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.
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.
Read the article →