Wednesday, July 27, 2016

The State of Michigan will be looking over your shoulder when you sell that used car

When you buy a used car in the state of Michigan, and transfer the title, the Sate collects sales tax based on what the buyer writes down.  Until now, Michigan has never really challenged what the car buyer writes down.

This appears to be coming to an end.

 The forms that I have attached below show that Michigan is going to be using a database that will compare the value of your car too the amount that you report in the title transfer.

As you can see, there doesn't appear to be a lot of wiggle room if you purchase a car for less than market value.

You will need to be prepared to explain your bargain purchase.

The State is moving more and more to the guilty until proven innocent policy when it comes to collecting taxes.  This appears to be another simple revenue generater that is mechanical and requires little human intervention.


Doug Zandstra CPA CFE EA
Certified Public Accountant
Certified Fraud Examiner
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503616 970 3000
dougzandstra.com
email doug@dougzandstra.com


Thursday, July 21, 2016

Forms for Setting up your Business in Michigan

Here are some helpful links to the forms that are needed to set up  your Michigan L.L.C. or your Michigan Corporation.  This is not intended to replace the advice of an attorney.

Michigan has 2 basic for-profit, business structures.  L.A.R.A. has some information about them.

1.  L.L.C. 

Michigan LLC Act

  • Michigan LLC registration forms are located <HERE>

2.  Corporation - 

Michigan Corporation Act

  • Michigan Corporation registration forms are <HERE>

3.  Michigan Sales Use and Withholdings Tax

Forms used to registering for Michigan Sales, Use and Withholding Taxes are <HERE>  

4.  Federal Registration 

Forms used to register for your Federal Identification Number are online  <HERE>

5.  S Corporation Elections

Forms that you use to make your S-Corporation Election are online <HERE>

I recommend consulting with an attorney for these matters.


Doug Zandstra CPA CFE EA
Certified Public Accountant
Certified Fraud Examiner
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503616 970 3000
dougzandstra.com
email doug@dougzandstra.com