Business Tax Planning in Bloomfield Hills and Oakland County

Michigan business owners plan against two tax systems at once. Federally, the rules that matter most in 2026 include 100 percent bonus depreciation, the higher Section 179 limit, immediate expensing of domestic research costs and the permanent qualified business income deduction. At the state level, Michigan adds its own corporate income tax, sales and use tax, and property tax considerations.

The two systems interact. A deduction that helps federally may or may not flow through the same way on the Michigan return, and Michigan-specific elections and exemptions have their own deadlines and documentation requirements. Planning that ignores the state layer leaves money and compliance risk on the table.

Michigan imposes a flat 6 percent corporate income tax on C corporations with Michigan nexus, applied after allocation and apportionment. The state sales and use tax is also 6 percent, with no local sales taxes layered on top, which keeps compliance simpler than in many states but still requires careful tracking of taxable and exempt purchases.

Manufacturers have a significant state exemption: under Michigan law, tangible personal property used or consumed in industrial processing is exempt from sales and use tax, and eligible manufacturing personal property is exempt from local personal property tax, replaced by the state's Essential Services Assessment. Claiming these correctly requires documentation, and the rules are detailed, so manufacturers should confirm eligibility with an advisor.

The annual review should cover entity structure and owner compensation, year-end purchases and revenue timing, retirement contributions, credits such as the research and development credit, and any Michigan-specific items: sales and use tax exposure on purchases, industrial processing claims for manufacturers, and personal property tax filings.

Owners in Bloomfield Hills, Birmingham, Troy, Rochester, Royal Oak, Novi and the rest of Oakland County face the same federal rules as owners anywhere, but the state layer, the local economy and the mix of manufacturing, professional services and family businesses make the planning conversations distinctly local. A firm based in the community understands both.

Pagac & Company, P.C. has served business owners since 1975 from its Bloomfield Hills office. The firm combines strategic tax planning, business accounting, financial reporting and advisory work, with national specialty practices for manufacturing companies and dental practice owners and a deep base of local business clients across Oakland County and Metro Detroit.

For local owners, the practical value is a firm that knows the federal rules, the Michigan rules and the owner's own numbers. A consultation starts with the business's actual situation, not a template, and the plan is built around the facts of the company and the applicable law.