How to Start an Esthetics Business in Michigan: 750-Hour Training, Exam and Establishment License
How to Start an Esthetics Business in Michigan: 750-Hour Training, Exam and Establishment License
A Michigan esthetics business needs two state credentials before it takes its first paying client: an individual esthetician license for the person doing the work, and an establishment license for the place where the work happens. Michigan treats esthetic services as performed in a licensed cosmetology establishment or school, so a skin care studio cannot simply open a room and start booking facials. This guide puts the steps in the order most owners need them, with the fees we have verified and the points you should confirm with the agency before you spend money.
If you searched for a michigan esthetician license, the individual license is the first piece, not the whole job. Your business also needs an entity filing, local approvals, a sales tax registration if you sell retail products, and the establishment license. Each one comes from a different office, which is why first-time owners often miss one.
This article is informational content, not legal or tax advice. Entity choice, tax treatment and licensing scope depend on your specific facts. Talk with a qualified attorney about formation questions and a CPA about tax questions before you commit to a structure.
What You Need Before You Start
Gather these items before you file anything. A missing document is the most common reason an application stalls.
- Proof that you are 17 or older
- Education records showing you completed 9th grade or higher (confirm which document the Bureau accepts)
- Training records showing your completed hours, from a licensed cosmetology school or from a licensed establishment that renders skin care services
- A MiPLUS account for your individual license application and your establishment application
- A chosen business name, checked on the MiBusiness Registry business search
- A resident agent who meets Michigan requirements, plus a physical registered office address (a P.O. box alone is not sufficient)
- A target location, plus written confirmation from the city, village or township that your use is allowed there
- A budget that covers the fees in this guide, and a sales tax registration if you plan to sell retail products
Step 1: Write Your Service Menu and Check It Against the Rules
Before you build a business plan, list every service you intend to offer. Then decide whether any of them crosses into medical territory. A medical spa that performs medical procedures falls under other health professions rules, not the esthetician rules. Ask LARA's Bureau of Professional Licensing what applies before you offer any medical procedure, and get the answer in writing if you can. Do not assume that a service a national chain advertises is allowed in Michigan, and do not assume a competitor's menu reflects what the state permits.
Step 2: Complete 750 Hours of Training
Anyone who begins esthetics training on or after July 1, 2024 needs at least 750 hours. The older requirement was 400 hours. If you started training before that date, confirm with the Bureau which hour requirement applies to your training before you count your hours. Training must be completed in one of two ways:
- In a licensed cosmetology school, which keeps the record of your hours
- As an apprentice for at least 6 months in a licensed establishment that renders skin care services
Keep a dated log of hours from day one. Your application needs proof of hours, and records that have to be reconstructed years later cause delays and disputes. Tuition and program length vary widely, so get the price and hour count in writing from each school before you enroll. We have not verified tuition figures for this guide.
Step 3: Choose a Business Structure and File It
Your entity filing depends on how you organize the business. Michigan has no general statewide business license. LARA's Corporations Division receives and files the documents that form an entity, and registering on MiBusiness Registry is a filing, not a license. The license that lets you perform services comes from the Bureau of Professional Licensing, which is a separate step.
| Structure | Formation filing | Yearly filing | Where you file |
|---|---|---|---|
| Limited liability company (LLC) | Articles of Organization (Form CSCL/CD-700), $50 | Annual Statement (Form CSCL/CD-2700), $25, due February 15 | LARA, through MiBusiness Registry |
| Corporation | Articles of Incorporation for Profit Corporation (Form CSCL/CD-500), $60 | Annual Report (Form CSCL/CD-2500), $25, due May 15 | LARA |
| Sole proprietorship or general partnership | No LARA formation filing | None from LARA | Assumed name certificate with the county clerk in each county where you do business |
If you form an LLC, a few details matter at the filing stage:
- The name must contain Limited Liability Company, L.L.C. or L.C., with or without periods. Check availability first, and you can hold a name for six months with Form CSCL/CD-540 for $25.
- Articles must list a resident agent and a registered office. Michigan uses the term resident agent.
- An LLC formed or qualified after September 30 does not owe the Annual Statement on the February 15 immediately following. Calendar the first statement after that.
- If you operate under a name other than the LLC's legal name, file a Certificate of Assumed Name (Form CSCL/CD-541) for $25.
LARA does not publish a guaranteed standard review time for routine filings. If you need speed, expedited review is available for an additional fee: $50 for a 24-hour review of a formation document, $100 for same-day review, $500 for two-hour review (received by 3 p.m.), and $1,000 for one-hour review (received by 4 p.m.). Expedited fees are added to the filing fee.
On taxes, Michigan imposes no franchise tax. A standard LLC is a pass-through entity, so its members report 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. Ask your CPA which structure fits your numbers.
Step 4: Apply for Your Esthetician License and Pass Both Exams
Submit your individual application through MiPLUS. The application and two-year license cost $63, whether you qualify by exam or by reciprocity. You must pass a practical exam and a theory exam administered through PSI. Confirm with the Bureau and PSI the order of steps, how to schedule each exam, and what happens after a failed attempt. Exam and retake fees are not part of our verified figures, so check them directly before you budget.
Anyone performing esthetic services for pay needs their own individual license, so plan for that when you hire. Renewal costs $48 every two years, and a lapsed license stops you from performing services until it is restored. Put the renewal date on your calendar the day you receive the license.
Step 5: Secure the Location and Local Approvals
Michigan has 83 counties, about 275 to 280 cities, about 255 to 258 villages and 1,240 townships. Your local government controls zoning, certificate of occupancy and health approvals, and the rules differ from one to the next. Before you sign a lease, ask the city, village or township three questions: whether a salon or skin care studio is permitted in that zone, what a certificate of occupancy requires for your build-out, and whether a health approval applies. Get the answers in writing.
Also check the local income tax picture. City income tax exists in only 24 Michigan cities. If your location is in one of them, confirm the rate, the filing schedule and the registration with that city's tax office.
Step 6: Apply for the Establishment License
Because esthetic services are performed in a licensed cosmetology establishment, the business needs an establishment license in addition to your individual license. The establishment application is $75, and the two-year license is issued with it. Renewal costs $50 every two years. Do not open for paid services until the license is issued.
Ask the Bureau what the establishment application requires before you commit to a build-out. Equipment layout, sanitation setup and inspection steps are not part of our verified figures, so confirm them with the Bureau before you order fixtures or sign contractor agreements.
Step 7: Register for Taxes
- Sales tax: If you sell retail products such as skin care, register with the Michigan Department of Treasury. The registration is free and the state sales tax rate is 6%. It can arrive in as little as 7 business days. Whether particular services are taxable is a question for Treasury, so confirm it before you set prices and build invoices. Register online through Treasury's online business registration page.
- Individual income tax: LLC members report their share of income on the Michigan individual income tax at 4.25% for 2026.
- Hiring: Adding staff creates registrations and withholding duties we have not verified here. Confirm them with Treasury before your first payroll.
Step 8: Calendar Every Renewal
| Item | Fee | How often | Due |
|---|---|---|---|
| Esthetician license renewal | $48 | Every 2 years | Confirm your expiration date with the Bureau |
| Establishment license renewal | $50 | Every 2 years | Confirm your expiration date with the Bureau |
| LLC Annual Statement | $25 | Yearly | February 15, beginning the year after formation |
| Corporation Annual Report | $25 | Yearly | May 15, beginning the year after incorporation |
Corporations that file late pay escalating late fees, starting at $35 for filings made from May 16 to May 31 and reaching a $75 maximum on or after September 1. Do not let the first Annual Report slip, because the escalation starts quickly.
Common Mistakes to Avoid
- Opening early. Booking clients before the establishment license is issued puts your business and your clients at risk.
- Miscounting hours. Owners who assume 400 hours applies, or who cannot document their hours, lose time at the application stage.
- Naming an LLC without the required words. The name must contain Limited Liability Company, L.L.C. or L.C.
- Using a P.O. box as the registered office. A P.O. box alone does not meet the requirement.
- Offering medical procedures under esthetician rules. Medical services fall under other health professions rules.
- Signing a lease first. Confirm zoning, certificate of occupancy and any health approval before you commit to the space.
- Missing the yearly filing. Calendar the February 15 Annual Statement or May 15 Annual Report the day you form the entity.
- Making cure claims in marketing. Phrases that promise to treat or cure a condition can turn a cosmetic product into a regulated drug.
What Results to Expect, and How to Describe Them
Most esthetic services and retail skin care products are regulated as cosmetics. The FDA treats a product as a drug if it is intended to affect the structure or function of the body or to treat a disease, so your wording matters as much as your formulation. Use hedged language in your marketing. Phrases such as many clients report smoother-feeling skin after a series of facials, or designed to help the look of fine lines, are far safer than erases wrinkles or cures acne.
Results vary by person, skin type, consistency and the products used. A treatment is not a substitute for medical care, and clients with a skin condition should see a qualified medical professional. Put that statement in your intake and consent forms, and train staff to use the same language.
Next Steps
- Write your service menu and confirm the medical boundary with the Bureau.
- Complete and document 750 hours of training, or confirm which hour rule applies to you.
- Choose a structure and file it with LARA or your county clerk.
- Apply for your esthetician license through MiPLUS and schedule the PSI exams.
- Get written local approval for your location.
- Apply for the establishment license before you open.
- Register with Treasury for sales tax if you sell retail products.
For reference, these official pages carry the current forms and fees: the LARA Corporations Division page, the MiBusiness Registry portal, and the Michigan Department of Treasury tax page. The Michigan Small Business Development Center can also help you check your plan before you file.
This article is informational content, not legal or tax advice. Verify every fee, deadline and requirement on the agency pages above before you file, and consult a qualified attorney and CPA for your situation.