Businesses will still be required to file (at least) one last return under the Michigan Business Tax for the tax year ended December 31, 2011.
2012 brings big changes for businesses when the Corporate Income Tax (CIT) replaces the Michigan Business Tax.
The changes associated with the Corporate Income Tax are evident from the start.
The only businesses that would be required to file a Corporate Income Tax return, would be businesses that are organized as Traditional C-corporations under Federal tax rules.
This means that the following business types would not be required to file a Corporate Income Tax return:
S-corporations
Partnerships
Sole Proprietorships
LLC's taxed as Partnerships
and/or nearly any type of pass-through entity.
Another big change, corporations (other than insurance companies) would be taxed at a flat rate of 6% of corporate net taxable income. With two additional exemptions. First, if your corporation had gross receipts under $350,000 you are not required to file a Corporate Income Tax return. Also, if your Corporate Income Tax liability is less than $100 in a given year, you are not required to file the Corporate Income Tax return for that year.
In my next posting I will cover an interesting twist the State of Michigan has included in the legislation, that may keep the Michigan Business Tax around for a long time...
2012 brings big changes for businesses when the Corporate Income Tax (CIT) replaces the Michigan Business Tax.
The changes associated with the Corporate Income Tax are evident from the start.
The only businesses that would be required to file a Corporate Income Tax return, would be businesses that are organized as Traditional C-corporations under Federal tax rules.
This means that the following business types would not be required to file a Corporate Income Tax return:
S-corporations
Partnerships
Sole Proprietorships
LLC's taxed as Partnerships
and/or nearly any type of pass-through entity.
Another big change, corporations (other than insurance companies) would be taxed at a flat rate of 6% of corporate net taxable income. With two additional exemptions. First, if your corporation had gross receipts under $350,000 you are not required to file a Corporate Income Tax return. Also, if your Corporate Income Tax liability is less than $100 in a given year, you are not required to file the Corporate Income Tax return for that year.
In my next posting I will cover an interesting twist the State of Michigan has included in the legislation, that may keep the Michigan Business Tax around for a long time...
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