How to Choose a CPA in Michigan

The right CPA saves you money and stress for years. The wrong one costs you both, and you often find out from a letter. Michigan adds two wrinkles most states do not have: a city income tax in 24 cities, and a state return that no longer follows the federal one for business owners. Here is how to choose well, in five steps.

1. Know what you're hiring for

"I need a CPA" means different things, and firms specialize. Before you contact anyone, name the actual job:

• Tax preparation — filing this year's return. In Michigan that can be three returns: federal, state, and city.
• Tax planning — year-round strategy: entity choice, retirement contributions, timing income. This is where a CPA earns multiples of the fee.
• Bookkeeping and payroll — monthly work for a business, usually a recurring engagement. If you employ anyone in a city with an income tax, city withholding is part of it.
• IRS or Treasury trouble — an audit or a notice. You want someone who does representation regularly, not occasionally.

2. Check the license, and check which license

"Accountant" and "tax preparer" are not regulated titles. CPA is, issued by the Michigan Board of Accountancy after 150 semester hours of education, the CPA exam, 2,000 hours of verified experience, and 40 hours of continuing education every year. Verification takes a minute on LARA's license lookup (opens in new tab). Search by name and read the license number.

The number matters in Michigan. A license starting 1101 is a licensed accountant, cleared for the unrestricted practice of public accounting. A number starting 1103 is a registered accountant: allowed to use the title, but, in the board's own words, "shall not engage in the practice of public accountancy." Every listing in this directory is an active 1101 license. If the person you are considering is not here, here is how to dig deeper before you hand over a Social Security number.

3. Match their experience to your situation

A brilliant corporate auditor may be the wrong choice for your rental properties. Ask every candidate: "How many clients like me do you work with?" You want someone who sees your situation weekly. Some Michigan-specific versions of that question:

• You live or work in Detroit, Grand Rapids, Lansing, or any of the 24 cities with an income tax. Ask how many city returns they file, and whether they handle the nonresident version. Detroit taxes residents at 2.4% and nonresidents who work in the city at 1.2%, and only Detroit's return is processed by the state. The other cities run their own forms, and most are due April 30, not April 15.
• You own a business that buys equipment. Ask what a Michigan decoupling adjustment is. Since tax year 2025 Michigan no longer follows the federal rules on bonus depreciation, business interest, and research costs, so the state return needs additions the software does not fill in on its own. A CPA who has not heard of this is not the one for a business return.
• You own a partnership or S corporation. Ask whether the flow-through entity election still makes sense for you. It is binding for three years, and the answer changed in 2025 when the federal deduction for state taxes moved. You want someone who will run the numbers, not recite a rule.
• You are retired or about to be. Ask how they choose between Michigan's retirement subtraction methods. The subtraction has been phasing back in since 2023 and reaches 100% for everyone in tax year 2026, and retirees pick a method each year. The right pick is worth real money.
• You freelance. Schedule C, quarterly estimates, and the home-office and vehicle rules, fluently.

4. Understand the fee before you commit

Ask two questions: "What will this cost?" and "What would make it cost more?" A trustworthy CPA answers both plainly. Most quote flat fees for standard returns and hourly rates for everything else, and a city return is usually a line item. For real numbers, see what a CPA costs in Michigan. Get quotes from two or three. Prices for identical work vary more than most people expect.

5. Ask these questions in the first call

• Are you taking new clients for this tax season?
• Who does the actual work: you, or staff you review?
• How do I reach you after April 15, and how fast do you respond?
• Do you file city income tax returns, and for which cities?
• What do you need from me, and by when?
• Have you represented a client like me in an audit?
• What is your fee, and what makes it change?

The answers matter less than the pattern: clear explanations, no dodging on fees, realistic promises. Anyone guaranteeing a specific refund before seeing your documents is guessing, or worse.

Red flags: walk away if you see these

• Fees based on a percentage of your refund. This rewards inflating the refund with claims you will be liable for.
• Won't sign your return or show a PTIN. Paid preparers are required by law to do both. Refusal is the signature move of a "ghost preparer."
• A license number that starts with 1103, or no license at all, from someone offering to prepare your return as a CPA.
• Promises a big refund before seeing your documents.
• Wants your refund deposited to their account. Never. It goes to yours.
• Asks you to sign a blank or incomplete return.

Frequently asked questions