Existing Business: Best Practices

Stay vigilant with your tax obligations and licensing requirements to ensure your business meets local and federal standards efficiently.

Stay on top of Tax Requirements

Understand your tax obligations:

  • Federal income tax
  • Michigan state income tax
  • city taxes (e.g., restaurant tax, hotel occupancy tax)
  • Sales and use tax
  • Payroll taxes

Set up a system for tracking income, expenses, and tax-related documents:

  • Consider using accounting software or hiring a bookkeeper
  • Keep all receipts and financial records organized

Mark important tax deadlines on your calendar:

  • Quarterly estimated tax payments
  • Annual tax return filing dates
  • W-2 and 1099 form submission deadlines

Stay informed about tax law changes:

  • Subscribe to IRS and Michigan Department of Revenue newsletters
  • Consult with a tax professional regularly

File and pay taxes on time:

  • Submit all required forms accurately and by their due dates
  • Pay any owed taxes promptly to avoid penalties and interest

Consider working with a local tax professional:

  • They can help ensure compliance with all applicable tax laws
  • They can assist with tax planning strategies specific to businesses

Renew and Maintain Licenses and Registrations

Create a comprehensive list of all licenses and permits:

  • Business license
  • Professional or occupational licenses
  • Health permits (for food-related businesses)
  • Liquor licenses (if applicable)
  • Special use permits
  • Signage permits

Develop a renewal calendar:

  • Note expiration dates for each license and permit
  • Set reminders several months in advance of each renewal deadline

Stay informed about renewal requirements:

  • Check the City website regularly for updates
  • Subscribe to relevant department newsletters (e.g., Health Department, Fire Department)

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