Thinking of opening a business? Not incorporating as a business leaves your personal assets liable in the event that your business is involved in a lawsuit. For most entrepreneurs, you will want to create a limited liability company (LLC) with the state of Michigan. LLCs have the benefit over traditional corporations in that they have a simplified corporate structure and the operators owning the LLC are taxed, rather than the LLC itself, which avoids the problem of double taxation. In order to incorporate as a limited liability company, you will need to file the articles of organization and an operating agreement among the members. You will also need to obtain a federal employer identification number (EIN) for tax payments.
When running your own business, it is inevitable that at some point you will come into conflict with others. Your vendors may have missed an important shipment to you that you need for your business; a creditor says you are late on a payment; you are in a dispute with another company over the interpretation of contract language. Whatever the problem is, you will want competent legal advice on what your next step should be to resolve the problem. If you are a small business owner facing a legal problem, contact us for a free consultation.
If you have any legal questions for your small business, make sure to contact us.