Michigan Business Startup Guides

Opening a Business in Ann Arbor, Michigan

Contemplating starting a business in Ann Arbor, Michigan? We walk you through the process of opening a business in Ann Arbor.

Is Becoming a Business Owner Right for You?

Before you get too far along in the process, consider your entrepreneurial instincts and capabilities.

While entrepreneurship has become a popular career choice, we recommend you do the following before you take the plunge:

  • Talk to other entrepreneurs in Ann Arbor. Get their take on what it's really like to be an entrepreneur.
  • We recommend reading Should You Become an Entrepreneur?. For aspiring new entrepreneurs, it's a must read article.
  • Have a candid conversation with friends and family. That's the best way to get a truly objective assessment as to whether others think you have what it takes.

Ann Arbor, Michigan Demographic Information

Ann Arbor has an active business community that includes small businesses, mid-sized businesses and large businesses.

To give you a better feel for Ann Arbor demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Ann Arbor.

Business Size
# of
Businesses
1-4 Employees
7154
5-9 Employees
2807
10-19 Employees
2139
20-49 Employees
1536
50-99 Employees
633
100-249 Employees
303
250-499 Employees
87
500-999 Employees
21
1000+ Employees
15
All Ann Arbor Businesses
14695

As a new Ann Arbor entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Ann Arbor for each business category. By looking at this chart, you can get a general sense for how much competition there is in the business niche that you are pursuing.

Business Type
# of
Businesses
Advertising Agencies
12
Ambulance Services
1
Amusement Arcades
2
Architectural Services
45
Art Dealers
6
Automobile Driving Schools
2
Automotive Exhaust System Repair
3
Automotive Glass Replacement Shops
3
Automotive Parts and Accessories Stores
13
Automotive Transmission Repair
2
Ball and Roller Bearing Manufacturing
2
Barber Shops
1
Beauty Salons
56
Bed-and-Breakfast Inns
1
Beer and Ale Merchant Wholesalers
3
Beer, Wine, and Liquor Stores
12
Blood and Organ Banks
2
Book Stores
18
Books Printing
5
Bowling Centers
2
Breweries
1
Building Inspection Services
2
Business Associations
9
Cable and Other Program Distribution
3
Camera and Photographic Supplies Stores
3
Car Washes
11
Carpet and Upholstery Cleaning Services
8
Caterers
13
Cemeteries and Crematories
2
Child and Youth Services
10
Child Day Care Services
68
Civic and Social Organizations
27
Claims Adjusting
1
Clothing Accessories Stores
6
Coin-Operated Laundries and Drycleaners
3
Collection Agencies
3
Commercial Bakeries
1
Commercial Lithographic Printing
14
Commercial Screen Printing
2
Commodity Contracts Brokerage
1
Community Food Services
1
Computer and Software Stores
14
Computer Facilities Management Services
5
Computer Systems Design Services
54
Computer Training
6
Confectionery and Nut Stores
4
Confectionery Merchant Wholesalers
1
Construction Sand and Gravel Mining
1
Consumer Lending
6
Continuing Care Retirement Communities
1
Convenience Stores
14
Convention and Trade Show Organizers
3
Couriers
6
Court Reporting and Stenotype Services
1
Creamery Butter Manufacturing
1
Credit Unions
9
Curtain and Drapery Mills
1
Custom Computer Programming Services
84
Dance Companies
1
Diagnostic Imaging Centers
5
Diet and Weight Reducing Centers
5
Direct Life Insurance Carriers
3
Direct Mail Advertising
3
Direct Title Insurance Carriers
3
Directory and Mailing List Publishers
4
Discount Department Stores
3
Document Preparation Services
6
Drinking Places (Alcoholic Beverages)
14
Drywall and Insulation Contractors
6
Educational Support Services
4
Electric Power Distribution
11
Electrical Contractors
21
Electronic Computer Manufacturing
4
Elementary and Secondary Schools
13
Emergency and Other Relief Services
1
Employment Placement Agencies
10
Engineering Services
76
Environmental Consulting Services
8
Exam Preparation and Tutoring
6
Facilities Support Services
4
Family Planning Centers
3
Farm Supplies Merchant Wholesalers
2
Fiber Optic Cable Manufacturing
1
Fine Arts Schools
13
Finfish Fishing
1
Finish Carpentry Contractors
9
Fish and Seafood Markets
1
Flight Training
1
Floor Covering Stores
10
Flooring Contractors
4
Florists
10
Flour Milling
1
Food (Health) Supplement Stores
5
Food Service Contractors
20
Footwear Merchant Wholesalers
1
Formal Wear and Costume Rental
1
Framing Contractors
7
Freight Transportation Arrangement
2
Fruit and Vegetable Markets
4
Full-Service Restaurants
158
Funeral Homes and Funeral Services
2
Furniture Stores
22
General Automotive Repair
25
General Freight Trucking, Local
4
General Medical and Surgical Hospitals
3
General Rental Centers
2
General Warehousing and Storage
8
Gift, Novelty, and Souvenir Stores
26
Golf Courses and Country Clubs
10
Grantmaking Foundations
7
Graphic Design Services
21
Hand and Edge Tool Manufacturing
1
Hardware Merchant Wholesalers
1
Hardware Stores
7
Hazardous Waste Treatment and Disposal
1
Hobby, Toy, and Game Stores
9
Home Centers
2
Home Furnishing Merchant Wholesalers
3
Home Health Care Services
20
Home Health Equipment Rental
2
Homes for the Elderly
8
Household Appliance Stores
7
Industrial Building Construction
4
Industrial Design Services
4
Industrial Gas Manufacturing
1
Industrial Launderers
1
Insurance Agencies and Brokerages
76
Interior Design Services
12
Internet Publishing and Broadcasting
3
Investment Advice
15
Janitorial Services
28
Jewelry Stores
25
Land Subdivision
6
Landscape Architectural Services
11
Landscaping Services
45
Language Schools
4
Libraries and Archives
1
Limited-Service Restaurants
110
Limousine Service
2
Local Messengers and Local Delivery
3
Locksmiths
2
Luggage and Leather Goods Stores
2
Machine Shops
12
Marketing Consulting Services
37
Masonry Contractors
6
Materials Recovery Facilities
1
Meat Markets
4
Media Buying Agencies
2
Media Representatives
3
Medical Laboratories
4
Metal Stamping
1
Miscellaneous Intermediation
8
Mobile Food Services
1
Mortgage and Nonmortgage Loan Brokers
11
Motion Picture and Video Production
10
Motor Vehicle Metal Stamping
2
Motor Vehicle Towing
1
Museums
3
Music Publishers
1
Musical Groups and Artists
6
Musical Instrument and Supplies Stores
5
Musical Instrument Manufacturing
2
Nail Salons
2
Natural Gas Distribution
3
New Car Dealers
13
New Housing Operative Builders
11
News Dealers and Newsstands
2
Newspaper Publishers
3
Nonresidential Property Managers
14
Nursing Care Facilities
5
Office Administrative Services
32
Office Supplies and Stationery Stores
9
Offices of Bank Holding Companies
4
Offices of Certified Public Accountants
46
Offices of Chiropractors
21
Offices of Dentists
108
Offices of Lawyers
137
Offices of Optometrists
7
Offices of Podiatrists
6
Offices of Real Estate Appraisers
7
Open-End Investment Funds
1
Optical Goods Stores
16
Outdoor Power Equipment Stores
2
Packing and Crating
1
Paint and Wallpaper Stores
6
Parking Lots and Garages
2
Passenger Car Rental
3
Payroll Services
3
Periodical Publishers
13
Perishable Prepared Food Manufacturing
1
Pet and Pet Supplies Stores
8
Pet Care (except Veterinary) Services
5
Pharmacies and Drug Stores
16
Photography Studios, Portrait
9
Portfolio Management
17
Precision Turned Product Manufacturing
1
Prepress Services
2
Printing Ink Manufacturing
1
Private Mail Centers
8
Professional Organizations
12
Public Relations Agencies
5
Quick Printing
1
Radio Stations
4
Ready-Mix Concrete Manufacturing
1
Real Estate Credit
21
Real Estate Investment Trusts
1
Repossession Services
1
Residential Property Managers
43
Residential Remodelers
51
Retail Bakeries
5
Reupholstery and Furniture Repair
5
Roofing Contractors
4
Rooming and Boarding Houses
20
Satellite Telecommunications
1
Savings Institutions
13
Sawmills
1
Scheduled Passenger Air Transportation
1
Securities Brokerage
30
Security Guards and Patrol Services
1
Septic Tank and Related Services
1
Shoe Stores
23
Siding Contractors
2
Sign Manufacturing
2
Site Preparation Contractors
10
Snack and Nonalcoholic Beverage Bars
32
Software Publishers
28
Solid Waste Collection
4
Special Needs Transportation
1
Sporting Goods Stores
20
Sports and Recreation Instruction
12
Steel Wire Drawing
2
Support Activities for Coal Mining
1
Tax Preparation Services
8
Telecommunications Resellers
1
Telephone Answering Services
1
Television Broadcasting
1
Temporary Help Services
26
Temporary Shelters
6
Testing Laboratories
7
Theater Companies and Dinner Theaters
4
Tile and Terrazzo Contractors
6
Title Abstract and Settlement Offices
6
Tobacco Stores
4
Tradebinding and Related Work
1
Translation and Interpretation Services
4
Travel Agencies
20
Used Household and Office Goods Moving
4
Used Merchandise Stores
19
Veterinary Services
20
Video Tape and Disc Rental
12
Vocational Rehabilitation Services
5
Voluntary Health Organizations
4
Warehouse Clubs and Supercenters
2
Web Search Portals
2
Wholesale Trade Agents and Brokers
29
Wired Telecommunications Carriers
14
Women's Clothing Stores
30
Zoos and Botanical Gardens
2

Have You Considered Buying an Existing Ann Arbor Business?

If you have some capital to play with, you may want to Buy a Business in Michigan. Follow that link and you might discover several good businesses for sale in Ann Arbor.

If you are going to be buying a business, you may want to read this article: How to Buy a Business.

Forming a Company in Ann Arbor, Michigan

It's very important that you are forming a legal entity that operates independently from you. Doing so will separate you from personal liability for business debts and obligations.

The entity you form can be a traditional C-corporation, a Limited Liability Company (LLC), or an S-corporation.

Incorporation is a very popular way to form a business. A key decision is whether to form and S-Corp or a C-Corp, and you also must decide in which state you will incorporate. If you are starting a business in Michigan, you don't necessarily have to incorporate in Michigan. In fact, you can incorporate in any state you would like to. However, if you do incorporate in another state, you'll have to register as a foreign corporation in your home state.

There are many nuances to forming a company. We recommend you read some of the educational articles about company formation that are availabe on our site, such as How to Incorporate. You may also want to seek the advice of an lawyer. Finally, if you are starting a business in Ann Arbor, Michigan, our information on Incorporating in Michigan may be a useful resource if you decide to incorporate in Michigan.

Selling Tips

Being able to sell is essential to your business success. Whether you are focused on selling local customers in Ann Arbor or are selling to customers throughout Michigan, the United States or even the world, you have to be able to sell.

So what does it take to bring in more prospects and close more business? Let us help you refine your selling techniques through our many useful sales advice tips.

Selling on the Phone is a good article to read, one of dozens in the Selling for Entrepreneurs section of our site.

Advancing Your Entrepreneurial Skills

Good business owners recognize that they don't know everything.

Given that you are starting a business in Ann Arbor, Michigan, you will want to take advantage of the many programs available at nearby Michigan universities, colleges and community colleges. It's also smart to see if there are any Ann Arbor networking organizations.

Interviews With Ann Arbor Entrepreneurs

Here, we'll keep a running list of interviews we've had with Ann Arbor entrepreneurs.

Moving Forward

You have a dream -- starting a business in Ann Arbor. To achieve your dream, you have to persevere, even when the odds are against you.

If you choose the right business and love what you do, you will greatly increase your odds of success.

This site is all about helping entrepreneurs in Ann Arbor and elsewhere to achieve real success. We have a wealth of experience in business start-ups, financing, marketing, sales and more...and we've made all of our knowledge available to you.

More Entrepreneurial Resources for Starting a Business in Ann Arbor, Michigan

Here are more links that we believe will help you be successful in starting a business in Ann Arbor.

  • Resources for Ann Arbor, Michigan Entrepreneurs - Browse a variety of resources we've collected to assist Ann Arbor entrepreneurs.
  • Michigan Entrepreneurial Resources - We've gathered state-level entrepreneurial resources to help new entrepreneurs who are based in Michigan.
  • Michigan Small Business Development Center - This organization supports 12 regional offices and over 30 satellite offices, each providing counseling and training to Michigan small business owners and entrepreneurs throughout the 83 counties in Michigan. Services to entrepreneurs are offered through a cooperative agreement with the U.S. Small Business Administration.

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