How to start a pet sitting business in Michigan (2026)

1Pet sitting demand in Michigan

About 59% of Michigan households own at least one pet. Summer weekends up north, to Traverse City, Petoskey, Mackinac and the lake cottages of the Lower Peninsula, are the biggest driver of overnight bookings. Detroit Metro Airport is a major Delta hub, so metro Detroit clients fly often for work and holidays. The firearm deer season opens November 15 and many households leave for camp that week. Selfridge Air National Guard Base in Macomb County adds military families, and University of Michigan and Michigan State staff book sits around school breaks.

The biggest markets: Metro Detroit, Grand Rapids, Ann Arbor, Lansing / East Lansing.

2Can you board pets at home in Michigan?

Visits and overnights in the client's home need no state license. Boarding at your home is regulated once numbers grow. Michigan's Dog Law defines a kennel as a place where 3 or more dogs are kept for sale, boarding, breeding or training for pay. Kennels are licensed by the county treasurer ($10 for up to 10 dogs, $25 for more), or by a local animal control office in some cities and townships, and a new kennel needs a state Department of Agriculture inspection certificate first. Keeping to one or two client dogs at a time stays under that count, but local zoning still applies: many townships and cities limit home businesses or the number of dogs per household. Check your zoning office, HOA and lease.

3Set up your business in Michigan

• File an LLC. $50 one-time filing with the Michigan LARA Corporations Division (MiBusiness Registry). It separates your personal assets from the business, which matters when you hold clients' keys.
• Recurring entity cost: $25/year, Annual Statement filed with LARA's Corporations Division by February 15 each year after formation ($50 penalty if late).
• Get an EIN from the IRS. It is free and takes about 10 minutes online.
• City or county business license: typically $25-100/year. Check your city's revenue or business services site.

Michigan-specific: If you form your LLC after September 30, you skip the next February 15 annual statement, so a fall formation buys you an extra year before the first $25 filing. Michigan also offers a fee waiver when a majority of the initial membership interests are held by veterans (discharged under conditions other than dishonorable), so check that before you pay.

4Taxes for Michigan pet sitters

Sales tax: Michigan's 6% sales tax applies to sales of goods, and its use tax reaches only a few services like telecommunications and hotel stays. Dog walking, pet sitting, drop-ins, boarding and grooming are not on that list, so they are generally not taxed. What is taxable: products you sell (treats, leashes, shampoo) and the sale of animals themselves, including puppies from a breeder who sells more than once. If you sell products you'll need a sales tax license from Treasury. Michigan has no local sales tax. Confirm with Michigan Treasury or an accountant if your services include product sales.

State income tax: Flat-rate state income tax.

Other taxes worth knowing: Michigan's flat income tax is 4.25% for 2026. On top of that, 24 Michigan cities levy a city income tax. Detroit charges 2.4% for residents and 1.2% for nonresidents, and Grand Rapids charges 1.5% and 0.75%. If you live in or work in one of those cities, your business profit may be taxed there too.

Official source: Michigan Department of Treasury (Sales and Use Tax) →

5Insurance and bonding in Michigan

Carry general liability with care, custody and control coverage for pets in your care, plus key and lockout coverage. A bond reassures clients leaving you alone in their home for a week up north. Winter matters here: lake-effect snow on the west side of the state and ice everywhere can make you late or stranded, and an empty house can lose heat or freeze pipes. Write a backup sitter and an emergency plan into your client agreement.

• General liability with care, custody and control covers harm to the pets in your care and damage in the client's home.
• Key and lockout coverage pays to rekey a home if you lose a client's key.
• A bond covers theft claims and is a cheap way to reassure new clients.

Workers' comp once you hire: Michigan requires workers' comp once you have 3 or more employees at one time (part-timers count), or as soon as even one employee has worked 35+ hours a week for 13 weeks or more in the past year. A sole proprietor is never counted as an employee of their own business, but note that an LLC member who is a manager counts as an employee. Most small operators buy a policy as soon as they hire, rather than tracking the thresholds. Michigan Workers' Disability Compensation Agency (WDCA) →

6What to charge in Michigan

Typical Michigan bands for 2026:

• Drop-in visit (30 min): $18 to $30
• Overnight in the client's home: $60 to $95 per night
• Additional pet: +$5-10 per visit

Overnights and peak dates: Michigan overnights in the client's home usually run $60 to $95 a night, with Ann Arbor, Oakland County and the Grosse Pointes at the top. The Fourth of July, Memorial Day and Labor Day weekends book first, followed by Thanksgiving, deer season week and Christmas through New Year's. Charge a holiday rate for those dates and open summer bookings in early spring.

Check your numbers with the pet sitter rates calculator and the holiday rate calculator.

7Hiring sitters in Michigan

Michigan does not use the ABC test. For unemployment, state law uses the IRS 20-factor test, which looks at behavioral control, financial control, and the relationship. Workers' comp applies its own test. If you set the schedule, assign the dogs, and set the price, your sitters likely look like employees, so most growing Michigan businesses move to W-2.

If the Unemployment Insurance Agency decides your 1099 sitters were employees, you can owe back unemployment taxes plus interest and penalties. If an uninsured sitter is hurt on an icy sidewalk and is found to be an employee, you can also face workers' comp penalties and personal liability for the claim.

8FAQ