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Home > Services > Tax > State & Local Tax > Michigan Single Business Tax
Michigan Single Business Tax
The Michigan Single Business Tax (SBT) is a value added tax, with Federal Net Income as its starting point which is then adjusted for certain add-backs and subtractions. The adjustments include additions for such items as compensation, depreciation, and losses from partnerships. The adjustments also include subtractions for such items as dividends, interest and royalty income, and income from partnerships.
All persons engaged in a business activity are subject to the SBT. Business activity includes sales of real or personal property for consideration, rental of property (including real property, including housing, apartments, etc. and other property), performance of a service for a fee, or any combination of the above.
A "person" includes, but is not limited to, individuals, single member limited liability companies, limited partnerships, partnerships, corporations, joint ventures, etc. The nexus standards for the SBT are generally provided in Revenue Administrative Bulletin 1998-1.
Any person engaged in business activity whose allocated or apportioned gross receipts (with certain adjustments) that exceed the statutory threshold of $350,000.
Solutions Beyond the Basics
Virchow Krause's tax professionals have the experience and resources you need. Our state and local tax services include the Michigan Single Business Tax, Ohio Commercial Activities Tax, and other state-specific taxes that may affect your business.
Advantages for You
The benefits of using our Michigan Single Business Tax services:
- Minimize state and local tax costs.
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