Instructions For Form 4567 - Michigan Business Tax Annual Return (Page 3 of 11) in pdf

on a specific MBT return, will not change until the customer

tax purposes under the internal revenue code shall be classified

specifically makes the change on their Michigan Treasury

as a disregarded entity for the purposes of filing the MBT

Online (MTO) account. Visit michigan.gov/mtobusiness for

annual return. This means that a disregarded entity for federal

more information.

tax purposes, including a single member LLC or Q-Sub, must

file as if it were a sole proprietorship if owned by an individual,

UBGs: In the Name field, enter the name of the DM for the

or a branch or division if owned by another business entity.

standard members of this UBG.

Line 9: Check this box if filing a Michigan UBG return and

Line 3: Enter a brief description of business activity (e.g.,

include a Form 4580 for each member of the UBG included in

forestry, fisheries, mining, construction, manufacturing,

this filing.

transportation, communication, electric, gas, sanitary services,

wholesale trade, retail trade, finance, or services, etc.).

Line 10: Check this box if the taxpayer has sales that are

receipts from transportation services. Taxpayers that check

Line 4: Enter the start date of first business activity in Michigan.

this box also must complete lines 11a, 11b, and 11c. To

Line 5: Enter the entity’s six-digit North American Industry

calculate Michigan Sales from Transportation Services, see the

Classification System (NAICS) code. For a complete list of

instructions for line 11 and the table in the “Sourcing of Sales

six-digit NAICS codes, see the U.S. Census Bureau Web site

to Michigan” section of these instructions.

at , or enter the same NAICS

Line 11: For a Michigan-based taxpayer, all sales are

code used when filing the entity’s U.S. Form 1120, Schedule K;

Michigan sales unless the taxpayer is subject to tax in

U.S. Form 1120S; U.S. Form 1065; or U.S. Form 1040,

another state. A taxpayer will be deemed subject to a tax in

Schedule C.

another state if the taxpayer has due process and commerce

Line 6: Enter the date, if applicable, on which the taxpayer

clause nexus with that state. In that state, the taxpayer must

went out of existence. If the taxpayer is still subject to another

be subject to a business privilege tax, a net income tax, a

tax administered by Treasury, or continues to exist but has

franchise tax measured by net income, a franchise tax for

stopped doing business in Michigan, do not use this line. Also,

the privilege of doing business, a Corporation stock tax, or

do not use this line if the taxpayer is a UBG and one member

a tax of the type imposed under the MBT Act, or that state

has stopped doing business.

has jurisdiction to subject the taxpayer to one or more of such

taxes regardless of whether or not the tax is imposed.

A discontinuance may be processed by updating the account

by using the Michigan Treasury Online (MTO) website. Visit

If no Michigan sales, enter zero.

michigan.gov/mtobusiness for more information.

MBT is based only on business activity apportioned to

Line 7: Use the taxpayer’s Federal Employer Identification

Michigan. A taxpayer that has not established nexus with one

Number (FEIN) or the Michigan Treasury (TR) assigned

other state or a foreign country is subject to MBT on their

number. Be sure to use the same account number on all forms.

entire business activity. Business activity is apportioned to

Michigan based on sales.

If the taxpayer does not have an FEIN or TR number,

the

taxpayer

must

before

filing

this

form.

Sale or Sales means the amounts received by the taxpayer as

Taxpayers

are

encouraged

online

consideration from the following:

Click on the quick link “New

• The transfer of title to, or possession of, property that is

Business” for information on how to obtain a FEIN, which is

stock in trade or other property of a kind which would

required to submit a return through e-file. Taxpayers usually

properly be included in the inventory of the taxpayer if on

can obtain an FEIN from the IRS within 48 hours. Taxpayers

hand at the close of the tax period, or property held by the

registering with the State online usually receive an account

taxpayer primarily for sale to customers in the ordinary

number within seven days.

course of its trade or business. For intangible property, the

Returns received without a registered account number will not

amounts received will be limited to any gain received from

be processed until such time as a number is provided.

the disposition of that property.

• Performance of services which constitute business activities.

NOTE: TR numbers are generally assigned to accounts that

have not acquired an FEIN. Once an FEIN is received, Treasury

• The rental, leasing, licensing, or use of tangible or

will use the FEIN as the account number, if provided. To

intangible property, including interest, that constitutes

change account numbers, a taxpayer should submit Form 163

business activity.

so Treasury can update the records and make sure the account

• Any combination of business activities described above.

numbers are linked.

• For taxpayers not engaged in any other business activities, sales

UBGs: Enter the FEIN or TR Number of the DM for the

include interest, dividends, and other income from investment

standard members of this UBG.

assets and activities and from trading assets and activities.

Line 8: Check the box that describes the DM’s organization

Complete the Apportionment Calculation using amounts for

type. A Trust or a Limited Liability Company (LLC) should

the taxpayer’s business activity only. Do not include amounts

check the appropriate box based on its federal return.

from an interest in a Partnership, S Corporation, or LLC.

NOTE: A person that is a disregarded entity for federal income

Use the information in the “Sourcing of Sales to Michigan”

Instructions For Form 4567 - Michigan Business Tax Annual Return Page 3

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