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Michigan Business Tax
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U48. How does a unitary business group register under the MBT?
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Answer:
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The designated member of a unitary business group must register with the
Department for the MBT. "Designated member" means a member of a unitary business
group that has nexus with Michigan under MCL 208.1200 and that will file the
combined return required under MCL 208.1511 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 SBT, then it will
automatically be registered under the MBT. If the designated member was not
registered under the SBT, the designated member must register with the
Department using Form 518, Complete Registration Booklet, or online at
www.michigan.gov/businesstaxes.
MBT 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 MBT 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 SBT returns will also be
consolidated and applied to the MBT unitary business group based on the schedule
supplied with the MBT return.
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