The TTB has a pretty thorough start up guide for new wineries to get the "basic permit". Not sure about Michigan but states generally require wineries to get the federal basic permit before applying for a state winery permit.
I doubt a basement in a residential home would qualify though. The space WILL be available for inspection by TTB officers and state excise police as part of the licensing process and routine records inspection. Besides, you will probably need more room once you get successfully selling. Anything you've made prior to being licensed can't be sold by the way. The basement also may not have sufficient electric, water, drains for your needs and it may be difficult to get larger equipment and tanks into the space.
Then, where would you do your tasting and sales? The location must meet county zoning requirements. Likewise, the space will be inspected by the health department and need to have sufficient sanitation sinks and restrooms.
Just some things to consider, not trying to discourage. I made the move 6 years ago from garage wine maker to opening up a winery. I remodeled an ag building for the winery&tasting room and put in 10 acres of vines. One big lesson I've learned is that you will always need more space than you think. The other lesson is that things will always cost more than you think.
Note that the winery and tasting areas do not have to be in the same building. I've seen small wineries make wine in renovated hog barns or in a warehouse and have a nice, quaint tasting room elsewhere.
Good luck and have fun