-Michigan is inexpensive to open an LLC.
-Michigan has a homestead exemption for property taxes.
The state of Michigan does have an individual income tax. Unlike most states with income tax, it is calculated as a flat percentage of 4.25% of the Federal adjusted gross margin (AGI) for 2020 (this does not include additional local income taxes that may be imposed by cities in Michigan).
The state of Michigan has a flat Corporate Tax rate of 6.00%. For other business entities that are flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed the individual income tax rate of 4.25%
Unlike many other states Michigan has a single sales tax rate, at the state level. The state rate is 6.00%
The average property tax rate for residential property in the state of Michigan is 1.44% making it more expensive than other states (the national median is 0.93%). The state of Michigan does have a homestead tax credit, if you meet certain requirements.
Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:
Michigan is an inexpensive state to open an LLC. Here are some important facts: