Important: The information in this article applies to individual investors and LLCs that are taxed as pass-through entities. The rules are different for corporations and LLCs electing to be taxed as a corporation and are not addressed here. This article is for informational and promotional purposes only and, as always, you should consult with a…
Tag: metro Detroit
Are Non-Compete Agreements Enforceable Against Independent Contractors in Michigan?
This is one of those gray legal areas where the answer is “it depends on the facts of the situation.” Previously, I wrote about the basics of non-compete and non-solicitation agreements that are becoming increasingly common in all industries. At their core, non-compete agreements restrain the free labor market, and are therefore analyzed under the…
Is a Bad Review Defamation? Protecting Your Business Reputation Online.
Following my previous article about online defamation, business owners frequently ask me whether they can “sue” Facebook or Yelp or Google, etc., to get a negative review removed. Or whether they can “sue” the poster for “reputation damages.” This is especially common in the trucking industry, where Carrier411 hosts a platform that allows brokers and…
Are you expecting payments under a lease, land contract, or promissory note? It may be time to dust off those documents and call a lawyer.
The economy is still uncertain, especially for business owners who rely on lease payments, land contract payments, promissory notes, or other installment-type payments for their income are in for tough month. Payees may very well be unable to make payments on time or at all. What are your options to protect your rights? It is…
5 Legal Tips for Business Owners Weathering the Coronavirus Disruption
There is no doubt you are distracted by this coronavirus outbreak. Constant news alerts, supply shortages, government-mandated closures and cancellations make it all but impossible to also run your business. However, remember that your lawyers are available to assist you. For example, if you have questions about obligations to your employees, insurance coverage questions, contract…
Don’t Spin Out: 5 Lessons for Every Business Owner From the Peloton Copyright Lawsuit.
Those of you who follow me on Instagram know that I am the #Trilawyer (basically, a lawyer whose hobby is doing triathlons). The cycling leg just happens to be my favorite, I love going to spin class at the gym, and I am also a big fan of watching pro cycling on TV. So obviously…
4 Must Have Legal Documents for New Business Owners
Whether you are a one-man computer whiz coding the next blockbuster iPhone app, or a five-employee manufacturer making parts for a Tier 1 auto supplier, you need basic corporate forms to protect your assets and investments. A limited liability company (or LLC) is the preferred way to organize and obtain this protection. Plus, if you…
Non-Compete vs. Non-Solicitation: Key Differences that Every Employer Must Know
No matter what industry you are in, you have probably encountered non-compete and non-solicitation agreements. In Michigan, standard pre-employment paperwork often contains obligations for the employee not to compete with the employer (non-compete) and not to solicit the employer’s existing customers or other employees (non-solicitation). Although these obligations may be in the same boilerplate paragraph…
Terror From Beyond the Grave: 5 Critical Mistakes To Avoid When Terminating Your Company
It is a classic horror movie plot line. The good guy finally killed off that scary monster/evil janitor/gremlin. Hooray! Triumphant, the hero turns his back to celebrate with fellow survivors when SUDDENLY the monster/evil janitor/gremlin rises from the dead to take down that one final victim! In the business world, if you do not take…
Starting a Business? Choose Your Organizational Structure!
Every business owner needs to incorporate. Forget about sole proprietorships or a partnership — running your business without formally organizing is like driving without insurance: You will be OK so long as you don’t get into an accident. But when someone rear-ends you, you will be in dire financial straits regardless of who caused the…
Why Annual Meetings Are Critical to Protecting Your Personal Assets From Business Debts.
As a new and growing business owner, you read my articles on incorporation and essential corporate documents, and took my advice to heart. You retained an attorney and accountant, drafted and filed the basic forms, and Small Business LLC is up-and-running. However, you are not done — there are important steps to take for you…
5 Often-Overlooked Essentials When Selling Your Business
You finally got that phone call from the California venture capital firm that wants to buy your start-up for a couple of million dollars. You are eager to sell and use that money to pursue other projects and passions. The attorneys and accountants have been retained, and the Asset Purchase Agreement has been drafted. But…