Ann Arbor Business License: No General License, Clerk Permits and the Short-Term Rental Moratorium

If you searched for a business license in Ann Arbor, MI, the short answer is that the city does not issue one general license that covers every business. The City Clerk issues licenses and permits for a specific list of activities, and a few of them come with conditions that affect where you can operate. Michigan has no general statewide business license either. In practice, starting a business in Ann Arbor means three separate checks: an entity filing with the state, an activity license or permit where one applies, and zoning and occupancy approval for your address.

This guide walks through those checks in order. It is informational only and is not legal or tax advice.

What you need before you start

• Your business name, plus a second choice in case the first is taken
• Your entity type decided: sole proprietorship, general partnership, LLC, or corporation
• The Ann Arbor address where you will operate, or a short list of candidate addresses
• A complete list of what you will sell or do, so you can compare it against the city's permit list
• For an LLC or corporation, a resident agent (Michigan's term for a registered agent) and a registered office
• Access to the MiBusiness Registry portal at https://mibusinessregistry.lara.state.mi.us/
• The City Clerk's phone number, 734-794-6140
• A budget for the state fees listed in the steps below

Step 1: Decide whether you need an entity filing

A sole proprietor who operates under their own legal name files nothing with the state to start. A sole proprietor or general partnership that operates under a different name must file an assumed name certificate, covered in Step 4. An LLC or corporation must file a formation document with the Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division. Keep in mind that the entity filing creates your business entity. It is not a license to operate.

Step 2: File the formation document with LARA

For an LLC, file the Articles of Organization (Form CSCL/CD-700). The filing fee is $50. The name must contain the words Limited Liability Company or the abbreviation L.L.C. or L.C., with or without periods. For a corporation, file the Articles of Incorporation for Profit Corporation (Form CSCL/CD-500). The filing fee is $60.

Check name availability on the business search at https://mibusinessregistry.lara.state.mi.us/search/business before you file. If you need time to decide, you can optionally hold a name with Form CSCL/CD-540 for $25 (an LLC) or $10 (a corporation). The hold lasts six months following the month of filing.

LARA does not publish a guaranteed standard review time for routine filings. If you need speed, the Expedited Service Request (Form CSCL/CD-272) is an extra charge on top of the filing fee:

• 24 hour review of a formation document: $50 extra
• Same day review of a formation document: $100 extra
• Two hour same day review: $500 extra (must be received by 3 p.m.)
• One hour same day review: $1,000 extra (must be received by 4 p.m.)

Step 3: Name a resident agent and registered office

Michigan requires a resident agent and registered office in the Articles of Organization or Articles of Incorporation. The resident agent must be a Michigan resident, a Michigan corporation, a foreign corporation with a certificate of authority to transact business in Michigan, a Michigan limited liability company, or a foreign limited liability company authorized to transact business in Michigan. The registered office is the physical location of that agent. It can be your business address, but a P.O. box alone is not sufficient. If you later change the agent or office, file Form CSCL/CD-520.

Step 4: File an assumed name certificate

Sole proprietorships and general partnerships file an assumed name certificate with the county clerk under MCL 445.1. For Ann Arbor, that is the Washtenaw County Clerk. The county fee is set by statute and by the clerk's office, so confirm the current amount with that office before you pay.

LLCs, corporations and limited partnerships file with LARA instead, on the Certificate of Assumed Name (Form CSCL/CD-541). The fee is $25 for a limited liability company and $10 for a corporation or limited partnership. The certificate is effective through December 31 of the fifth full calendar year after the year it was filed, unless a certificate of termination is filed. Check with LARA about how to renew it before it expires.

Step 5: Check the City Clerk's permit list

The Ann Arbor City Clerk issues licenses and permits for a listed set of activities. The list includes auctioneers, backyard chickens, charitable gaming, commercial applicators of pavement sealant, commercial quadricycles, gem and precious metal dealers, going out of business sales, liquor, manufactured fertilizer registration, and marijuana facilities, along with others. Read the full list with the Clerk before you assume your business is exempt.

Call the Clerk at 734-794-6140 with your activity list. Ask three questions: whether a permit applies, what it costs, and how long it takes. Get the answers in writing if you can. Ann Arbor's permit fees and processing times are not listed here, so treat any number you find elsewhere as unconfirmed until the Clerk confirms it.

Step 6: Check state licensing for your trade

Michigan licenses by profession and activity, not by business. LARA's Bureau of Professional Licensing, its Bureau of Construction Codes, the Michigan Department of Agriculture and Rural Development (MDARD), the Michigan Liquor Control Commission (MLCC), the Cannabis Regulatory Agency, and LARA's child care licensing unit each handle different trades. LARA directs new owners to its State License Search to check whether a state license applies to their business. Run your activity through that search before you sign anything.

Step 7: Confirm zoning and occupancy before you sign a lease

This is the step most new owners skip, and it is the costliest to fix later. Zoning compliance and any building or occupancy approval for a new commercial space come through the city's building and planning staff. Ask them, in writing if possible, whether your intended use is allowed at that address and what approvals the space needs. Do this before you sign the lease, not after.

Marijuana facilities have the heaviest requirements. They need zoning approval, a building permit, and the Clerk's marijuana facility permit before they can operate.

Step 8: Short-term rentals: check the moratorium first

A short-term rental in Ann Arbor needs a city license under Chapter 97 of the city code. The license is limited to one per dwelling, and only the owner or a permanent resident may hold it.

In July 2026, the City Council directed the City Attorney to prepare an ordinance imposing a six-month moratorium on new short-term rental licenses, while allowing renewals for existing and compliant rentals (Resolution R-26-301). A resolution directing that work is not the same as an adopted moratorium. As of today, you need to confirm with the city whether that moratorium is in effect and whether a new applicant can be licensed at all. The city's short-term rental page currently lists a license fee of $500 per unit per year and says review can take up to 21 business days. Do not plan a rental purchase or lease around a license you have not confirmed you can get.

Step 9: Register for taxes

If you sell taxable goods, register with the Michigan Department of Treasury for a sales tax license. The registration is free and can arrive in as little as 7 business days. Register online at https://www.michigan.gov/taxes/business-taxes/new-biz/online-business-registration. The state sales tax rate is 6%.

Income tax depends on your entity. A standard LLC is a pass-through, so its members report income on Michigan individual income tax at the flat 4.25% rate for the 2026 tax year. An LLC that elects C corporation treatment federally pays the 6% Michigan Corporate Income Tax. Michigan does not impose a franchise tax. Ann Arbor does not levy a city income tax, since only 24 Michigan cities do, but confirm that with the city before you budget.

Step 10: Calendar your recurring filings

An LLC files an Annual Statement with LARA for $25, due February 15 each year. An LLC formed after September 30 does not owe the statement for the February 15 immediately following. A professional LLC pays $75 and incurs a $50 late fee if it files after February 15.

A corporation files an Annual Report for $25, due May 15 each year. A corporation formed on or after January 1 and before May 16 does not file a report for that calendar year. Late fees rise on a published schedule, from $35 for May 16 to May 31 up to a $75 maximum on or after September 1.

Tips and common mistakes

• Assuming the LARA filing is a license. Forming an LLC or corporation creates the entity. It does not authorize you to sell alcohol, cut hair, or run a short-term rental.
• Paying a third party for a "business license." Compliance mailers and filing services often look official. Check any notice against the City Clerk and LARA before you pay.
• Signing a lease before the zoning check. A space that suits your product may not allow your use or may need occupancy work you did not budget for.
• Using a P.O. box as the registered office. Michigan requires a physical location for the resident agent.
• Skipping the assumed name. Operating as a sole proprietor under a trade name without filing the county certificate is a common and easy-to-avoid error.
• Dropping the LLC designator from your name. The Articles must include Limited Liability Company or L.L.C. or L.C., so pick the full name early.
• Counting on a short-term rental license that is frozen. Confirm the moratorium status with the city before you buy a property for that purpose.

What to expect when you finish

If your formation filing is accepted, your assumed name is on file, and the Clerk confirms that no city permit applies or issues the ones that do, you will have most of the paperwork a new Ann Arbor business typically needs. Timing depends on the agency and on whether you paid for expedited review. Because LARA does not publish a guaranteed review time, plan for some delay between filing and your opening date, and keep your lease and vendor commitments flexible until your approvals are in hand.

Results also vary by trade. A simple online retailer may need only the entity filing, the sales tax registration and the assumed name certificate. A business that serves alcohol, handles marijuana, or operates in a regulated trade will need several more approvals, and some may take longer than you expect.

Where to get help

The Michigan Small Business Development Center offers free advising at https://michigansbdc.org/, and the SBA's Michigan district page is at https://www.sba.gov/district/michigan. For the entity filing itself, the LARA Corporations Division page is at https://www.michigan.gov/lara/bureau-list/cscl/corps.

This article is informational only and is not legal or tax advice. Fees, deadlines and the status of Ann Arbor's short-term rental moratorium can change, so confirm each one with the named agency before you act. If your business involves a complex entity structure, a regulated trade, or a property purchase, talk with a qualified attorney and a CPA before you file.