Unitary Business Groups 2. How does a unitary business group register under the CIT?
The designated member (DM) of a unitary business group must register with the Department for the CIT. “Designated member” means a member of a unitary business group that has nexus with Michigan under MCL 206.621 and that will file the combined return required under MCL 206.691 for the unitary business group. If the member that owns or controls the other members of the unitary business group has nexus with Michigan, then that controlling member must be the designated member. Otherwise, the designated member can be any member of the unitary business group with nexus. The designated member must remain the same every year unless the designated member ceases to be a member of the unitary business group or the controlling member engages in activity in Michigan that subjects that member to nexus.
If the designated member was registered under the MBT and is a C corporation, then it will automatically be registered under the CIT. If the designated member was not registered under the MBT, the designated member must register with the Department using Form 518, Complete Registration Booklet, or online at www.michigan.gov/businesstaxes.
CIT returns must be filed under the designated member’s FEIN. All members of the unitary group must be listed on the group’s annual return.
Estimated payments for a unitary business group under the CIT must be made by the designated member on behalf of the unitary business group. Estimates filed and paid separately by members other than the designated member will be consolidated and applied to the unitary business group by the Department, so long as the combined annual return filed by the designated member includes a complete and accurate schedule of the unitary business group members. Carryforwards generated on separately filed MBT returns will also be consolidated and applied to the CIT unitary business group based on the schedule supplied with the CIT return.