How to Start an HVAC Business in Michigan: LARA Mechanical Contractor License

If you want to install furnaces, service air conditioners, or pull permits for heating and cooling work in Michigan, the credential you need is a mechanical contractor license issued through the Michigan Department of Licensing and Regulatory Affairs (LARA). People searching for michigan hvac license or hvac license michigan are usually in the same position: they have trade experience, they want to work for themselves, and they need to know exactly what the state requires. This guide walks through the process in order, from entity setup to the trade license, the tax registrations and the local permits you will pull on every job.

Start with one point: Michigan does not have a general statewide business license. LARA's Corporations Division receives and files the documents that form a business entity, such as an LLC or corporation. Filing those documents is a filing, not a license. Your trade license comes from a different part of LARA, covered below.

What the Michigan HVAC License Covers

Michigan licenses HVAC work through LARA's Bureau of Construction Codes under the Skilled Trades Regulation Act (2016 PA 407). A mechanical contractor license lets you install, alter and service mechanical systems, and pull permits, in the classifications you pass. The classifications include:

• HVAC equipment
• Ductwork
• Hydronic heating and cooling
• Refrigeration
• Limited or unlimited heating service
• Limited or unlimited refrigeration and air conditioning service
• Fuel gas piping
• Fire suppression, and others

You are licensed only for the classifications you qualify for and pass. A shop that plans to do equipment installs, ductwork and gas piping needs each of those classifications, not one general credential. Confirm the current classification list on LARA's Bureau of Construction Codes pages before you plan your exam schedule. The agency's list controls, not this article.

Two related points matter for planning. First, a licensed mechanical contractor is exempt from the builder license for mechanical work only (MCL 339.2403(i)). That exemption covers the mechanical scope, not general construction, so ask LARA which other licenses a mixed job requires. Second, EPA Section 608 refrigerant certification is federal and separate from the state license. If you handle refrigerants, you need it no matter what LARA issues you.

Materials and Information You Need Before You Start

Gather these before you file anything. A missing document at the start usually costs weeks, not dollars.

• Your legal name, Michigan address, and a working email and phone number
• A business name you have checked for availability
• A Michigan resident agent or registered office address, with the agent's consent
• Written work history showing at least 3 years of experience in each classification you plan to test for, with dates, employers and the type of work performed
• Your EPA Section 608 certification, if you work with refrigerants
• A federal Employer Identification Number (EIN) from the IRS, which you will need for payroll and business banking
• A payment method for LARA filing fees and PSI exam fees
• Quotes for general liability and other coverage from an insurance agent who writes contractor policies
• A shared calendar with the renewal and filing dates listed in Step 11

Step-by-Step: Starting an HVAC Business in Michigan

Step 1: Choose your business structure

Most HVAC owners choose among a sole proprietorship, a limited liability company (LLC) and a corporation. A sole proprietorship is the simplest, but it gives no separation between business debts and personal assets. An LLC adds that separation and is the most common choice for small contractors. A corporation works too, but it adds more filings and a different tax path. This is a decision for your attorney and CPA, not a default.

If you form an LLC, you file Articles of Organization (Form CSCL/CD-700) with LARA through the MiBusiness Registry Portal. The filing fee is $50. The yearly filing is an Annual Statement (Form CSCL/CD-2700) with a $25 fee, due February 15 each year beginning the year after formation. An LLC formed or qualified after September 30 does not owe a statement on the February 15 immediately following. A corporation files Articles of Incorporation for Profit Corporation (Form CSCL/CD-500) at $60 and an Annual Report (Form CSCL/CD-2500) at $25, due May 15 each year.

If you operate as a sole proprietor or general partnership under a trade name such as Heating and Cooling Company, you file an assumed name certificate with the clerk of each county where you do business, under MCL 445.1. An LLC or corporation using a trade name files with LARA instead on the Certificate of Assumed Name (Form CSCL/CD-541). The LLC fee is $25 and the corporation fee is $10. The certificate is effective through December 31 of the fifth full calendar year after the year it was filed, and renewal uses Form CSCL/CD-542.

Step 2: Check the name, and optionally reserve it

Search the name on the MiBusiness Registry business search before you file. Under the instructions for Form CSCL/CD-700, the name of a domestic LLC must contain the words Limited Liability Company or the abbreviation L.L.C. or L.C., with or without periods. If you need time to finish paperwork, you can hold a name with Form CSCL/CD-540 for $25. The reservation lasts six months following the month of filing.

Step 3: Appoint a resident agent

Michigan uses the term resident agent for what many other states call a registered agent. Your Articles of Organization must name a resident agent and a registered office. 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 shop address, but a P.O. box alone is not sufficient. Changes are filed on Form CSCL/CD-520.

Step 4: File your formation document

File online through the MiBusiness Registry Portal at https://mibusinessregistry.lara.state.mi.us/. LARA does not publish a guaranteed standard review time for routine filings, so plan for an open-ended wait and time the filing against your bidding and hiring schedule. If you need speed, expedited review is optional and is paid on top of the filing fee, using Form CSCL/CD-272:

Expedited option	Extra fee	Cutoff or timing
24 hour review, formation document	$50	24 hours
Same day review, formation document	$100	Same day
Two hour review	$500	Must be received by 3 p.m.
One hour review	$1,000	Must be received by 4 p.m.

Step 5: Match each classification to your documented experience

This is the step that delays most applicants. Michigan requires at least 3 years of experience in each classification you want. Build a table with one row per classification, listing the years, the employer or your own business, and a reference who can confirm the work. Be honest about gaps. A classification you cannot document is one you should not apply for yet. Ask LARA what evidence it accepts for experience before you assemble the packet, because a rejected application costs you time.

Step 6: Apply for the license and pass the exams

Each classification has its own exam, administered by PSI. You pay the exam fee to PSI, not to LARA. The license application carries an initial fee, but that figure is not settled in this guide. Check the LARA application form for the current amount. LARA has also proposed 2026 rule changes that may affect fees, so check with LARA about those before you set a budget. Confirm with LARA and PSI whether you can schedule exams before or after your application is approved.

Step 7: Get EPA Section 608 certification

EPA Section 608 certification is a federal requirement for technicians who service or dispose of equipment containing refrigerants. It is separate from the LARA license and is not issued by LARA. Get it early. A technician who handles refrigerant without it has a federal compliance problem, whatever state credential is on the wall.

Step 8: Register with the Michigan Department of Treasury

Michigan's state sales tax rate is 6%. If you sell taxable equipment, parts or other goods at retail, you need a sales tax license from the Michigan Department of Treasury. That registration is a free tax registration and can arrive in as little as 7 business days. Register at https://www.michigan.gov/taxes/business-taxes/new-biz/online-business-registration. Whether a given installation, labor charge or parts sale is taxable is a question for Treasury or a CPA, not something to settle from a forum post.

For income tax, a standard LLC is a pass-through entity. Its members report the income on the Michigan individual income tax at the flat 4.25% rate for the 2026 tax year. An LLC that elects federal C corporation treatment is subject to the 6% Michigan Corporate Income Tax. Michigan imposes no franchise tax. Michigan also offers an elective Flow-Through Entity Tax, which a CPA can evaluate for you. Only 24 Michigan cities levy a city income tax, so check whether your city is one of them.

Step 9: Pull local permits and check local rules

A state license does not replace local permits. Permits are local. You pull them for each job at the city, township or county building department that covers the work address. Michigan has 83 counties, roughly 275 to 280 cities, roughly 255 to 258 villages and 1,240 townships, so there is no single statewide permit counter. Your shop or yard also runs into local zoning and certificate of occupancy rules. Check zoning before you sign a lease, and ask the municipality whether storing a van, tools and parts at a particular address is allowed.

Step 10: Set up insurance and payroll

Ask an insurance agent about general liability, commercial auto, and tools and equipment coverage, plus workers' compensation if you hire. Coverage needs vary by job type and by what customers and general contractors require, so get quotes from an agent who writes contractor policies. If you hire employees, confirm your payroll registrations with Treasury and your insurer before the first paycheck.

Step 11: Calendar your recurring deadlines

Set reminders for the LLC Annual Statement every February 15 ($25), the license renewal every three years by August 31 ($300, with a $100 late fee per the LARA renewal page), any assumed name renewal under Form CSCL/CD-542, and your annual tax filings. A missed renewal can lapse your standing, and a single shared calendar keeps one person from owning the deadline alone.

Tips for a Faster Application

• Start the experience documentation first. For most applicants it is the longest part of the process.
• Test only for classifications you will use. Exam fees spent on unused classifications are hard to recover.
• Keep a copy of every filing receipt and confirmation number.
• Run the name search before paying for anything.
• Use the Michigan Small Business Development Center at https://michigansbdc.org/ to work through structure, pricing and cash flow before you sign a shop lease or buy a truck.

Common Mistakes to Avoid

• Assuming an LLC filing gives you a license. It does not. The entity filing and the trade license are separate applications.
• Using a P.O. box as the resident agent's registered office. Michigan requires a physical location.
• Applying for classifications without documented experience for each one.
• Skipping EPA Section 608 certification because the state exam was the priority.
• Bidding or starting work in a classification you do not hold, or starting before the required permit is issued.
• Missing the February 15 Annual Statement or the August 31 renewal because nobody owns the calendar.
• Relying on an old fee figure. Check the LARA application form and the 2026 rule changes before you budget.
• Overlooking a city income tax in one of the 24 cities that levy one.

What to Expect

A well-prepared application may help you move from filing to licensed work with fewer surprises. Timelines depend on your experience records, exam scheduling and LARA's review workload, and none of those are guaranteed. Once licensed in a classification, you may be able to bid and pull permits for that work. Many customers and general contractors ask for proof of license and insurance, so keep copies ready. Results vary by applicant, and no one can promise a specific approval date.

Frequently Asked Questions

Do I need a general business license in Michigan to start an HVAC company?

Michigan has no general statewide business license. You need the trade license for the mechanical work, the entity filing if you form an LLC or corporation, and whatever local permits and tax registrations apply to your operation.

Is forming an LLC the same as getting a license?

No. LARA's Corporations Division files the entity documents. It does not license the business. Ask LARA when the trade license must be in hand before you bid or perform licensed work.

Does a mechanical contractor license cover general construction?

No. A licensed mechanical contractor is exempt from the builder license for mechanical work only (MCL 339.2403(i)). Work outside the mechanical scope may require other licensing, so confirm with LARA before you take it on.

Important Information

This article is informational content, not legal or tax advice. Licensing rules, fees and deadlines change, and where this guide says to check with an agency, confirm the figure there before you rely on it. Talk with a Michigan attorney about entity choice and a CPA about tax treatment before you commit money or sign contracts. Official resources: the MiBusiness Registry at https://mibusinessregistry.lara.state.mi.us/, Michigan Department of Treasury at https://www.michigan.gov/taxes, the Michigan Small Business Development Center at https://michigansbdc.org/, and the U.S. Small Business Administration's Michigan district page at https://www.sba.gov/district/michigan.