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Michigan Business Law Questions & Answers
1 Answer | Asked in Business Law, Energy, Oil and Gas and Real Estate Law for Michigan on
Q: My apartment company called me saying they paid a utility bill from an electric company that I don't use. What do I do?

I use electric company A ever since I moved into the apartment and was required to get it in my name. Now, 4 months into living here I get contacted by the company saying they paid a bill from company B and want me to pay them back. I have never used company B, didn't sign up or anything. Why... Read more »

David Soble
David Soble answered on Feb 11, 2019

Sounds strange. I would want to see the invoices first before paying for the alleged invoices. I am not sure how two different utility companies can service your one residence unless one provides the gas and the other provides electric. Trust but verify.

1 Answer | Asked in Business Law for Michigan on
Q: If I buy a replica designer bracelet for about $20, then I resell it for the price of the real bracelet about 7,000

is it illegal?

Thomas. R. Morris
Thomas. R. Morris answered on Feb 7, 2019

Not in the abstract, but look out for MCl 445.903.

1 Answer | Asked in Estate Planning, Real Estate Law, Business Formation and Business Law for Michigan on
Q: Want to start a Property Management Company in MI where I would purchase & rent the properties. What's required?
Trent Harris
Trent Harris answered on Jan 27, 2019

Business savvy and real estate management experience would be a good start. If you have those, you will be exposed to the various ownership entities real estate investors use to acquire and operate rental properties. You would have agreements and requirements for various independent contractors and... Read more »

1 Answer | Asked in Contracts, Banking, Business Formation and Business Law for Michigan on
Q: I am a minor in Michigan about to form an LLC. How can I enter into a contract on behalf of my company as a minor?

My parents are willing to sign for me on any legal documents.

I also have a few other questions:

What extra steps should I take when forming an LLC as a minor?

How do I open a business bank account for my LLC as a minor?

Brent T. Geers
Brent T. Geers answered on Jan 13, 2019

You will need your parents help with this. Other than that, you should be good-to-go.

1 Answer | Asked in Business Law and Gov & Administrative Law for Michigan on
Q: Can an owner of a real estate company notarize real estate documents as the notary public as well?

Notary had an employee sign my document in their absence for a real estate deal. 20,000 Loss as a result of notarys actions

Brent T. Geers
Brent T. Geers answered on Jan 2, 2019

A Notary essentially confirms that a person truly signed a document; they are not saying that the document is legal or proper. If what you're saying is that you never signed the document, and that someone else did without authorization, then it's possible you could file a lawsuit against... Read more »

1 Answer | Asked in Business Law and Tax Law for Michigan on
Q: Question regarding business taxes, amount possibly owed, student loans, garnishment and payment plans

I filed taxes for my business and informed the IRS my business made 11k profit in 2016 and 13k in 2017. I informed them that the gross revenue for my business was 90k in 2016 and 138k in 2017. I dont have expenses to show them as I didnt keep receipts but I did a rough estimate of my expenses to be... Read more »

Trent Harris
Trent Harris answered on Dec 13, 2018

Estimates without documentation are not good enough for the IRS. You need to work with a tax accountant or CPA to reconstruct some sort of paper trail for your expenses. Otherwise, your eligibility for a student loan is going to be the least of your problems. If the IRS denies your deductions for... Read more »

1 Answer | Asked in Business Law and Municipal Law for Michigan on
Q: Starting a cannabis processing company in michigan and in search of answers regarding location, laws and licensing.
Brent T. Geers
Brent T. Geers answered on Dec 10, 2018

Join the crowd! With passage of the new law, we are in the midst of a rush. Opening a new business regulated by new and untested laws can be a recipe for disaster. If you do not have experience in this industry, I would highly suggest you talk with operators in other states with similar laws (e.g.... Read more »

1 Answer | Asked in Employment Law, Business Law, Intellectual Property and Internet Law for Michigan on
Q: ex-employer shared files with me on my personal file sharing/ email account 15 months after I was fired. do I hv 2 gv b?

I was working for a pharmaceutical wholesale distributor in mi. I had a 1 year non compete agreement. I was fired 8-17-2017 and my non compete ended 8-17-2018. Two months after the non compete ended, I noticed that the owner of the company was sharing files with me via onedrive (a file sharing... Read more »

Trent Harris
Trent Harris answered on Oct 7, 2018

Although your noncompete has ended, it is likely that any confidentiality agreement that you had with the company, whether in writing or in a employee manual, still applies after termination of your employment. The information that you mentioned is recognized by Michigan law as trade secrets, and... Read more »

1 Answer | Asked in Business Formation and Business Law for Michigan on
Q: I'm starting an in-home caregiver business and don't know to hire employees or independent contractors.

I would give the "hire" a schedule and work tasks that each senior client requests. I would be running this business in Michigan. The hire would keep track each client visit and turn in to me a completed "task sheet" at the end of each week. I think that is about the extent of... Read more »

Thomas. R. Morris
Thomas. R. Morris answered on Sep 12, 2018

Work for someone else until you learn the ropes. And don’t sign an agreement not to compete.

1 Answer | Asked in Business Formation and Business Law for Michigan on
Q: LLC using a virtual address instead of using home address

I live in an apartment complex (Clinton Township, MI) and recently opened a LLC. I purchased a "virtual address" online - a Troy, MI address.

The Troy address is much more professional looking. It is not a location I can work from, it is just a location that can receive mail for... Read more »

Thomas. R. Morris
Thomas. R. Morris answered on Aug 8, 2018

The Michigan LLC Act requires that the company's books and records be maintained at the registered office or its principal place of business. MCL 450.4213. You could use the Troy address as the registered office even if it is not the principal place of business. Whether you should do so is... Read more »

1 Answer | Asked in Business Law for Michigan on
Q: My girlfriend was threatened with fraud for customers letting her load rewards on her account... can they do this?

The customers let her but the business threatened to fire her and get her for fraud

Thomas. R. Morris
Thomas. R. Morris answered on May 24, 2018

It sounds like a good reason for her employer to fire her. The next questions are: Whether this scheme results in monetary liability to the employer; and whether it might constitute a crime. I don't think that there is enough information for an attorney to definitively answer the question,... Read more »

1 Answer | Asked in Business Law, Contracts and Probate for Michigan on
Q: A probate question involving a small, family owned C Corp - A son inherited shares, but refuses to sign Agreement.

How can there be any compliance with the terms of a mother's will, if the son refuses to sign the Shareholder Agreement, thus (officially) becoming a shareholder?

Richard Michael Gee
Richard Michael Gee answered on Apr 10, 2018

I'm not a Michigan lawyer, and so cannot advise on Michigan law in this regard. I assume your corporation is a Michigan corporation. Normally, however, if there was no requirement in the will that the son agree to a shareholders agreement as a condition for getting his shares, then he is... Read more »

1 Answer | Asked in Business Law and Real Estate Law for Michigan on
Q: I have 25% shares in Michigan company which own apartment building.Apartment bldg was sold by partners without asking me

Is this legal to sell property without my agree to transaction. Can tittle company pursue with closing without my consent.?

Thomas. R. Morris
Thomas. R. Morris answered on Apr 10, 2018

Quite possibly. The question is whether, under the organizational documents for your "company", a 25% owner has the power to veto a sale approved by the majority. Usually, the majority rules. If so, they can close the sale.

1 Answer | Asked in Business Law and Contracts for Michigan on
Q: I gave a check to a facility for my mom to stay there and she stayed there only for a day and they don't refund.

I don't have any other documents. I gave a check to the facility.

Thomas. R. Morris
Thomas. R. Morris answered on Mar 16, 2018

See if you can locate the documents that constitute the contract. If the contract provides that no refund is required to be made, then you may have a difficult time making a case for a refund. If there is no written agreement, particularly none that your mother (or you, if you were the... Read more »

1 Answer | Asked in Contracts, Business Law, Communications Law and Internet Law for Michigan on
Q: Freelance client is months behind payments and requiring digital account access prior to paying. What are my rights?

After six months trying to arrange a payment schedule as promised by client, the client requested more work prior to pay. I declined and offered a payment schedule. Point person misunderstood and responded by dissolving business relationship and demanding digital web/email account access... Read more »

Carrie A. Ward
Carrie A. Ward answered on Feb 28, 2018

Do you have a written contract with the client? If so, you should examine the terms of any default provisions. If you do not have a contract, it is a trickier situation and you probably have the right to terminate the contract without further liability to the client. However, you need to examine... Read more »

1 Answer | Asked in Banking, Business Law, Consumer Law and Bankruptcy for Michigan on
Q: 100 percent net pay taken from bank account right after payday. What can I do?

I was layed off from a job and I had to take a job for less. 1600 a month differance. I could not afford my discover card payments anymore and im on welfare now. I tried on several occasions to make payment arrangements but the refused. They could not garnish my paycheck because years ago i chose... Read more »

Robert Keyes
Robert Keyes answered on Dec 12, 2017

Sounds like a prime candidate for a bankruptcy.

1 Answer | Asked in Business Law for Michigan on
Q: Can a single owner of an LLC cash checks that are written to the business for their own personal use?
Thomas. R. Morris
Thomas. R. Morris answered on Nov 7, 2017

Not legally, if it means bypassing the company books and accounting for the income.

1 Answer | Asked in Contracts, Copyright, Business Law and Intellectual Property for Michigan on
Q: Is what I'm being requested to do legal? And, do I currently have the legal right/rights qualifying me to proceed?

I was asked by someone to make a number of hard(CD)copies of music for them. This request requires me to "rip" the content(given to me in CD format) on a computer and then burn the music onto the requested number of CDs( also provided to me). The requester(the commissioner) has told me... Read more »

Benton R Patterson III
Benton R Patterson III answered on Sep 18, 2017

You may be at risk of committing copyright infringement if the person commissioning the project does not have the appropriate rights. If the commissioner does own the copyright to the content on the CDs, he should be willing to cover any loss you may incur from copying the content (indemnify you).... Read more »

1 Answer | Asked in Business Formation and Business Law for Michigan on
Q: If I create an acronym in order to advertise an event such as an open house do I have to have it licensed or approved?

A group of moms from church with small businesses and homemade crafts want to get together for a vendor show/open house. We can't identify ourselves with the church since it isn't a church sanctioned event, and we aren't from the Chamber of Commerce or any other official... Read more »

Brent T. Geers
Brent T. Geers answered on Sep 6, 2017

That would be fine. Do you plan to hold these or other events again in the future? If so, you might want to give some thought towards incorporating. That would make the name associated with the organization permanent.

If it's a one-time thing, it probably wouldn't be worth the hassle.

1 Answer | Asked in Contracts and Business Law for Michigan on
Q: How to update LLC operational agreement to reflect change of ownership.

I have a LLC operational agreement with my partner and I would like to leave the LLC. We had no income just some costs that we paid and no other activity. He agreed to keep the company for himself and I was told to update the agreement (it allows us to make changes provided both parties will agree... Read more »

Thomas. R. Morris
Thomas. R. Morris answered on Jul 27, 2017

If you are confident in your ability to use the language and in the simplicity of the legal issues, do it yourself. But an attorney who has seen none of the documents and has not had the opportunity to ask questions cannot confidently draft some clauses to be carried off by you. This may well be... Read more »

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