Lansing Business License: Council-Designated Licenses, 1% Income Tax and Cannabis

If you are searching for a business license in Lansing, Michigan, the short answer is that the City of Lansing does not issue a general business license to every company. The City Clerk licenses a specific list of activities. Everything else you need comes from the state, your county, or the city's zoning and building departments. This guide shows you how to work out which approvals apply to you, the order to file them in, and what the Lansing city income tax means for your numbers.

This article is informational only. It is not legal, tax or licensing advice. Confirm current fees and requirements with the agency named in each step before you pay a fee, sign a lease or buy equipment.

Michigan has no general business license, and Lansing does not either

Michigan does not issue one statewide business license. The Corporations Division of the Michigan Department of Licensing and Regulatory Affairs (LARA) receives, reviews and files the documents that form and maintain a business entity. LARA states that the division does not license businesses. Registering an LLC or corporation through the MiBusiness Registry is a filing, not a license.

Licensing in Michigan happens by trade or activity, and local governments add their own requirements on top. For a Lansing business, the approvals fall into five layers:

Layer	Who handles it	What it gives you
1. Entity filing or assumed name	LARA (LLCs, corporations, limited partnerships) or the county clerk (sole proprietors and general partnerships)	Legal existence and the right to use your name
2. Tax registration	Michigan Department of Treasury	A sales tax license for retailers, at no charge
3. Activity license	Lansing City Clerk for listed activities; state agencies for trades and regulated industries	Permission to perform the activity
4. Health approval	Ingham County Health Department for food businesses	Food safety approval
5. Location approvals	City of Lansing zoning and building	The right to operate at a specific address

What you need before you start

• A business name you have checked. Search the MiBusiness Registry before you file. LLC names must include the words Limited Liability Company or the abbreviation L.L.C. or L.C., with or without periods.
• A resident agent. Michigan uses the term resident agent. The agent must be a Michigan resident, a Michigan corporation, a foreign corporation authorized to do business in Michigan, a Michigan LLC, or a foreign LLC authorized in Michigan. A P.O. box alone is not sufficient for the registered office.
• The names and addresses the formation form asks for. Have your organizer and member information ready before you open the Articles of Organization (Form CSCL/CD-700).
• The Lansing address you plan to use. Leased, owned and home-based locations are each reviewed differently, so settle the location before you commit to the activity.
• A list of every activity you will perform. Match each one against Lansing's 18 licensed categories and the state agencies listed in Step 2.
• Budget for the filing fees. The LLC Articles of Organization cost $50. A name reservation on Form CSCL/CD-540 costs $25 and holds the name for six months following the month of filing. A Certificate of Assumed Name for an LLC costs $25.

Step-by-step: getting licensed in Lansing

Step 1: Check Lansing's list of licensed activities

The City Clerk licenses only the activity types listed on the city's Business Licenses page. There are 18 of them: auctioneer; billiard room and bowling alley; building demolition and movers; cabaret; canvasser or street peddler; collection bin; fireworks display; going out of business sale; health club; ice cream peddler; marijuana facilities; scooter (electric, dockless); secondhand dealer; show license; sign erector; street musician; transient merchant; and waste hauler.

Fees vary by license, so ask the Clerk's office for the current fee schedule before you budget. Do not assume a fee from another city or from an older article.

Step 2: Check the state license search

LARA directs new owners to its State License Search to see whether their business needs a state license. Licensing is split by agency. The Bureau of Professional Licensing handles many occupations. The Bureau of Construction Codes handles construction trades. The Michigan Liquor Control Commission (MLCC) handles liquor. The Cannabis Regulatory Agency (CRA) handles cannabis. The Michigan Department of Agriculture and Rural Development (MDARD) handles agriculture and food processing. Child care licensing, which moved from LARA to MiLEAP in 2023, covers child care. Run your activity through the search first, then confirm the requirements with the agency that actually issues the license.

Step 3: File your entity or assumed name

Your filing depends on how you are organized:

• LLC: File Articles of Organization (Form CSCL/CD-700) for $50 with LARA through the MiBusiness Registry. The yearly Annual Statement (Form CSCL/CD-2700) costs $25 and is due February 15, beginning the year after formation. An LLC formed or qualified after September 30 does not owe a statement on the February 15 immediately following.
• Corporation: File Articles of Incorporation for Profit Corporation (Form CSCL/CD-500) for a $60 minimum. The Annual Report (Form CSCL/CD-2500) costs $25 and is due May 15 each year, beginning the year after incorporation.
• Sole proprietor or general partnership: You do not file with LARA. File an assumed name certificate with the clerk of each county where you do business under MCL 445.1. County fees are set by statute and by each county clerk, so confirm the amount with the clerk.
• LLC or corporation using a different trade name: File a Certificate of Assumed Name (Form CSCL/CD-541) with LARA. It costs $25 for an LLC 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, and you renew it with Form CSCL/CD-542.

LARA does not publish a guaranteed standard review time for routine filings. Optional expedited review is available for an extra fee, for example $50 for a 24-hour review of a formation document, $100 for same-day review, $500 for a two-hour review received by 3 p.m., or $1,000 for a one-hour review received by 4 p.m. Expedited review is requested on Form CSCL/CD-272 in addition to the filing fee.

Step 4: Name your resident agent in the Articles

The resident agent and registered office must appear in the Articles of Organization. Changes after filing are made on Form CSCL/CD-520. The registered office is the physical location of the agent. It can match your place of business, but it does not have to.

Step 5: 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 page. Service businesses that do not sell taxable goods may not need this step, so confirm your status with Treasury.

Step 6: Clear the location with the city

The city's zoning and building approvals apply to a new location, whether you lease a storefront, buy a building or run the business from home. Confirm with the City of Lansing that the use is permitted at the address before you sign a lease, buy equipment or print signs. Ask whether a certificate of occupancy or building permit is needed for any build-out or change of use.

Step 7: Get health approval for food businesses

Food businesses are licensed through the Ingham County Health Department, not the City Clerk. Contact the health department early, because plan review and inspection can affect your opening date and your build-out.

Step 8: Handle marijuana facilities at two levels

Marijuana facilities need approval from two places. The Clerk licenses them under the city's list, and the state Cannabis Regulatory Agency issues the state license. Check the CRA and the city for current approvals before you commit to a location, a lease or an investor timeline. Do not treat one approval as a substitute for the other.

Step 9: Apply for your Clerk license

Once your entity, location and state approvals are settled, apply for the Clerk license that matches your activity. Ask the Clerk's office which documents they need, the current fee for your category, and whether any inspection or renewal applies.

Step 10: Plan for the Lansing income tax

Lansing is one of only 24 Michigan cities with a city income tax. The city's 2026 list sets the rate at 1% for residents and 0.5% for nonresidents. How the city tax applies to your entity's income depends on your residence and on how the entity is taxed, so confirm the treatment with the City of Lansing and a CPA before you set prices or distributions.

The state side works like this. Michigan has no franchise tax. A standard LLC is a pass-through entity, so its members report the income on the Michigan individual income tax at the flat 4.25% rate for the 2026 tax year. An LLC that elects federal C corporation treatment is subject to the 6% Michigan Corporate Income Tax. Michigan also offers an elective Flow-Through Entity Tax. The only recurring LARA charge for an LLC is the $25 Annual Statement.

Tips for a faster, cleaner filing

• Settle the location and the activity list before you file the entity. Those two answers decide most of the approvals.
• Keep one master list of deadlines. The LLC Annual Statement is due February 15, and the corporation Annual Report is due May 15.
• Ask each agency for its current fee schedule in writing, and save the answer with your records.
• If you plan to open several locations or add activities later, check each new location with the city before you sign.

Common mistakes to avoid

• Treating the LARA filing as a license. An approved Articles of Organization lets you exist as an entity. It does not permit you to perform a regulated activity.
• Assuming Lansing licenses your business. If your activity is not on the Clerk's list of 18, the city's Clerk license may not apply, but state and location rules still do.
• Using a P.O. box as the registered office. A P.O. box alone is not sufficient. The registered office must be a physical location.
• Signing a lease before the zoning check. A location that fails the city's review can cost you the deposit and the build-out money.
• Missing a deadline. Late annual filings add cost, and a corporation's late fees rise on a published schedule after May 15.
• Ignoring the cannabis second layer. A state license without the city approval, or the reverse, will not let you open.
• Assuming the 1% city tax applies the same way to every owner. Residence and entity type both matter.

Expected results

With the entity filed, the location cleared and the Clerk and state approvals in hand, you may be able to open your Lansing business on schedule. Timing is not guaranteed. Processing times for state filings are not published as a fixed standard, and local reviews depend on the department's current workload. Expedited options can shorten the state filing review, but they do not shorten zoning, health or cannabis reviews. Plan a buffer in your opening date, and confirm each step with the agency involved.

When to talk to a professional

Talk to a business attorney before you sign a lease with personal guarantees, bring in partners, or choose between an LLC and a corporation. A CPA should review the Lansing city tax, the Michigan income tax and any Flow-Through Entity Tax or C corporation election. For a regulated activity such as cannabis, liquor or a licensed profession, a lawyer who works in that field can save months. The Michigan Small Business Development Center can also help you think through the sequence of filings and approvals.

Disclaimer: This article is general information about business licensing in Lansing and Michigan. It is not legal, tax or licensing advice, and it does not create an attorney-client or accountant-client relationship. Fees, deadlines and rules change. Confirm every requirement with the agency that issues it before you file or pay.