Michigan Department of Treasury                                                                                                                                    Attachment 07 
4577 (Rev. 04-22), Page 1 of 2 

2022 MICHIGAN Business Tax Schedule of Shareholders and Officers 
For all Corporations claiming the Small Business Alternative or Start-Up Business Credits 
Issued under authority of Public Act 36 of 2007. 
Taxpayer Name (If Unitary Business Group, Name of Designated Member)                                               Federal Employer Identification Number (FEIN) or TR Number 

Unitary Business Groups Only:  Name of Unitary Business Group Member Reporting on This Form                        Federal Employer Identification Number (FEIN) or TR Number 

PART 1:   SHAREHOLDERS AND OFFICERS.  See instructions. 
1.    A                           B                                                        C                       D       E                     F                   G 
                                                                                           FEIN or                 Check                       % Stock with        % Stock from Col. F less 
Member  Name of shareholder (including corporation, trust, partnership, or family member Social Security number  (X) if an % Stock               attribution       any attribution between 
Number  who is a shareholder through attribution) or officer (Last, First, Middle)       of shareholder or officer officer directly owned      (See instructions.) two active shareholders 
                                                                                                                                   %                         %                         % 
                                                                                                                                   %                         %                         % 
                                                                                                                                   %                         %                         % 
                                                                                                                                   %                         %                         % 
                                                                                                                                   %                         %                         % 
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                                                                                                                                   %                         %                         % 
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                                                                                                                                   %                         %                         % 
                                                                                                                                   %                         %                         % 
                                                                                                                                   %                         %                         % 
                                                                                                                                   %                         %                         % 
                                                                                                                                   %                         %                         % 
Percent of stock (not listed above) owned by shareholders who own less than 10% and receive no compensation:                       % 
                                                                                                                  Total:   100     % 

Continue below using the same Member Number references from column 1A. 
H       I                       J                K                                       L                                 M                                       N 
        Dividends                                                       Total compensation and director 
Member  (used to determine     Salaries, wages and/  Employee insurance fees for officers and/or share-            Share of business income/loss             Total shareholder/officer 
Number  active shareholders)    or director fees plans, pensions, etc.  holders.  Add columns J and K.                     (See instructions.)     income. Add columns L and M. 

If more space is needed, include additional 4577 forms. Identify taxpayer and complete Part 1 and Part 2 on each additional form. (See instructions.) 

+  0000 2022 47 01 27 6                                                                                                                                            Continue on Page 2. 

2022 Form 4577, Page 2 of 2 
                                                                                           FEIN or TR Number 

                                                                           UBG Member FEIN or TR Number 

PART 2:   LIST OF FAMILY MEMBERS AND THEIR CORRESPONDING RELATIONSHIP 
Using the same Member Number references from Part 1, indicate your attributable family relationship (if any) to each shareholder. 
(An attributable family relationship is defined as either a spouse, parent, child or grandchild.) 
  •  If an attributable family relationship exists, designate in columns P through S 
  •  If no attributable family relationship exists, check box in column T. 

2.  O          P                                   Q                                 R                                                S          T 
                                                                                                                                                 Check (X) if 
Member                                                                                                                                           No Attributable 
Number   Spouse             Parent                                                   Child                                            Grandchild Relationship 

PART 3:  SMALL BUSINESS ALTERNATIVE CREDIT. See instructions for definition of active shareholder. 

3.  Compensation and director fees of active shareholders. Add amounts in column L for each active 
   shareholder. Enter here and on Form 4571, line 6  ............................................................................. 3.                         00 
4. Compensation and director fees of officers. Add amounts in column L for each officer who is not 
   an active shareholder. Enter here and on Form 4571, line 7..............................................................        4.                         00 

+  0000 2022 47 02 27 4 

                                                                                    Instructions for Form 4577  
                  Michigan Business Tax (MBT) Schedule of Shareholders and Officers 
       For all Corporations claiming the Small Business Alternative or Start-Up Business Credits  
Purpose                                                                                                                    Part          2 if they  receive  compensation from                       the      business.     List    all   
                                                                                                                           shareholders and               C Corporation officers                 who:        
To     determine  eligibility for                 all    Corporations               to qualify          for           
the    Small      Business  Alternative Credit.                               Corporation  means   a                               Are                                                       
                                                                                                                             •         employees   of the Corporation;
taxpayer that             is required      or has elected                        to file          as a Corporation           •     Are directors         of the Corporation;               or   
under the        Internal           Revenue        Code        (IRC).                                                        •     Own     10  percent  or more                     of the  stock          of the  Corporation,         
                                                                                                                                   including those          by attribution. 
General Instructions 
                                                                                                                           Shareholder  means      a person                       who  owns outstanding               stock           in   
       If filing   as  a Corporation              (including               Limited      Liability                                 a business              or is a member          of a business         entity    that   files          as a
Companies          federally  taxed as                 such)       and       claiming                        a Small       corporation   for  federal income                      tax   purposes.           An   individual               
Business Alternative                  Credit,        complete             this form            and  include   it                   is considered   as        the  owner  of  the stock              owned,       directly     or        
as  part      of the  annual  return      to report:                                                                       indirectly,  by      or for family              members               as defined  by IRC              § 318(a) 
  •    Shareholder and                   C Corporation officer                 qualifications              for   the       (1). 
       Small Business               Alternative         Credit;                                                            An      officer              of a C Corporation             includes        the   chairperson      of the  
  •    Compensation  and  director fees                              of active         shareholders             and        board,      president,  vice president,                  secretary,         and    treasurer,      or        
       all      C Corporation           officers       for     the  computation                     of the     Small       persons performing                 similar       duties.     
       Business  Alternative  Credit. 
                                                                                                                                 A family member                , as  defined     by  IRC                 § 318(a)(1),     includes       
NOTE:   A          member          of a Limited                Liability            Company             (LLC)   is         spouses, parents,         children            and      grandchildren.             
characterized for                 MBT     purposes                      as a shareholder      if the LLC              is   
                                                                                                                           NOTE:  Rules of            attribution          in IRC                         § 318(a)(1)  do not             
taxed          as a corporation for              federal       purposes.          
                                                                                                                           differentiate between                       an adult  and   a   minor      child.   
NOTE:   A          federally          disregarded  entity                        is required      to file          as if
                                                                                                                           Outstanding stock                 means  all stock             of  record,        regardless     of            
    it were      a sole  proprietorship                     if owned         by  an  individual, or                   a   
                                                                                                                           class,     value,  or  voting rights,                 but  outstanding            stock  does    not           
branch      or division      if owned      by another business                             entity.       
                                                                                                                           include treasury         stock.         
This      form  also           is required  to  be completed                        and      included          as     
part   of  the  return whenever                             a corporation  claims                       a Start-Up         All                                                                                                           
                                                                                                                                     attributable family members                    of  persons         directly    owning               
Business Credit.          To        qualify        for  the     Start-Up          Business            Credit,    the       stock                                                                                         
                                                                                                                                       during the tax year must   be listed   in Parts   2 and 3.
compensation,            director          fees,          or distributive           shares        paid  by the                     If more  lines  are       needed        for  listing the         shareholders         and          C   
taxpayer          to a shareholder              of a C Corporation          or S Corporation,   or                         Corporation          officers,  include  additional copies                         of  this   form.            
an officer                    of a C Corporation, cannot        exceed            $135,000.                                Complete        the  taxpayer name                 and      account       number       on each               
                                                                                                                           copy       (and  UBG  member                       if applicable),       and  lines           1 and      2 as  
Line-by-Line Instructions                                                                                                  necessary.          If  using more              than    one   copy             of the form,    continue      
Lines not listed are explained on the form.                                                                                the      sequential  number system                     for  the  Member           Number        in           
                                                                                                                           columns          A, H and O.   
Name and Account Number:                                 Enter name            and      account            number      
as reported         on  page                 1 of the  MBT Annual Return (Form 4567).                                      NOTE:           Rules    of  attribution in              IRC                   § 318(a)(1)  do not           
                                                                                                                           differentiate between                       an adult  and   a   minor      child.   
Unitary Business  Groups (UBGs):                                      Complete  one  form for                         
each      member  that                       is a corporation       (including            an  entity  taxed                Columns  B and C:                        Identify each           shareholder          (including               
federally      as such).           Enter          the  Designated  Member name                                  in the     Corporations,           Trusts,  or Partnerships)                  and      C Corporation                      
Taxpayer          Name  field  and  the member                                   to whom        the  schedule              officers    by     name  and Social             Security         number.          Corporations,              
applies on         the  line        below.         On  the     copy         filed         to report the       DM’s         Trusts, and         Partnerships            should      be    identified           using  the    Federal     
data (if      applicable),          enter        the   DM’s     name           and      account            number          Employer Identification                   Number        (FEIN)                 or Michigan Treasury          
on each       line.                                                                                                        (TR) assigned         number.           
PART   1: SHAREHOLDERS                                        AND OFFICERS                                                 NOTE: Column C: An  individual                                     or foreign      entity     that  does     
Line  1 (Columns A through N):                                        In  column 1A,                   assign              not                                                                                                           
                                                                                                                                     have   a Social Security number                       or  FEIN         may  enter     in          
numbers           (beginning with                 1)  to all   shareholders               and C                            Column                                                                                                       
                                                                                                                                          C “APPLD FOR” (an abbreviation for “applied for”)   or
Corporation officers                       in order      of percentage      of stock ownership                             “FOREIGNUS”                                                                                
                                                                                                                                                    (an abbreviation for “foreign filer”).
(percentage      in column G),                     starting     with        the      highest          percentage           Column  E:  Enter the                    percentage         of outstanding            stock                  
first.  (Repeat  this  numbering      in Part      1, line  1H,  and  Part      2, line                                    each       shareholder  or C           Corporation           officer      owns     directly.                 
2O.          It is essential that        this      numbering             system              is followed.) All             If      a shareholder owned                stock      for              a period less     than    the           
shareholders’  family  members,                                as defined           by  IRC             § 318(a)(1),       Corporation’s         tax  year,  multiply  that shareholder’s                          percentage           
are    considered        shareholders  and must                         be   listed                in Part      1 and      of  ownership  by the                number              of months       owned  and  divide  the             

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result      by the  number      of months      in the  Corporation’s  tax  year. 
                                                                                                                                      Stock Percentage 
Taxpayers  must account            for  100     percent      of the stock.                 If it is  not                Column E                 Column F                           Column G 
accounted for,      processing           of the  return may           be delayed. 
                                                                                                          Husband                                  100%                                 70% 
                                                                                                                           40% 
Column  F:  Enter the       percentage          of   outstanding         stock  each                      (active)                       (all shareholders)  (husband/wife/son) 
shareholder owns,    including       attribution             of ownership from     family                    Wife                                  100%                                 100% 
                                                                                                                           10% 
members under       IRC        § 318(a)(1).      If no attribution     exists,  enter   the               (inactive)                     (all shareholders)                    (all shareholders) 
percentage from     column               E in column      G and leave   column   F   blank.                     
                                                                                                             Son                            70% (husband/                               70% 
                                                                                                                           20% 
Column  G:  When  reporting ownership                       of            a person who                    (inactive)                             wife/son)                   (husband/wife/son) 
   is an  active   shareholder,       do  not include        in   Column     G any                        Daughter                          80% (husband/                               40% 
                                                                                                                           30% 
stock   ownership attributed          to  this  person       from another                                 (active)                          wife/daughter)                       (wife/daughter) 
active   shareholder.  See definition            of  active     shareholders      in               
the   Part      3 instructions. For        the  purposes       of determining                           Column  I: Enter  total dividends              received         by each           shareholder  
disqualification   for    the  Small  Business Alternative                  Credit,  an                 during  the  tax  year  from  this  business  (used      to determine  active  
active  shareholder’s  share             of business      income      is not    attributed              shareholders).   This  includes regular           distributions               for  an              S
to  another  active  shareholder.                                                                       Corporation. 
EXAMPLE:   In       this    case,   the     husband  and  daughter  are active                     
                                                                                                        Column  J:  Enter salaries,           wages,   and    director           fees   that  are            
shareholders  because  their  total  compensation,  director  fees,  and  
                                                                                                        attributable   to  each shareholder           or  C Corporation               officer.            
dividends  from  the business          are    greater     than    $10,000    and  they             
                                                                                                        Compensation       paid     by      a professional    employer              organization   to   
own  more  than  5%            of stock    (column        E).  The  wife  and  son  are            
                                                                                                        the officers           of a client  (if  the  client              is a C Corporation)      and      to
not   active   because  their  total compensation,                director  fees,    and           
                                                                                                        employees   of     the  professional  employer organization                        who     are    
dividends  from  the  business  are  less  than  $10,000  (even  though  
                                                                                                        assigned      or leased      to and   perform     services           for      a client  must    be  
they  own more      than   5%      of stock). 
                                                                                                        included      in determining  the  eligibility      of the  client  for  this  credit. 
                                                                                                        NOTE:        If a shareholder         owned    stock   for  less  than the            entire      
                                                                                                        tax   year      of the  corporation,  or  an officer       served           as  an  officer       
                                                                                                        less   than  the  entire tax     year,   report   only     the       salaries,   wages            
                                                                                                        and   director  fees attributable        while    serving            as an  officer               
                                                                                                        or   shareholder.  These amounts              must  be annualized               when              
                                                                                                        determining   disqualifiers,  but should            be     reported           as actual           

ATTRIBUTION  EXAMPLE: 
Larry David Stone                 Husband of Betty Stone, Father of Mary Stone, Stepfather of Tammie Rock, Step Grandfather of Kathy Rock 
Betty Ann Stone                   Daughter of Bob Pebble, Wife of Larry Stone, Mother of Tammie Rock, Stepmother of Mary Stone, Grandmother of Kathy Rock 
Mary Elizabeth Stone              Daughter of Larry Stone, Stepdaughter of Betty Stone 
                                  Daughter of Betty Stone, Stepdaughter of Larry Stone, Spouse of Steve Rock, Mother of Kathy Rock, Granddaughter of 
Tammie Marie Rock                 Bob Pebble 
Steve Carl Rock                   Spouse of Tammie Rock, Father of Kathy Rock, Brother of Mike Rock 
Kathy Evelyn Rock                 Daughter of Tammie and Steve Rock, Granddaughter of Betty Stone, Step Granddaughter of Larry Stone 
Mike Joseph Rock                  Brother of Steve Rock 
Bob Kenneth Pebble                Father of Betty Stone, Grandfather of Tammie Rock 
Terry Robert Marble               Friend 

Part 1: Shareholders and officers - See instructions                                             Part 2: List of family members and their corresponding relationships 
1.      A                                        B                                               2.     O      P                    Q              R               S                         T 
               Name of shareholder (including corporation, trust, partnership,                                                                                                          Check (X) if 
  Member       or family member who is a shareholder through attribution) or                     Member                                                                               No Attributable 
  Number                           officer (Last, First, Middle)                                 Number        Spouse             Parent         Child      Grandchild                  Relationship 
      1        Stone, Larry David                                                                     1      2                                   3 
      2        Stone, Betty Ann                                                                       2      1             8                     4          6 
      3        Stone, Mary Elizabeth                                                                  3                    1 
      4        Rock, Tammie Marie                                                                     4      5             2                     6 
      5        Rock, Steve Carl                                                                       5      4                                   6 
      6        Rock, Kathy Evelyn                                                                     6                    4-5 
      7        Rock, Mike  Joseph                                                                     7                                                                               X 
      8        Pebble, Bob Kenneth                                                                    8                                          2          4 
      9        Marble, Terry Robert                                                                   9                                                                               X 

96 

amounts      on this form.                                                                                    O,     the  corresponding relationship,                    and     the  number               of the             
NOTE: All compensation                   must         be included, whether                    or not the      member(s)                                                 
                                                                                                                                with that relationship.
shareholder          or C Corporation  officer worked                      in Michigan.                       Column T: Check  column                               T for   each  shareholder  listed only                     
                                                                                                                     if columns      P through      S are        blank      (no  attributable  relationship                    
Column  K: Enter  employee  insurance payments                                    and   pensions          
that are  attributable            to each shareholder                or C Corporation  officer.               exists). 

NOTE:        If a shareholder owned             stock     for   less     than      the   entire    tax        PART 3: Small Business Alternative Credit 
year      of the  corporation,      or an       officer      served      as an          officer     less      Line  3: Add  compensation and                          director      fees                in column      L for  
than   the   entire  tax year,       report    only   the    employee             insurance                   each      active  shareholder  and enter                   the    result    on      line             3 and   on  
payments,   and        pensions  that are        attributable           while     serving        as           Form 4571,        line    6.   
an   officer   or  shareholder.  These amounts                    must     be     annualized              
when  determining  disqualifiers,  but  should      be reported      as actual                                An active         shareholder:        
amounts      on this form.                                                                                      •    Is      a shareholder of       the     Corporation,          including             through               
NOTE: All employee              insurance        payments          and      pensions        must       be            attribution, AND            
included, whether             or not the    shareholder                of C Corporation officer                 •    Owns      at  least         5 percent  of outstanding                  stock,         including           
worked      in Michigan.                                                                                             through      attribution  (column                      E or              F = 5 percent      or  more),  
                                                                                                                     AND 
Column L:   If         any  shareholder or           officer      of                a C Corporation  
has   total  compensation  and  director fees                           in column          L of over            •    Receives      at least  $10,000  in compensation,                            director       fees,         
$180,000 after      loss   adjustment,          the        C Corporation      is not eligible                        and  dividends  from the               business        (sum               of columns      I and   L   
for the  Small     Business     Alternative        Credit.                                                              = $10,000       or   more).      Important:  For  short-period returns                                 
                                                                                                                     or      a part-year shareholder,              compensation,             director          fees,   and     
Column  M: Multiply the               percentage               in column      G by line             5c on            dividends      of each individual                must          be annualized      to meet this            
the  MBT Common Credits for Small Businesses (Form 4571).                                                            requirement. 
UBGs: Multiply the           percentage               in column      G by the          sum          of the    Annualizing 
MBT Unitary Business Group Combined Filing Schedule for 
                                                                                                              Multiply         each  applicable  amount by                    12  and     divide           the  result         
Standard Members (Form 4580),                     Part      2A,    lines       30    and  34,     plus    
                                                                                                              by the     number             of months      in the tax          year  the     business          operated        
capital loss    deducted        on    the   federal   returns           of all members.           
                                                                                                              or     the  person was                 a shareholder.  Generally,                           a business  is      
Column N:   If         any  shareholder             or   officer     has  total  income                in     considered      in business              for    one  month              if the      business      operated       
column          N of over $180,000          after  loss     adjustment,            the   taxpayer             for more          than  half  the     days          of the month.      
   is not eligible  for  the    Small       Business      Alternative              Credit.          If any  
                                                                                                              NOTE:               If the business    was          in operation for        less        than   a   month        it   
shareholder          or officer      has   total  income             in column          N of over  
                                                                                                                     is considered      to have been              in business for         1 month. 
$135,000, the      taxpayer             is not eligible   for   the      Start-Up        Business         
Credit.                                                                                                       Line 4:          Add the   compensation              and    director        fees          in column      L for  
                                                                                                              each      C Corporation  officer  who      is not  an  active  shareholder  and  
PART   2: LIST           OF      FAMILY MEMBERS AND THEIR                                                     enter  the  result      on line      4and             on Form  4571,  line    7.
CORRESPONDING RELATIONSHIP TYPE                                                                               REMINDER:                  Active        shareholders  of  an                    S Corporation  are             
Columns      P through               S represent relationships                  affected      by              included      in the  line      3 calculation,  even      if the  shareholder      is also  
attribution.                                                                                                  a      C Corporation officer.             Because          the   definition                 of “officer” for    
For   each  shareholder listed             in  Part            1, column  A, enter               the          this      purpose  does  not apply                     to an      S Corporation,               line        4 will  
corresponding          number  of the          shareholder’s         spouse,          parent,                 always      be blank for                   an S Corporation. 
child,      or grandchild,      if any, listed         in Part      1, column A.                              Include completed Form 4577 as part of the tax return filing.                                                 
   If more     than    one  number      is entered  in boxes                          P through  S,        
separate numbers          with   a   dash.      For  example,                  if a family member          
has three     children,      each     child’s    member         number           should     appear        
in the  “Child”     column         with     dashes    separating           them      (“2-3-4”).         
Do  not  use         a dash      to imply   included         numbers  (such                   as “5-8”  
meaning      “5  through 8”),          but  instead      include        each      member                  
number (“5-6-7-8”).          Do       not   use  commas.        
EXAMPLE (SEE THE ATTRIBUTION EXAMPLE ON 
THE PREVIOUS PAGE):                         Kathy Rock’s           (6)      parents           (4 and   5)   
work for   the  company.           Kathy    will   list   “4-5”         in column Q.   
NOTE:   If     the  space provided              in  the    line               2 columns      is not  
adequate      to list all         of the corresponding          relationships,            attach          a   
separate sheet           of paper with      the   member           number          from     column         

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