State guide · Michigan
Starting a Medical Practice in Michigan
What physicians need to know about Michigan's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Corporation or Professional LLC
LLC permitted
No
CPOM enforcement
Moderate
Top income tax
Verify — flat 4.25% (2024)
Min. franchise tax
None
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Michigan physicians may form a Professional Corporation under MCL §450.221 et seq. or a Professional Limited Liability Company under MCL §450.4901 et seq. All shareholders or members must be licensed Michigan physicians.
Filing is with the Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division.
- •Form a Professional Corporation or Professional LLC
- •All shareholders/members must be licensed Michigan physicians
- •File Articles of Incorporation or Articles of Organization with LARA
- •File Annual Statement with LARA
Corporate Practice of Medicine
Michigan recognizes a moderate Corporate Practice of Medicine doctrine. Fee-splitting is prohibited.
Tax Considerations
Michigan has a flat personal income tax of approximately 4.25% (Verify — temporary cut to 4.05% expired). No franchise tax. Detroit and other cities impose local income taxes.
- •Flat personal income tax: Verify — approximately 4.25%
- •No franchise tax
- •Local city income taxes (Detroit, Grand Rapids, etc.)
- •6% statewide sales tax
- •Pass-Through Entity Tax election available
Michigan Board of Medicine
Michigan does not require entity registration with the Board of Medicine for general practices. Individual physicians are licensed by LARA.
- •No general entity registration required
- •All practicing physicians must hold an active Michigan medical license
Employment Law Considerations
Michigan is moderately complex. Earned Sick Time Act (effective February 2025) mandates paid sick leave for most employers. Non-competes generally enforceable.
- •Earned Sick Time Act: paid sick leave (effective 2025 — verify final rules)
- •Michigan minimum wage adjusts annually
- •Non-competes enforceable if reasonable
- •At-will employment
Official resources
Bookmark these official agency portals for Michigan entity formation, tax registration, and medical board information.
Looking for Michigan licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Michigan.
View Michigan licensing guide →Get the complete practice startup guide
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