How to Start a Home Inspection Business in Michigan: Why the State Does Not License You

If you searched for a Michigan home inspector license, you probably expected an exam, a license number and a renewal date. Michigan has none of those for private home inspectors. The state does not run a home inspector licensing program, and it does not require an exam, education hours or a bond before you inspect a house for pay. That keeps the start-up paperwork short. It also means your clients rely on your insurance, your contracts and your work, not on a state credential.

This guide covers what Michigan does and does not require, the business steps you still need to complete, and the mistakes that cost new inspectors time and money. This is informational content, not legal or tax advice.

Is there a home inspection license in Michigan?

No. LARA, the Michigan Department of Licensing and Regulatory Affairs, runs no home inspector licensing program. Anyone may perform home inspections in Michigan. You do not need a state exam, a required number of education hours or a surety bond to start.

Michigan also has no general statewide business license. LARA's Corporations Division receives, reviews and files the documents that form and maintain a business entity. It does not license businesses. When you register an LLC on the MiBusiness Registry, you are making a filing, not earning a license. Michigan licenses by trade or activity, so the agency that matters depends on the work you do. For most home inspection businesses, that means there is no state license to apply for.

The Stille-DeRossett-Hale registration is a different thing

You will see the Stille-DeRossett-Hale Single State Construction Code (1972 PA 230) in search results for this topic. LARA registers building and plan-review code officials under that act. These are government code officials, not private inspectors. A code registration does not authorize you to run a home inspection company, and you should not read it as a state requirement for private inspectors.

If you want written confirmation for your own records, ask LARA's Bureau of Construction Codes whether any state license applies to private home inspections. Save the reply with your business papers. A written answer is worth more than a forum post or a sales page.

Why the Michigan home inspection license search leads to courses and badges

Three things cause most of the confusion. The first is the code official registration described above. The second is certification. InterNACHI and ASHI both offer voluntary certification for home inspectors, and many inspectors list it on their websites and reports. Certification can work as a credential that buyers and real estate agents recognize, but it is not a state license, and Michigan does not require it. The third is local rules. Cities, villages and townships set their own requirements for business activity and building matters, so a clerk or building department may send you a permit or zoning question even though the state does not license you.

If a website sells a "Michigan home inspection license" course or package, read the fine print. It is describing a voluntary certification, a training program or a local requirement, not a state license. Ask which agency issues the credential. If the answer is vague, walk away.

Materials and information you need before you file

You do not need much to start, but gather these items before you open the state portal:

• Your full legal name, home address and a Michigan address for the registered office
• A resident agent who meets Michigan's requirements (covered in step 4)
• Access to the MiBusiness Registry Portal (MiBRP) at mibusinessregistry.lara.state.mi.us
• Your chosen business name, checked on the MiBusiness Registry business search
• A budget of $50 for Articles of Organization, plus $25 if you want to reserve a name first
• Your county clerk's assumed name requirements, if you will operate under a trade name as a sole proprietor
• Written quotes for general liability and errors and omissions insurance
• Contact details for your city, village or township zoning office, especially if you will work from home
• A sample inspection agreement, report template and scope of inspection, reviewed by a Michigan attorney
• A conversation with a Michigan CPA about entity choice and tax setup

Step-by-step: forming and running your inspection business

1. Get the license answer in writing. Contact LARA's Bureau of Construction Codes and ask the question directly. Note the date, the person you spoke with and the reply. This takes minutes and protects you if a client, lender or competitor questions your credentials later.
2. Choose your structure. A sole proprietorship is the simplest option, and you can operate under your own name with no entity filing. An LLC adds separation between you and the business, which can matter if a client sues over an inspection. A standard LLC is a pass-through entity, so members report the income on their Michigan individual income tax, which is a flat 4.25% for the 2026 tax year. Michigan has no franchise tax. A corporation is also possible. It files Articles of Incorporation for Profit Corporation (Form CSCL/CD-500) for $60, and it pays the 6% Michigan Corporate Income Tax if it is taxed as a C corporation. Make this choice with your CPA and attorney, not on fees alone.
3. Check and reserve your name. A domestic LLC name must contain "Limited Liability Company," "L.L.C." or "L.C.," with or without periods, according to the Form CSCL/CD-700 instructions. Search the registry first. If you need time, reserve the name with Form CSCL/CD-540 for $25. The reservation lasts six months following the month you file it.
4. Appoint a resident agent. Michigan calls this a resident agent, and it must appear in your Articles of Organization. The agent must be a Michigan resident, a Michigan corporation, a foreign corporation with a certificate of authority to transact business in Michigan, a Michigan LLC, or a foreign LLC authorized to transact business in Michigan. The registered office is the agent's physical location. It can match your business address, but a P.O. box alone is not sufficient. Changes are filed on Form CSCL/CD-520.
5. File the Articles of Organization. File Form CSCL/CD-700 through the MiBusiness Registry Portal. The filing fee is $50. LARA does not publish a guaranteed standard review time for routine filings, so plan for a wait you cannot control. If you need speed, expedited review is available on top of the filing fee: $50 for 24-hour review of a formation document, $100 for same-day review, $500 for two-hour review (received by 3 p.m.), and $1,000 for one-hour review (received by 4 p.m.).
6. Register an assumed name if you need one. If you will operate under a name other than your legal name or your LLC name, you need an assumed name filing. Sole proprietors and general partnerships file with the clerk of each county where they do business, under MCL 445.1. County fees are set by statute and by each county clerk, so confirm the amount with your clerk. LLCs, corporations and limited partnerships file a Certificate of Assumed Name (Form CSCL/CD-541) with LARA. For an LLC that costs $25, and for a corporation or limited partnership it costs $10. The certificate runs through December 31 of the fifth full calendar year after the year it was filed.

7. Set up insurance before your first inspection. Michigan leaves the coverage to you. Most inspectors carry general liability and errors and omissions insurance. Get written quotes from two or three agents, compare what each policy excludes, and ask whether your lender, brokerage or clients will require specific limits. Do not treat the LLC as insurance. An entity can separate some personal assets from business claims, but it does not replace coverage for your inspection work.
8. Clear local rules. Michigan has 83 counties, about 275 to 280 cities, about 255 to 258 villages and 1,240 townships. Any of them may require a local business license, a home occupation permit or zoning approval, and some require a certificate of occupancy for specific uses. Call your city, village or township clerk and its zoning office. Ask whether a home office is allowed in your zone and whether client visits or signage trigger a rule. Also ask whether your city is one of the 24 cities that levy a city income tax.
9. Register for the taxes that apply. Confirm with the Michigan Department of Treasury whether any product or service you offer is subject to the 6% state sales tax. If you will sell taxable items, register for a sales tax license through Treasury's online business registration. That registration is free and can arrive in as little as 7 business days. Whether an inspection fee itself is taxable is a question for Treasury or your CPA, not a guess to make on your own. Then set up income tax payments as your CPA advises.
10. Calendar the recurring filings. An LLC files an Annual Statement for $25 each year, due February 15. An LLC formed or qualified after September 30 does not owe the statement on the February 15 immediately following. If you form your LLC on October 22, 2026, your first annual statement is due February 15, 2028. A corporation files an Annual Report for $25, due May 15, and late fees rise on a published schedule. Renew your assumed name certificate before it expires.
11. Consider voluntary certification. InterNACHI and ASHI certification is optional. It does not replace insurance, contracts or any state filing, but it may help you win clients who want a recognized credential. Compare training requirements and costs directly with each organization before you enroll.
12. Know the lead paint rule. Most home inspections do not disturb paint. If your work does disturb paint in homes built before 1978, the federal EPA lead rule can apply. Ask a qualified professional how it affects your scope before you take those jobs.

Common mistakes to avoid

• Paying for a state license that does not exist. Ask the seller which agency issues the credential and under what statute. If they cannot name one, it is not a Michigan state license.
• Treating the LLC filing as your permit to operate. The filing creates an entity. It does not give you insurance, a signed client contract or local approval.
• Using a P.O. box as the registered office. A P.O. box alone is not sufficient for Michigan's registered office.
• Operating under a trade name without the assumed name filing. Sole proprietors file with the county clerk. LLCs file with LARA.
• Skipping the home office rules. A zoning question caught early costs far less than a neighbor complaint or a stop order.
• Forgetting the February 15 statement. A missed LLC annual statement can create a compliance problem with LARA that is easy to avoid.
• Using a weak inspection agreement. Your contract defines scope, limits and how clients receive the report. Have a Michigan attorney review it before your first job.
• Buying the cheapest insurance without reading the exclusions. A low premium can leave gaps you only discover after a claim.

What to expect after you file

Once your filings are accepted and your insurance is in place, you can start booking inspections under your business name. A few steps may take longer than you planned. LARA's review time is not guaranteed, so a filing may take days or longer unless you pay for expedited review. Local zoning answers can take a phone call or a formal written request. Your first LLC annual statement may not be due for more than a year if you form this fall.

Results depend on your local market, your training, your insurance and how well you deliver your reports. A clean, correct setup may help you avoid paperwork problems and may make it easier for clients, lenders and agents to trust your business. It does not guarantee bookings or income. Treat your first year as a test of your processes, and review your filings, insurance and contracts once a year with your CPA or attorney.

Where to get help

Start with LARA's Corporations Division page at michigan.gov/lara/bureau-list/cscl/corps for entity forms and filing details. For tax questions, go to the Michigan Department of Treasury. The Michigan Small Business Development Center and the SBA's Michigan district page can point you to advisers who help with business planning.

Disclaimer: This article is informational content about Michigan business formation. It is not legal or tax advice. Rules, fees and agency processes change, so confirm current figures on the agency pages before you file. For entity choice, insurance, contracts and tax treatment, talk with a qualified Michigan attorney and a CPA.