The Bailey Blog

Benjamin Franklin reportedly was the first one to say, “The only sure thing in life is death and taxes.” I wonder what he would be saying today about the new Michigan Business Tax and how this once-touted savior of Michigan businesses now has them calling their accountants in a panic. Maybe he’d alter his quote to say, “The only sure thing in life is death and more taxes.”

Crain’s Detroit Business recently reported that a Waterford Township daycare center saw their tax bill increase 324 percent from what it was under the now-defunct Single Business Tax.

According to Crain’s: “Charlie Owens, NFIB-Michigan director, said the MBT’s impact varies among businesses. Some small businesses, for example, benefit from a $350,000 gross-receipts threshold below which they don’t have to pay the MBT; the alternative tax calculation equal to 1.8 percent of adjusted business income; and the fact that tax liability on gross receipts between $350,000 and $700,000 phases in, as compared with the SBT.”

If your head isn’t spinning after reading that paragraph, then you belong among the ranks at Honigman, Miller, Schwartz and Cohn, LLP, sharing desk space with folks like Mark Hilpert.

Now in the interest of full disclosure, Honigman is one of my clients. But put aside my bias and check out what Mark and his colleagues have pulled together in “A Roadmap to Business Success in Michigan.”

The second edition of this book really is a great resource on to how to deal with the MBT and tax incentives available in Michigan for business owners and entrepreneurs looking to become business owners. As the editor, Mark did a great job of trying to turn what can be a maddeningly confusing subject into something a lot more of us can understand.

And, to make it an even sweeter deal, Honigman is offering the book for free. You can download it as a PDF here or you can contact Mark Hilpert at mhilpert@honigman.com for a bound copy.

Remember, Franklin also said, “A penny saved is a penny earned.” Hey, it’s informative, it’s free and you just made your first penny!