Michigan. Known as both the cereal and car capitals of the world. The wolverine-less Wolverine State. Land of 11,000 lakes.
Michigan is also a healthy state in which to register your small escort business, and in this article you'll find clear step-by-step advice on how to do just that. For more information on why it's vitally important to register your business, refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
Download a 65-page guide on starting your own business in Michigan from Michigan.Gov.
For some helpful advice on picking out a business name, visit Business.gov
Step four: Register your business / business name
Sole Proprietorship:
In Michigan you are not required to register your sole proprietorship escort business as a separate business entity: because the business is you, it is not recognized as a separate business and you’ll file your business information along with your own personal taxes.
You are also not required to register your business name if it is your name and service: "Jane Doe's Escort Service". However, if you take on any other form of
a DBA name, you must register an Assumed Name Certificate with your county. You can find your county's contact information at Michigan.Gov » Michigan Counties List.
For more information on if taking on a DBA is a good choice for your business, refer to our article Do I want to be a sole proprietor?
Partnership:
In Michigan you are not required to register your general partnership business as a separate business entity. However, you should draft a partnership agreement and will have to pay business taxes along with your own return come tax time, so having your books in order is very important. More on that below.
You are also not obligated to register your business name in Michigan if it is the collected names of the partners outlined in your partnership agreement. But if you choose to take on a DBA name you must register an Assumed Name Certificate with your county. You can find your county's contact information at Michigan.Gov » Michigan Counties List.
Corporation:
To register your escort corporation in Michigan you'll need to file your Articles of Incorporation (form 500) with the Michigan Department of Energy, Labor and Economic Growth. Download form 500 from Michigan.Gov. There is a sliding fee for this form, depending on the number of shares of your business. Also, refer to your business lawyer as to if it's more applicable for you to fill out an Articles of Incorporation – Professional Services form instead.
Registering your Articles of Incorporation will register your business name, so you will not have to file any additional paperwork for this.
LLC:
To register your escort LLC in Michigan, you'll need to file your Certificate of Organization (form 700) with the Michigan Department of Energy, Labor and Economic Growth. You can find more information, instructions and download form 700 at Michigan.Gov. There is a $50 filing fee for this form and it contains basic information about the management and business information of your LLC.
Registering your Certificate of Organization will register your business name, so you will not have to file any additional paperwork.
Step six: Register for your federal and Michigan state taxes
There are a few basic types of taxes small businesses in Michigan may register for.
- Individual Income Tax: If you're a sole proprietor or LLC, you'll file your business profits/losses in a Schedule EZ form that will go along with your personal income tax 1040 form. For more information go to IRS.gov. You can also find more forms and information at the Iowa Department of Revenue—Individual Income Tax Forms. You can also get information particular to Michigan at Michigan.Gov/Taxes.
- Business Taxes: Businesses in Michigan have to pay corporate taxes. You can find detailed information on what taxes you'll have to pay depending on your business model and register online at the Michigan Department of the Treasury.
- Unemployment Insurance: All businesses with employees pay unemployment insurance to safeguard the state's unemployed. You can get more information and file online at Michigan Unemployment Insurance Agency. You may also have to pay this at the federal level.
- Withholding Taxes: Employers must withhold taxes from employees for their personal income taxes. More information can be found about withholding taxes in Michigan at the Michigan Department of the Treasury.
- Workers Compensation: If you have employees, you'll have to pay Workers' Compensation. More information can be found at the Michigan Workers' Compensation Agency.
- Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you'll need to file your own self-employment taxes for social security and Medicaid. This is particularly true for sole proprietorships, general partnerships and LLCs. You can find this Schedule C / 1040 form and get more information at IRS.gov.
You can find out which taxes you'll need to pay and register to pay many of these taxes online at Michigan.Gov.
Step seven: Get necessary licenses and permits
There's no specific "escort license" in Michigan, and chances are you won't need any other permits to conduct your escort service, but it's a good idea to run your city through the IRS's Permit Me tool and get more information about specific filing from their site. You may also want to visit Michigan Licensing Division
For more information about registering an escort business in Michigan, consider the following online destinations:
Find out how to register an escort business in each state of the USA.
Related resources:
Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
