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Selling or Closing Your Business

There are several steps you must take when you sell or close a business.

You must notify the Registration Section of the Michigan Department of Treasury by completing a Form 163 Notice of Change or Discontinuance. Mail Form 163 to:

Michigan Department of Treasury
Registration Section
P.O. Box 30778
Lansing, MI 48909-8278

The seller should request a Tax Clearance Certificate to verify that all taxes have been paid. For more information about requesting a Tax Clearance Certificate, see below.

You must pay any delinquent taxes due to the Department of Treasury. When making payment, submit a letter identifying the business name, address, Federal Employer Identification Number (FEIN), type of tax being paid and the period(s) the tax was due. Payment should include tax, penalty and interest owed. Contact the specific tax division for help calculating penalty and interest.

Delinquent Tax Debts - The Department of Treasury and the Unemployment Insurance Agency (UIA) may both file tax liens against any taxpayer's real and personal property and issue a tax warrant or levy to seize and sell the property to satisfy a delinquent tax debt. Corporate officers may also be held liable for Treasury tax debts incurred by their corporations.

If your business is covered under the Michigan Employment Securities Act, you must complete the Business Transferor's Notice to Transferee of Unemployment Tax Liability and Rate, form UIA 1027 and deliver the completed form to the purchaser of the business at least two business days before the transfer of the business. This obligation extends to the seller's real estate broker, other agent or attorney. For more information regarding Unemployment Tax obligations, visit the Unemployment Insurance Agency website at