meet TRI thresholds, but demolition of structures containing hazardous materials could trigger reporting.
The report updates the LLC’s registered agent, principal office, and members/managers.
Renewal requires proof of 2 hours of continuing education (see CE requirement below).
Minimum 2 hours of approved CE for residential builders; 4 hours for specialty contractors.
LLCs taxed as corporations must file; pass‑through entities file on owners’ returns.
Required if annual tax liability > $500.
Construction labor is generally exempt, but sale of tangible goods is taxable.
Report wages and pay UI contributions each quarter.
Electronic filing is required for most employers.
Certificate of coverage must be provided to the UIA each year.
Requires providing reasonable accommodations to qualified employees with disabilities and ensuring non‑discriminatory hiring practices.
Includes Minimum Wage, Workers’ Compensation, OSHA, and anti‑discrimination notices.
Electronic records are acceptable if they are accurate and accessible.
Fire department may require annual fire‑alarm system testing for certain commercial projects.
The FTC’s Truth-in-Advertising rule requires that all advertising claims be substantiated and not misleading; this applies to all forms of marketing, including online, print, and broadcast media.
Generally, there is no fee to obtain an EIN from the IRS; however, certain third-party services may charge a fee for assistance with the application process.
Non-compliance with the ADA can result in lawsuits, fines, and damage to your business’s reputation; ensuring accessibility is crucial for serving the public.
FTC compliance is generally a one-time requirement, but you must continuously adhere to their regulations; changes in your business practices may necessitate further review.
LLCs are typically treated as pass-through entities for federal income tax purposes, meaning the profits and losses are passed through to the owners and reported on their individual tax returns; self-employment taxes also apply.
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