Grand Rapids Business License: Clerk Activity Licenses, 1.5% Income Tax and Home Occupation Rules

If you search for a business license in Grand Rapids, MI, you will expect one form, one fee and one office. That is not how it works. Grand Rapids does not issue a general business license. The City Clerk's Office issues 18 separate activity licenses, one for each kind of activity the city regulates. A business in Grand Rapids may need some combination of those city licenses, plus state filings, state trade licenses and the city income tax. This guide shows you how to sort out what applies to you.

This article is informational, not legal or tax advice. Fees and rules change, so confirm every figure on the agency page before you pay. For complex situations, including entity formation, tax treatment and zoning disputes, talk with a qualified attorney or CPA.

What You Need Before You Start

Gather these items before you begin. Not every item applies to every business.

• A written description of what you will do, who you will serve and where you will operate (downtown, a home office, a truck, a cart, an event site)
• A valid driver's license, which the Clerk requires for applicants on several license types
• Confirmation that you owe the city nothing
• For food vendors, a certificate of liability insurance showing $1,000,000 in coverage and a food license from the Kent County Health Department
• If you have formed an LLC or corporation, your Articles of Organization or Articles of Incorporation and the name of your resident agent
• Your federal EIN, and a Michigan Treasury sales tax registration if you sell taxable goods

Step 1: Confirm Michigan Has No General Business License

Michigan has no single statewide business license. LARA's Corporations Division receives, reviews and files the documents that form and maintain business entities. It does not license businesses. Forming an LLC through the MiBusiness Registry is a filing, not a license, and it does not authorize you to operate. Licensing in Michigan is by trade or activity, so your next step is to identify which agencies govern your work.

Step 2: Check State Licenses by Trade or Activity

Depending on what you do, the state license may come from one of these agencies:

• LARA Bureau of Professional Licensing, for many regulated occupations
• LARA Bureau of Construction Codes, for building trades
• LARA child care licensing, for child care operations
• Michigan Department of Agriculture and Rural Development (MDARD), for food and agricultural operations
• Michigan Liquor Control Commission (MLCC), for alcohol sales
• Cannabis Regulatory Agency, for cannabis businesses

LARA directs new owners to its State License Search to check whether a state license applies to your business. Search by your occupation or activity, not by your business name.

Step 3: Find Your City Activity License

The City Clerk's Office issues these 18 activity licenses. Check the Business Licenses page on the City of Grand Rapids website to match your activity to one or more of them:

1. Downtown vendor
2. Going out of business
3. Home occupation
4. Hotel or motel
5. Indoor events (50 or more people)
6. Liquor
7. Mobile food vendor
8. Mobile vending cart
9. Noise permit
10. Parking facility
11. Pawnbroker
12. Pedicab
13. Second hand
14. Snowplow
15. Solid waste hauler
16. Sound truck
17. Transient merchant
18. Valet parking

Step 4: Confirm the Fee for Your License

The fees below appear on the Clerk pages as of 2026. Confirm the current amount on the Clerk page before you submit payment, because the city can change them.

License	Fee as of 2026
Mobile food vendor, truck, trailer or concession	$390 for the first unit, $26 for each additional unit. Special event: $257, plus $51 for each extra event
Mobile vending cart	$372
Downtown cart	$416, plus $38 for each extra cart
Transient merchant	$333
Second hand	$646 new, $229 renewal
Going out of business (30 days)	$50
Pedicab	$377 new, $184 renewal
Valet company	$364 new, $184 renewal
Home occupation, Class B, one-room rental	$634 first issuance, $229 renewal

Some licenses carry extra conditions. Applicants must hold a valid driver's license and owe the city nothing. Food vendors must carry $1,000,000 in liability insurance and hold a food license from the Kent County Health Department. Confirm the exact food license requirement with that health department before you apply.

Step 5: Form Your Entity, If You Need One

If you are forming an LLC, file Articles of Organization (Form CSCL/CD-700) with LARA. The filing fee is $50. The name must include Limited Liability Company, LLC, L.L.C. or L.C. Check name availability first on the MiBusiness Registry business search. Michigan calls the registered agent a resident agent, and the resident agent and registered office must appear in the Articles. A P.O. box alone is not sufficient for the registered office.

After filing, an LLC files an Annual Statement (Form CSCL/CD-2700) for $25, due February 15 each year, beginning the year after formation. An LLC formed or qualified after September 30 does not owe a statement on the February 15 immediately following.

Corporations file Articles of Incorporation for Profit Corporation (Form CSCL/CD-500) for $60 and an Annual Report (Form CSCL/CD-2500) for $25, due May 15 each year, beginning the year after incorporation. Late fees rise on a published schedule.

Forming an entity does not satisfy any city activity license. You still need the Clerk license for your activity.

Step 6: File an Assumed Name if You Use a DBA

If you operate under a name other than your legal name, you may need an assumed name filing. LLCs, corporations and limited partnerships file a Certificate of Assumed Name (Form CSCL/CD-541) with LARA. The fee is $25 for an LLC and $10 for a corporation or limited partnership. Sole proprietors and general partnerships instead file with the county clerk in each county where they do business under MCL 445.1. For Grand Rapids, that is the Kent County Clerk. County fees are set separately by statute and by each county clerk, so confirm the amount with that office.

Step 7: Register for Sales Tax if You Sell Taxable Goods

Retailers must 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. The state sales tax rate is 6%. Register online through the Treasury online business registration. This is a tax registration, not a city activity license, so it does not replace any Clerk license.

Step 8: Apply for Your Clerk License and Confirm Zoning

Submit your application through the City Clerk's process listed on the Business Licenses page. Before you apply, confirm that your location and activity are permitted under city zoning. Local zoning, certificate of occupancy and health approvals can apply in addition to the Clerk license. Confirm those requirements with the appropriate city office. If you plan to hold events with 50 or more people, check the indoor events license separately.

Step 9: Understand Home Occupation Rules

Running a business from your home usually falls under the home occupation license. The class you need depends on how you operate:

• Class B applies when customers visit the home. The one-room rental fee listed on the Clerk page is $634 for the first issuance and $229 for renewal. Confirm which Class B fee category matches your use on the Clerk page.
• Class C applies to a bed and breakfast or rooming house.

If no customers come to the property, the Class B requirement may not apply to you, but confirm that with the Clerk before you assume it. Home occupation rules also depend on zoning, so check that your residential zone allows the activity.

Step 10: Plan for the City Income Tax

Grand Rapids levies a city income tax of 1.5% on residents and 0.75% on nonresidents. Only 24 Michigan cities levy a city income tax, and Grand Rapids is one of them. This city tax is separate from the state individual income tax, which is a flat 4.25% for the 2026 tax year.

How the city tax applies to your business depends on your entity type. A standard LLC is a pass-through entity, so its members report income on their own returns, while an LLC that elects C corporation treatment is taxed differently. Confirm with the City of Grand Rapids income tax office how the tax applies to your entity and what filing schedule you must follow.

Tips and Common Mistakes

• Do not assume a state filing covers the city. An LLC filing, an assumed name certificate and a Treasury registration do not give you a Clerk activity license.
• Do not treat the LARA entity filing as a license. It records your entity with the state. It does not authorize you to operate.
• Check the activity list first. Many businesses need a license they did not expect, such as a noise permit for a sound truck or an indoor events license for a gathering of 50 or more people.
• Use a real registered office. A P.O. box alone will not satisfy the requirement.
• Calendar your annual filings. LLC Annual Statements are due February 15 and corporation Annual Reports are due May 15.
• Do not run a customer-facing home business without checking the class. Customer visits point to Class B.
• Keep your insurance current. Food vendors must maintain $1,000,000 in liability coverage.

What to Expect After You Apply

Once you have the right licenses, you will generally be able to open or operate within the scope the license allows. Many owners find that the Clerk review and state filings take the most time, so start early. The Clerk page lists current fees and requirements, and it is the best source for timing questions. Plan for renewal fees on licenses that carry them, such as second hand, pedicab and valet licenses, which list a separate renewal amount.

Some owners also find that working with a small business advisor helps them sort through overlapping state and city rules. The Michigan Small Business Development Center is a useful starting point for that kind of help.

Next Steps

1. Write a one-paragraph description of your activity and location.
2. Match that description to one or more of the 18 Clerk licenses and to any state trade license.
3. Confirm the fee on the Clerk page and the state agency page.
4. File your entity or assumed name, if needed, with the correct office.
5. Register with Treasury if you sell taxable goods.
6. Confirm zoning and the city income tax treatment for your entity before you open.

Disclaimer: This article is informational only and is not legal, tax or licensing advice. Fees, deadlines and rules change. Confirm all figures with the City of Grand Rapids Clerk's Office, LARA, the Michigan Department of Treasury and the other agencies named here. For complex situations, consult a qualified attorney or CPA.