You are self-employed if you operate a trade, business, or profession, either by yourself or as a partner. To learn more about your obligations, refer to the Being Self-Employed section . As a sole proprietor or a general partner, the owner pays taxes on the income from the business on a personal income tax return with the state and federal governments. You will also file an additional schedule that identifies income and expenses of the business. Partners file a partnership return in addition to the personal income tax return which distributes profits and losses between the partners according to the partnership agreement.
Corporations pay taxes on the business income at corporate tax rates.
Most businesses are also required to make Estimated Tax payments on a quarterly basis for Michigan income tax, federal income tax and self-employment tax. Michigan income tax estimate information can be accessed online. In Michigan, it is easy to register for taxes. This form allows a business to register for sales, use or withholding taxes, the single business tax, motor fuel or tobacco products tax. Questions and answers about registering a business can also be accessed online.