Opening a Convenience Store in Michigan: Licenses & Permits

Michigan writes distances into its liquor law: at a fuel site, alcohol selection and payment must be at least 5 feet from where fuel is dispensed. Spirits at a gas station are usually limited to large stores, with $250,000 of other inventory. On the fuel side, the state needs 45 days' notice before tanks go in. Below is who issues what, and how each rule shapes the store you design.

Licenses and permits at a glance

Fuel tanks: LARA Bureau of Fire Services

The Storage Tank Division of LARA's Bureau of Fire Services regulates tanks under Part 211 of NREPA, with filings through its Accela portal:

• Installation registration: due at least 45 days before installation (MCL 324.21102), with a plot map of everything within 25 feet. The division has 30 days to issue a review report. Plans don't need state approval but must be certified, either by the state or by a registered engineer's affidavit.
• No local tank permits: local governments can't require a permit, license, inspection or fee for tank installation or use (MCL 324.21109).
• Registration: tanks must be registered before use and renewed every year. A new owner registers within 30 days.
• Operators: Class A and B operators must pass an exam and be trained within 30 days of taking on the role. A Class B operator must be named before the facility operates. A trained Class C operator must be on site whenever the store is staffed and open.
• Cleanup fund: the Michigan Underground Storage Tank Authority (MUSTA), funded by a 1-cent-per-gallon fee on refined petroleum, covers releases discovered on or after December 30, 2014, if registration and fees are current.

Beer and wine: the SDM license

The Michigan Liquor Control Commission issues the Specially Designated Merchant (SDM) license for beer, wine and mixed spirit drinks to go:

• Fee: $100 per location.
• Food license: you must hold an MDARD retail food license.
• Quota: one per 1,000 people. It can be waived if no SDM is within 2 miles, and stores of 20,000 sq ft or more with at least 20% food sales are exempt.
• Fuel sites: alcohol selection and payment must be at least 5 feet from the fuel dispensing point.
• Local input: the commission may weigh the opinions of residents, the local government and police. A local government can ask it to revoke an off-premises license after three sales to minors in 12 months.

Spirits: the SDD license

Specially Designated Distributor (SDD) licenses for spirits are restricted at fuel sites (MCL 436.1541). A business with fuel pumps on or next to the premises can hold one only if:

• it's in a neighborhood shopping center of at least 50,000 sq ft, or carries at least $250,000 of non-alcohol, non-fuel inventory at cost (as little as $12,500 in some small townships); and
• alcohol selection and payment are at least 5 feet from where fuel is dispensed.

SDD licenses are capped at one per 3,000 people, waivable if no SDD is within 2 miles. An SDD can't be within 500 feet of a church or school, measured along the street centerline, unless the rule is waived. That rule doesn't apply to an SDM held alone.

Tobacco and vapor

Michigan has no state retail tobacco license. A store that buys only from Michigan-licensed wholesalers doesn't need a tobacco tax license, but it does need a sales tax license. A bill to create retail tobacco licensing (SB 462) passed the Senate in December 2025 and has not passed the House.

Food service: MDARD

The Michigan Department of Agriculture and Rural Development (MDARD) licenses food in convenience stores:

• License: $186 for a retail food establishment, or $471 for extended retail, which covers unpackaged food for immediate consumption with seating. Apply 30 days before opening. The license year runs May 1 to April 30.
• Plan review is mandatory for a defined food service section: to-go sandwiches, made-to-order drinks such as coffee or smoothies, hot food such as pizza, or a deli with seating. The fee is $197, and MDARD can issue a stop-work order if construction starts before approval.
• Restaurants: food service that's mainly restaurant-style goes to the local health department instead.

Sales tax, fuel and lottery

• Sales tax: register with Michigan Treasury online or on Form 518. There's no fee, and the license runs January to December.
• Fuel outlet license: each outlet needs an MDARD Retail Motor Fuel Outlet License. There's no fee, but it takes 60 to 120 days to process, isn't transferable and expires November 30.
• Pumps: MDARD Weights and Measures registers the service agencies that place devices in service. Any pump with a card reader must have a skimmer security measure (MCL 290.628f), such as disable-on-open, encryption or a non-factory lock. Tape stopped qualifying after 2022.
• Lottery: the Bureau of State Lottery reviews applicants' integrity, debts owed to state or local government and business fitness. It may require a bond, and licenses run up to one year.

What this means for your store design

• Keep alcohol 5 feet from the fuel dispensing point. The alcohol displays and the register where it's paid for both count. This matters most for kiosks and small stores close to the pumps.
• Size the store for spirits only if you'll meet the inventory test. A spirits license at a fuel site generally needs $250,000 of other inventory or a 50,000 sq ft shopping center. Most stores plan for beer and wine in the cooler wall.
• Get food plans approved before you build. Coffee, sandwiches or pizza trigger plan review, and seating moves you to the higher license. See food service build-outs.
• File the tank registration 45 days ahead, and apply for the fuel outlet license early. It can take up to 120 days.
• Specify skimmer protection on every card-reader dispenser.

Local approvals

Your city, village or township also controls zoning, building permits, fire inspections and signs. Our construction checklist covers the local steps.

For Michigan store design, see convenience store design in Michigan and walk-in cooler services in Michigan.

Sources

• LARA Bureau of Fire Services, underground storage tanks; MCL 324.21102 and 324.21109; Michigan UST rules (R 29.2101 to R 29.2192).
• MCL 324.21508 and 324.21510 (Michigan Underground Storage Tank Authority).
• Michigan Liquor Control Code, MCL 436.1501, 436.1503, 436.1525, 436.1533 and 436.1541.
• Michigan Department of Treasury, tobacco tax FAQ and sales tax license FAQ; Michigan Legislature, SB 462 (2025).
• MDARD, food establishment license fees, retail food plan review, retail motor fuel outlet license and weights and measures; MCL 290.628f.
• Michigan Bureau of State Lottery administrative rules (R 432.3 to 432.9).

This page summarizes official sources as of October 2026. It is not legal advice. Fees and rules change, so confirm each one with the agency before you apply.