Michigan · Flat income tax, city income taxes
CPA, bookkeeping & fractional CFO services in Michigan
Michigan has a flat personal income tax, a corporate income tax for C corporations and city income taxes in Detroit, Grand Rapids and many other cities. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Michigan businesses remotely.
- Serving all of Michigan remotely
- Michigan CIT and city income tax returns tracked for you
- Monthly reporting included
In short
Which Michigan cities have an income tax?
About two dozen Michigan cities, including Detroit, Grand Rapids, Lansing and Flint, levy their own income tax on residents, people who work in the city and business profits earned there. Detroit has the highest city rate. Businesses with workers in these cities also need to withhold city tax correctly.
- State income tax
- Flat rate
- State sales tax
- 6%
- Key business tax
- Corporate income tax, city income taxes
- How we serve
- Remotely, statewide
Services in Michigan
What we do for Michigan business owners
From Detroit auto suppliers and Ann Arbor tech startups to Grand Rapids manufacturers and northern Michigan tourism businesses, Michigan owners need state and city taxes handled together. We provide monthly bookkeeping, federal and Michigan tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Michigan sales and use tax tracking
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Michigan flow-through entity tax review
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Michigan CIT, flow-through entity and city returns
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Michigan tax planning
Planning around Michigan taxes
Michigan planning looks at the flat state rate, the flow-through entity tax, city income taxes and federal planning.
Book a 15-min callFlow-through entity tax
Michigan offers an elective flow-through entity tax that can create a federal benefit. We model it each year.
City income taxes
We file city returns for businesses in Detroit, Grand Rapids and other taxing cities and review payroll withholding.
Manufacturing credits
Suppliers may benefit from federal research and equipment incentives. We review eligibility.
Who we work with
Michigan industries we serve
We work with owner-led businesses across Michigan, with experience in the industries that drive the state economy.
Automotive suppliers
Job costing, tooling and inventory.
Manufacturing
Equipment-heavy books and depreciation planning.
Healthcare practices
Medical and dental practices across Michigan.
Tourism and hospitality
Seasonal businesses up north and along the lakes.
E-commerce sellers
Online brands with Michigan sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Michigan businesses choose CPA Torrance
Areas we cover
Serving businesses across Michigan
Businesses in Detroit, Grand Rapids, Ann Arbor, Lansing, Troy work in automotive, manufacturing, healthcare, agriculture and technology. CPA Torrance helps Michigan businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Detroit
- Grand Rapids
- Ann Arbor
- Lansing
- Troy
- Southfield
- Kalamazoo
- Flint
- Dearborn
- Traverse City
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Michigan business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Michigan businesses?
We provide monthly bookkeeping, federal and Michigan tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
What is the Michigan flow-through entity tax?
It is an elective tax that lets partnerships and S corporations pay Michigan tax at the entity level, which may let owners deduct it federally. We model it before electing.
Do Michigan S corporations pay state tax?
S corporation income generally flows to owners, who pay personal income tax. Some cities also tax the business profits.
Does Michigan have a franchise tax?
Michigan does not have a separate franchise tax like some states. C corporations pay the corporate income tax.
Can CPA Torrance work with Michigan businesses remotely?
Yes. We serve businesses across Michigan, including Detroit, Grand Rapids, Ann Arbor, Lansing, Troy, Southfield, Kalamazoo, Flint, Dearborn and Traverse City, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Michigan business.
Get your Michigan books and taxes in order.
Book a call to review bookkeeping and tax planning for your Michigan business.