Business Law Insights
Plain-English guidance on forming and running a Michigan business, along with notes on legal developments that affect corporate owners. New articles are added periodically.
The articles on this page are provided for general educational purposes only and do not constitute legal advice. Reading them does not create an attorney-client relationship. Every business situation is different — consult a qualified attorney about your specific circumstances.
LLC Operating Agreements in Michigan: What They Are and Why You Need One
Michigan doesn’t require an LLC to have an operating agreement — but that’s not reassuring. Without one, the state’s generic default rules run your business instead, including real gaps around how a member can exit. What one covers, and why most LLCs need one.
Read the article →Equity Compensation Agreements Under Michigan Law: What a $3 Million Verdict Teaches Business Owners
A published Michigan Court of Appeals decision affirmed a $3 million verdict against an employer whose written agreement promised equity based on “hurdle rates” it never defined. What the case teaches about drafting equity terms, documenting performance reviews, and the risk of informal promises.
Read the article →LLC vs. Sole Proprietorship: Why the Extra Step Is Worth It
A sole proprietorship costs nothing to start — and offers nothing in return when a creditor or lawsuit reaches past the business. Here is what forming an LLC actually protects, what it does not, and why the modest effort is worth it for most Michigan business owners.
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