4894: Schedule of Shareholders and Officers* (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4894 is the 2025 Corporate Income Tax Schedule of Shareholders and Officers for corporations claiming the Small Business Alternative Credit. It reports stock ownership, shareholder and officer compensation and income, and family relationships used to determine attri
Who files this form
The 2025 Michigan Form 4894 is for all corporations claiming the Small Business Alternative Credit.
For a unitary business group, the form asks for the designated member’s name and FEIN, plus the name and FEIN of the group member reporting on this form.
What you'll need
Have the information requested on the form ready:
- Taxpayer name and federal employer identification number (FEIN), plus the requested member information for a unitary business group.
- Shareholder and officer names, FEINs or Social Security numbers, and officer status.
- Stock ownership percentages, including ownership through attribution.
- Dividends, salaries, wages, director fees, employee insurance plans, pensions, and each shareholder’s share of modified business income or loss.
- Family relationships between individual shareholders: spouse, parent, child, or grandchild.
Common mistakes
- Completing Part 1 first. The form says to complete Parts 2 and 3 before Part 1.
- Confusing actual amounts with annualized amounts. For a short-period return or a part-year shareholder or officer, enter the actual compensation, director fees, and dividends received during the period. Annualize compensation and director fees when determining credit disqualifiers. Annualize compensation, director fees, and dividends when determining active shareholders.
- Leaving identifying information off extra copies. If more space is needed for Part 2 or Part 3, include additional copies of Form 4894. Repeat the taxpayer name and FEIN at the top of each copy of page 1, and carry the FEIN to page 2 or page 3, as applicable.
Questions people ask
Where do the Part 1 totals go?
Enter total compensation and director fees for active shareholders on Form 4894, line 1, and Form 4893, line 7. Enter the total for officers who are not active shareholders on Form 4894, line 2, and Form 4893, line 8. Both totals come from Part 2, column L.
How do I calculate total compensation and director fees?
In Part 2, add column J, salaries, wages, and director fees, to column K, employee insurance plans, pensions, etc. Enter the result in column L.
Which family relationships belong in Part 3?
Part 3 covers spouse, parent, child, and grandchild relationships between individual shareholders. Use the same identifying numbers assigned in Part 2, column A, and enter the related shareholder’s identifying number in the appropriate relationship column.
What if a shareholder has no attributable family relationship with another shareholder?
List the individual shareholder’s identifying number in Part 3, column O, and enter an “X” in column T.