The Michigan Economic Development Corporation agrees, adding that the state also offers:
- Corporate income tax of 6%
- A personal (flat) income tax of 4.25%
- A 6% sales tax but no local sales taxes
With a 2023 State Business Tax Climate Index Score of 5.57, Michigan has the 12th lowest corporate income tax in the nation. It is known for a desirable individual flat rate and no additional local sales taxes imposed.
Another plus? There are plenty of choices when buying a business worth the investment.
Michigan is a lucrative place for business owners with multiple incentives, a skilled workforce, and many accolades.
Michigan Offers Business Owners Incentives
After a business is registered in Michigan, several incentive programs that include loans, funds, grants, and tax credits may be on the table.
Some of these incentive programs include:
- Michigan Development Corporation Renaissance Zone –Eligible business entities are certified as Eligible Next Michigan Business (ENMB) and can benefit from tax exemptions on real property taxes, local corporate income tax, personal property taxes, and utility user’s tax for ten years.
- Brownfield Redevelopment – Promotes “Tax Increment Financing” for environmental and non-environmental activities.
- New Personal Property Tax Exemption – Eligible business entities involved in research and development, manufacturing, wholesale trade, mining, and operations can receive tax abatements on personal property taxes.
Several other incentives include Neighborhood Enterprise Zone, MEDC Business Development Program-BDP, Private Sector Gap Financing Tools, Community Ventures Program, New Markets Tax Credits, Small Business Alternative Credit, and Michigan Pre-Seed Capital Fund , among others, the MEDC says.
To receive help with incentives, fill out the form here or call the MEDC at 888.522.0103.
Michigan Has a Highly Skilled Workforce
Michigan also has no shortage of talent, so running a business here is attractive.
Highly skilled across industries, the workforce in Michigan also benefits from the many programs and resources to meet the talent needs as industries change or grow.
For example, companies can be connected with highly skilled interns in the science, technology, engineering, and math fields through the Michigan STEM Forward program, which also offers financial support to companies that hire them.
A Good Place to Sell: Michigan Ranks High
Michigan offers top opportunities compared to other states. Whether growing a business, starting, or buying one, the state provides great incentives and a lower cost of living.
State-acclaimed recognitions include 2021’s Golden Shovel Award for manufacturing and Area Development’s Silver Shovel Award (8-12 million population) for the last five years running.
Business rankings include:
- #3 in the East North Central Region for Site Selection’s 2022 Prosperity Cup (Site Selection)
- #7 in Site-Readiness Programs (Area Development Top Business States)
- #12 in 2023 State Business Tax Climate Index (Tax Foundation)
- #14 in 2022 Top States for Doing Business (Area Development)
Workforce development rankings include:
- #4 State in East North Central Region for 2022 Workforce Development Rankings (Site Selection)
- #8 in America’s Best Employers for New Grads 2022 (Forbes)
- #8 state for health care jobs (Business Facilities)
Michigan can take a bow for these accolades, as it has earned them.
Its skilled workforce, desirable tax rates, and business-friendly incentives make Michigan a good pick for prospective business owners.
Michigan Business Broker Nadir Jiddou is Here to Help
Whether you invest in an established restaurant, hair salon, franchise, or liquor store, the Michigan Business Broker can help you get started.
Having bought and sold businesses for over 18 years in Michigan, Nadir Jiddou utilizes his contacts and experience to help his clients achieve their objectives quickly.
Call us at (248) 220-3274 or look at the business listings we currently have on hand to see what might be a fit for you.
To find a suitable option, you can either contact us at (248) 220-3274 or browse through our current business listings.