Business Law Insights
These plain-English articles cover Michigan business law for the people who actually run companies. Some explain the fundamentals such as entity choice, operating agreements and worker classification. Others start with a specific statute or recent Michigan court decision and work through what it means in practice for a business owner. New articles are added as the law develops. Use the filters below to browse by topic.
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, so consult a qualified attorney about your specific circumstances.
Can an Employee Handbook Shorten the Time to Sue? What Rayford Changed for Michigan Employers
Many Michigan employers shorten the time to sue in handbooks and job applications. What the Michigan Supreme Court’s Rayford decision changed, what it left open, and what employers should review now.
Read the article →Before You Sign a Personal Guaranty: What Michigan Business Owners Should Know
A bank, landlord, or supplier wants you to sign personally. What a Michigan personal guaranty really commits you to: payment vs. collection, caps and continuing guaranties, waivers, bankruptcy, your spouse, and the terms worth negotiating.
Read the article →When a Personal Guaranty Fails: Lessons From a Sixth Circuit Bankruptcy Case
A son signed his company’s loan from his mother as “President” and “individually.” The Sixth Circuit held that was not a personal guaranty and undid his pre-bankruptcy transfer of property back to her. Lessons for Michigan lenders and business owners.
Read the article →You Won the Lawsuit. Now What? Collecting a Judgment in Michigan
A money judgment does not pay itself. How Michigan creditors find a debtor’s assets, garnish wages, bank accounts, and receivables, record judgment liens on real estate, and keep a judgment alive for the full 10 years and beyond.
Read the article →When a Sibling Trustee Ignores the Trust: Lessons From a 2026 Michigan Case
A daughter serving as trustee followed an unsigned amendment, kept her siblings in the dark, and lived in the trust’s home rent-free. A July 2026 published decision, Ecker v. Ecker Nickel, upheld her removal and shows what Michigan trustees owe beneficiaries and what your trust should say.
Read the article →The Lady Bird Deed: Passing Your Michigan Home Without Probate
A Lady Bird deed lets you keep full control of your Michigan home for life, then pass it to your family automatically, without probate. How it works, its effect on Medicaid and property taxes, the stepped-up basis it can preserve, and where it falls short.
Read the article →Frozen Out? Michigan Shareholder Oppression and Buyouts
A minority owner was frozen out of a Michigan corporation for decades. A June 2026 published decision, Turner v. J&J Slavik, holds that courts can force the company to buy an oppressed shareholder out, and clarifies that an equitable buyout has a six-year deadline while money damages have a shorter one.
Read the article →Michigan Durable Financial Power of Attorney: Who Handles Your Money If You Can’t
A will speaks only at death. A financial power of attorney covers the gap while you are alive but unable to manage your own affairs. What the document does, how Michigan’s 2024 Uniform Power of Attorney Act changed the signing rules, why notarizing it decides whether it stays effective, and what an agent owes you.
Read the article →Undue Influence in a Michigan Will: When the Caregiver Becomes the Heir
An elderly person can legitimately leave everything to the relative who cared for them. But when that caregiver also holds power of attorney and helps draft the new will, a Michigan court can set it aside. A September 2026 Court of Appeals case, In re Estate of Washington, on how the presumption of undue influence works and the safeguards that protect a plan.
Read the article →Can the Company Credit Card Follow You Home? Reading the Fine Print Before You Sign
A business credit card is supposed to keep company spending separate from your own. On many small-business cards, the fine print makes the person who applied personally liable. What the “Legal Responsibility” clause actually says, why the debt can outlive the business, and what to read before you sign.
Read the article →Specific vs. General Gifts in a Michigan Will: What Nielsen Means for Estate Planning
A gift of “my” household furniture, cars, and jewelry: specific devise or general? A 2026 published Michigan decision, In re Estate of Nielsen, holds it was specific, and explains why that label decides whether those items are protected from the exempt-property allowance. What it teaches about drafting your will.
Read the article →Michigan Patient Advocate Designation: Who Makes Medical Decisions When You Cannot?
Michigan has no standalone “living will.” The document that lets someone you trust make your medical decisions if you cannot is the patient advocate designation. What it does, what the law requires, when it actually takes effect, and how it fits alongside a will, a trust, and a financial power of attorney.
Read the article →Signed for the Company, Sued as Yourself: When a Michigan LLC’s Arbitration Clause Binds the Owner
An owner signed a services contract only on behalf of his LLC, then was sued personally and ordered into arbitration. A June 2026 published Michigan decision holds that signing as the company’s agent does not, by itself, make the owner a party to the contract’s arbitration clause.
Read the article →Will vs. Revocable Living Trust in Michigan: What’s the Difference?
“Do I need a will, or should I have a living trust?” usually is not an either/or question. A plain-English Michigan comparison of what each tool does, how probate and incapacity fit in, the limits of a revocable trust, and why many complete plans use both.
Read the article →Michigan Noncompete Agreements: What the A-Line Case Teaches Employers
A Michigan employer had legitimate concerns about confidential information, but its noncompete reached beyond the employee’s actual role and competitive risk. What the 2026 A-Line decision teaches businesses about drafting restrictions that fit the employee and the interest being protected.
Read the article →LLC, S-Corp, or C-Corp? How to Choose a Michigan Business Structure
“Should I be an LLC or an S-corp?” quietly mixes two different decisions: the entity you form with Michigan and the federal tax status you elect with the IRS. How the LLC, C-corporation, and S-corporation election differ on liability, taxes, ownership, and formalities, and how to choose.
Read the article →The Debtor Deeded the Property to a Family LLC. A Michigan Court Just Undid It.
A judgment is only worth what you can collect. When a debtor deeds property to a family entity for nothing, Michigan’s Uniform Voidable Transactions Act lets a creditor unwind the transfer — and a recent published Court of Appeals decision shows the constructive-fraud route that needs no proof of intent.
Read the article →Your Customer Filed for Bankruptcy. Don’t Ignore the Claim.
Many creditors give up the moment a customer files for bankruptcy, and that reflex leaves money on the table. A creditor-side look at the automatic stay, when a proof of claim is required or advisable, the deadlines that decide whether you get paid, and why monitoring the case matters.
Read the article →Does a Michigan Living Trust Protect Your Assets From Creditors After You Die?
A new Michigan Supreme Court decision settles a common myth: a revocable living trust does not shield your assets from your creditors after you die. But the 401(k) and life insurance proceeds paid into the trust kept their own protection. What the Fowler ruling means for your estate plan.
Read the article →What Happens to Your Michigan LLC If You Die Without a Succession Plan?
A Michigan LLC does not automatically dissolve when its owner dies, but the state’s default rules can split economic ownership from control, leaving a family with distributions and no authority to run the business. What actually happens, and how an operating agreement, a buy-sell, or a trust changes the outcome.
Read the article →Employee or Independent Contractor? What Michigan Business Owners Need to Know in 2026
Michigan doesn’t use one worker-classification test — federal law applies an economic-reality analysis, while Michigan uses the IRS 20-factor test for unemployment and a separate court test for workers’ compensation. With the federal rule in transition and a recent $6.16 million misclassification judgment, here is what business owners need to know.
Read the article →Where Michigan Noncompetes Stand After the Federal Ban Collapsed
The FTC's federal noncompete ban was struck down and formally removed in 2026, so enforceability is back to state law. In Michigan, noncompete agreements are still valid under MCL 445.774a if reasonable — and House Bill 4040, which would restrict them, is still pending. What business owners should know.
Read the article →The Corporate Transparency Act in 2026: What Business Owners Still Need to Know
FinCEN's 2025 rule exempted domestic companies from federal beneficial ownership reporting — but the exemption rests on a regulation, not a permanent change to the law, and the underlying case is now before the Supreme Court. What the Corporate Transparency Act requires today, and why it isn’t fully settled.
Read the article →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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