Selling at and running markets in Michigan.
In Michigan, vendors who sell goods need a sales tax license from the Michigan Department of Treasury, or can use the concessionaire's return if they sell at only one or two events a year. Homemade shelf-stable foods fall under the Michigan Department of Agriculture and Rural Development's cottage food exemption, while temporary food licenses are issued by local health departments.
Updated
Sales tax.
Michigan sales tax license or Concessionaire's Sales Tax Return (Form 5089)
Retailers collect 6% sales tax, and Michigan has no city, local or county sales tax. Vendors at more than two events a year must hold a sales tax license, registered online through Michigan Treasury Online or on Form 518. Sellers may begin selling before the license arrives but must remit tax from their first sale.
- Who
- Vendors
- From
- Michigan Department of Treasury
- When
- Anyone selling tangible goods to final consumers, including at events. Vendors at only one or two Michigan events a year can use Form 5089 instead of a license.
- Fee
- No fee for a sales tax license
Selling homemade food (cottage food).
At a glance: no registration or permit, sales up to $50,000 a year. Compare all 50 states.
Cottage food exemption
Cottage food operations are exempt from MDARD licensing and routine inspection, but must follow the Food Law's labeling and other provisions and local rules. Annual gross sales are capped at $50,000, or $75,000 if products sell for $250 or more per unit, sales records must be kept for inspectors, and products may be sold or delivered only within Michigan. Canned, acidified and pickled foods and foods that need refrigeration do not qualify.
- Who
- Vendors
- From
- Michigan Department of Agriculture and Rural Development (MDARD)
- When
- Making non-potentially hazardous foods such as baked goods, jams and jellies in the kitchen of your primary residence for direct sale to customers, including at farmers markets and craft shows.
Temporary food permits.
Temporary food establishment license (issued by local health departments)
MDARD says food service establishments, including temporary food establishments and transitory food units, are licensed by local health departments rather than MDARD. Vendors who travel to many events may use a transitory food unit license instead of a license for each event.
- Who
- Vendors
- From
- Local health department; MDARD sets licensing rules
- When
- A food establishment at a fixed location for a temporary period of no more than 14 consecutive days, such as a festival or fair concession.
- Timing
- Applications for temporary licenses must be submitted 4 days prior to the event
Farmers markets and produce.
Farmers market food licensing
Vendors with an existing Michigan food establishment license can operate under it at a market, but on-site meal preparation, food processing, non-prepackaged retail food and out-of-state food establishments need a license. Sampling is exempt from licensing if MDARD sampling guidelines are followed, and home-prepared food may be sold only under the cottage food rules.
- Who
- Vendors
- From
- Michigan Department of Agriculture and Rural Development (MDARD)
- When
- Selling or preparing food at a farmers market.
Business registration.
Business formation and state licenses (no licenses issued by the Corporations Division)
The Michigan Business Roadmap says the Corporations Division does not issue licenses and points new businesses to the state license search to see whether a state license is needed, and to county and local offices for local licensing or permits.
- Who
- Organizer and vendors
- From
- Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division
- When
- Forming a business entity in Michigan.
City and county permits in Michigan.
Event permits, vendor licenses and food permits are mostly local. Pick your city or county:
Collect the paperwork with each application.
Ask vendors for their sales tax registration, cottage food registration or food permit and insurance certificate as required documents on your application form, and check them before you approve anyone.
Where the sources are unclear.
- No official Michigan page read states a duty on event promoters regarding vendors' sales tax licenses, so promoterDuty is omitted.
- The MDARD fee schedule lists a Temporary Food Establishment license fee of $73 and a Transitory Food Unit fee of $159, but temporary licenses are issued by local health departments, whose fees can differ (the Detroit Health Department charges $250); confirm the fee with the local health department.
- The cottage food sales cap reflects the 2026 update described on the MDARD Getting Started and FAQ page; the cottage food overview page still links to the cap without stating a figure.
- Fire marshal tent rules, raffles and alcohol at events were not researched; ask the Michigan Bureau of Fire Services and the Michigan Liquor Control Commission.
Common questions.
Do I need a sales tax permit to sell at a craft fair in Michigan?
Michigan sales tax license or Concessionaire's Sales Tax Return (Form 5089) (Michigan Department of Treasury): Retailers collect 6% sales tax, and Michigan has no city, local or county sales tax. Vendors at more than two events a year must hold a sales tax license, registered online through Michigan Treasury Online or on Form 518. Sellers may begin selling before the license arrives but must remit tax from their first sale.
Can I sell homemade food at a farmers market in Michigan?
Cottage food exemption (Michigan Department of Agriculture and Rural Development (MDARD)): Cottage food operations are exempt from MDARD licensing and routine inspection, but must follow the Food Law's labeling and other provisions and local rules. Annual gross sales are capped at $50,000, or $75,000 if products sell for $250 or more per unit, sales records must be kept for inspectors, and products may be sold or delivered only within Michigan. Canned, acidified and pickled foods and foods that need refrigeration do not qualify.
Who issues temporary food permits for events in Michigan?
Temporary food establishment license (issued by local health departments) (Local health department; MDARD sets licensing rules): MDARD says food service establishments, including temporary food establishments and transitory food units, are licensed by local health departments rather than MDARD. Vendors who travel to many events may use a transitory food unit license instead of a license for each event.
Do I need a state business license to be a vendor in Michigan?
Business formation and state licenses (no licenses issued by the Corporations Division) (Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division): The Michigan Business Roadmap says the Corporations Division does not issue licenses and points new businesses to the state license search to see whether a state license is needed, and to county and local offices for local licensing or permits.
Sources.
This page summarizes official state sources and isn't legal or tax advice. Rules and fees change; confirm with each agency.
Every fact on this page comes from these official pages, checked on 2026-10-11. Details change; tell us at hello@bzar.app if something here is out of date.
- https://www.michigan.gov/taxes/business-taxes/sales-use-tax/information/sales-tax-license-faq
- https://www.michigan.gov/mdard/food-dairy/cottage-food
- https://www.michigan.gov/mdard/food-dairy/cottage-food/getting-started-faq
- https://www.michigan.gov/mdard/food-dairy/cottage-food/what-can-i-make
- https://www.michigan.gov/mdard/licensing/food/service
- https://www.michigan.gov/mdard/licensing/food/food-establishment-license/fees-and-schedule
- https://www.michigan.gov/mdard/licensing/food/farmers-market-licensing-guide
- https://www.michigan.gov/mdard/food-dairy/farmersmarket
- https://www.michigan.gov/lara/bureau-list/cscl/corps/michigan-business-roadmap
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