How to Start a Restaurant in Michigan: Health Department License, Plan Review and Liquor Options

Opening a restaurant in Michigan means dealing with several layers of government at once. The state does not issue a general business license. The paperwork is spread across LARA, the Michigan Department of Treasury, your local building department, your county or district health department and, if you plan to serve alcohol, the Michigan Liquor Control Commission (MLCC). This guide walks through how to start a restaurant business in Michigan in the order that avoids the most expensive mistakes.

Disclaimer: This article is informational content, not legal or tax advice. Fees and rules change, and requirements vary by city, township, county and health district. Confirm every figure with the agency named before you commit money, and talk to a qualified attorney and a CPA about your situation.

What You Need Before You Start

Gather these items before you file anything, because most of the later steps ask for them:

• A business name checked on the MiBusiness Registry business search. An LLC name must contain “Limited Liability Company,” “L.L.C.” or “L.C.”
• A resident agent and registered office in Michigan. The resident agent must be a Michigan resident or an entity authorized to do business in Michigan, and a P.O. box alone is not enough for the registered office.
• A federal Employer Identification Number from the IRS if you will hire employees, open a business bank account or form a multi-member entity.
• A short list of candidate addresses, with the square footage, seat count, planned hours and any outdoor seating for each.
• A written menu that explains how each item is prepared, stored and reheated. Health plan reviewers ask for this.
• A rough kitchen layout with equipment, sinks, handwashing stations, floor and wall finishes, and ventilation.
• A startup budget that covers filing fees, plan review and license fees, equipment, deposits, insurance and several months of working capital.

Step by Step: Starting a Restaurant in Michigan

Step 1: Choose Your Legal Structure and Register It

Your structure decides where you file. Sole proprietors and general partnerships do not file with LARA. They file an assumed name certificate with the clerk of each county where they do business, and the fee is set by statute (MCL 445.1) and differs by county, so confirm it with the clerk. LLCs, corporations and limited partnerships file with the LARA Corporations Division through the MiBusiness Registry Portal at mibusinessregistry.lara.state.mi.us.

For an LLC, the formation document is the Articles of Organization (Form CSCL/CD-700), with a $50 filing fee. Michigan calls the registered agent a resident agent, and it must appear in the Articles. Each year the LLC files an Annual Statement (Form CSCL/CD-2700) for $25, 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 that immediately follows. If you want to hold a name while you prepare your paperwork, a name reservation (Form CSCL/CD-540) costs $25 and holds the name for six months following the month of filing.

A corporation files Articles of Incorporation for Profit Corporation (Form CSCL/CD-500) with a $60 minimum filing fee. It then files an Annual Report (Form CSCL/CD-2500) for $25, due May 15 each year.

Registering an entity is a filing, not a license. LARA states that its Corporations Division does not license businesses. An approved LLC gives you legal existence but does not give you permission to serve food or alcohol.

If the restaurant will operate under a name other than the legal name of the owner or entity, 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, and it is effective through December 31 of the fifth full calendar year after filing.

Michigan imposes 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. Ask a CPA which structure fits your expected profit, owners and exit plans.

Step 2: Register With Treasury for a Sales Tax License

Restaurants collect sales tax, so you need a sales tax license from the Michigan Department of Treasury. The Treasury sales tax license is a free tax registration, not a business license. It can arrive in as little as 7 business days. The state sales tax rate is 6%. Register through Treasury’s online business registration page at michigan.gov/taxes.

Treasury decides which sales are taxable and how they are taxed, so confirm how your menu items, takeout, delivery, catering and any alcohol sales are treated before you set prices. Ask the Michigan SBDC at michigansbdc.org for free help if you want a second look at your budget.

Step 3: Confirm Zoning and the Certificate of Occupancy

Before you sign a lease, ask the city, village or township planning office whether a restaurant is allowed at the address. Ask about conditions such as hours, parking, signage, grease or odor controls, and outdoor seating. Michigan has 83 counties, about 275 to 280 cities, about 255 to 258 villages and 1,240 townships, and each one sets its own rules. A neighboring town’s answer does not apply to your address.

Next, ask the local building department whether the space has a Certificate of Occupancy for food service, and what work is needed to get one. Get the Certificate of Occupancy from the local building department before you open. Ask early, because a change of use can require upgrades to the building that you did not budget for.

Remodeling work needs its own permits. Plumbing, electrical and mechanical work may be permitted through the local building department or through LARA’s Bureau of Construction Codes, depending on the jurisdiction. Confirm which one covers your project before you hire a contractor.

Also check whether your city levies a city income tax. Only 24 Michigan cities do, and if your address is in one of them, ask the city treasurer how it applies to your business.

Step 4: Get Health Department Plan Review Before Construction

Restaurants are licensed by the local health department, not the state. Each health department sets its own fees and its own plan review process. Plans for a new kitchen or a remodeled kitchen go through plan review before construction begins. Submit your plans before you buy equipment or start demolition, because a change requested after construction is far more expensive than a change made on paper.

Find the health department that covers your address. Detroit has its own Health Department. Everywhere else, confirm which county or district health department covers the address, then ask for its current fee schedule, plan review checklist and inspection process. Do not assume that a fee from one county applies in another.

Detroit’s January 2026 schedule shows how these costs are structured. Confirm the current figures with the Detroit Health Department before you budget:

Seating capacity	Fixed food service license (includes $30 state fee)	Plan review
0 to 50 seats	$498	$1,100
51 to 100 seats	$553	$1,265
101 seats and up	$663	Confirm with the Detroit Health Department

Ask the health department four questions before you submit: how it verifies the certified food safety manager that the Michigan Food Law requires every food service establishment to employ (MCL 289.2129), how many inspections happen before opening, what triggers a re-review if the menu changes, and how long a plan review usually takes at its current workload.

Step 5: Decide Whether You Need a Liquor License

If you plan to serve beer, wine or spirits, you need a license from the MLCC. Start this step early, because it is often the longest one. Several license types are quota licenses, meaning the number available is limited by local population. Availability depends on your municipality, and new Class C and tavern licenses need a recommendation from the city council, village council or township board before they can proceed. A brewpub license is issued together with one of them.

• Class C license: $600 per year plus a $70 nonrefundable inspection fee, a quota license. This is the option most full-service restaurants with a full bar consider. Confirm the privileges with the MLCC before you design your bar program.
• Tavern license: $250 per year plus a $70 inspection fee, also a quota license. Confirm with the MLCC what a tavern license permits before you plan your menu and bar program around it.
• Brewpub license: $100 initial and annual renewal, issued only together with a Class C, tavern or hotel license (each license requested carries its own $70 inspection fee). Confirm the requirements and what it allows with the MLCC if you plan to brew beer on site.

Speak with your local council or board early. Ask whether it will consider a recommendation, what it requires from applicants, and whether a quota license is available in your area. If the quota is full, a license may sometimes be acquired from an existing holder. Have an attorney review any purchase agreement, and confirm the transfer requirements with the MLCC before you sign anything.

Step 6: Set Up Banking and Insurance

Open a separate business bank account and keep your restaurant’s money out of your personal accounts. Ask your insurer about commercial general liability coverage, property coverage for the equipment and build-out, and liquor liability coverage if you will serve alcohol. Michigan requires workers’ compensation coverage if you have 3 or more employees, or 1 or more employees working 35 or more hours a week for 13 weeks (MCL 418.115), so confirm your obligation with your insurer before you hire your first employee.

Step 7: Calendar Your Recurring Filings

Restaurants have many renewal dates. Put them on one calendar the day you register:

• LLC: Annual Statement, $25, due February 15 each year, beginning the year after formation.
• Corporation: Annual Report, $25, due May 15 each year. If the report is late, the total due rises on a published schedule, from $35 for filings made May 16 to May 31 up to a $75 maximum on or after September 1.
• Assumed name certificate: effective through December 31 of the fifth full calendar year after filing, renewable with Form CSCL/CD-542.
• Sales tax: returns on the filing frequency Treasury assigns to your account.
• Health license: renewal date set by your local health department.
• Liquor license: renewal date set by the MLCC for your license.

Common Mistakes to Avoid

• Signing a lease before checking zoning and the Certificate of Occupancy. A space that cannot legally hold a restaurant is not a bargain, however low the rent.
• Treating LARA registration as a license. Michigan’s entity filing does not authorize you to sell food or drink.
• Starting construction before plan review. Moving a hood, sink or walk-in after the fact can cost far more than the plan review itself.
• Assuming the county fee applies in your city. Detroit and other health jurisdictions set their own schedules.
• Counting on a quota liquor license. If your municipality’s quota is full, you may need a transfer or a different plan.
• Using a P.O. box for the registered office. A P.O. box alone is not sufficient for a Michigan registered office.
• Missing the February 15 or May 15 filing. Late fees are avoidable, and a missed filing can cause problems with your entity’s good standing.
• Forgetting the city income tax. If your address is in one of the 24 cities that levy one, plan for it in your budget.

Expected Results and Timing

Following these steps in order may help you avoid rework and surprise costs. It cannot guarantee a specific opening date, approval or outcome, because each result depends on your location, your design, the reviewers and your local conditions. Here is what the process generally looks like:

• Entity filing: Review time for routine filings varies. Optional expedited review is available for an additional fee, paid with Form CSCL/CD-272: a 24 hour review of a formation document for $50, same day review for $100, a two hour review for $500 (received by 3 p.m.) and a one hour review for $1,000 (received by 4 p.m.).
• Sales tax registration: may arrive in as little as 7 business days.
• Plan review and health license: depends on the health department’s current workload. Ask for its turnaround estimate when you submit.
• Liquor license: depends on the council or board recommendation and MLCC processing. Plan for this as one of your longest lead times if you need a quota license.

If your concept involves a complicated kitchen, a liquor license, a building with an unclear history or an entity with more than one owner, consult a qualified attorney and a CPA before you sign a lease or a purchase agreement. The Michigan SBDC and the SBA’s Michigan district office can also point you to local counseling at no cost.

Official Resources

• LARA Corporations Division: michigan.gov/lara/bureau-list/cscl/corps
• MiBusiness Registry business search: mibusinessregistry.lara.state.mi.us/search/business
• Michigan Department of Treasury: michigan.gov/taxes
• Michigan Small Business Development Center: michigansbdc.org
• SBA Michigan district office: sba.gov/district/michigan