What can a Traverse City business lawyer do for you?

You can choose between setting up an S corporation or a limited liability company. Each has its own merits and choosing the right structure is crucial for the type of taxes you will have to pay.


Every business starts with an idea. Something that you hope will guarantee your financial stability if not make you a millionaire overnight. Once you decide to put this idea into practice, you will face a myriad of practical issues, such as finding a suitable location and understanding what type of business organization you should choose. If you are considering opening a business in Michigan, you should research the best business law attorneys in Traverse City or Detroit and let them sort out the legal stuff.

Let’s say you tell a few friends about your idea and decide to pool your resources and start a business. You are probably all very excited right now and all you can think about is how successful you are going to be. It’s the right attitude, but you risk overlooking important legal aspects and it’s something you might regret later. When you sit with an experienced person Michigan Business Lawyer, they will explain to you the need to make contingency plans for anything that might happen in the future. What if one of you divorces and leaves the state next year? What if one of you becomes incapacitated or just loses faith in this business and wants out? All of these contingency plans should be included in a buy/sell agreement. Developing such a plan does not mean that you do not trust your partners. It’s just the smart thing to do and everyone will feel much safer knowing they’re covered no matter what.

For example, if one of the partners wants to resign or is forced to do so, a purchase/sale agreement will specify the terms. You don’t want to lose control of your business, so you can include provisions for other partners to buy out their shares. You can decide on matters such as a down payment or the number of installments you will need to purchase the outgoing partner’s stock. If you don’t put everything on paper from the start, things could go wrong.

At a time, business lawyers in Detroit, Grand Rapids or Traverse City can help you obtain all the permits you need to comply with local laws, as they have many years of experience in the field and know what regulations apply to each type of business. They can also advise you on the legal structure best suited to your business.

You can choose between setting up an S corporation or a limited liability company. Each has its own merits and choosing the right structure is crucial for the type of taxes you will have to pay.

Photo by Karolina Grabowska from Pexels

You can also set up a non-profit organization or a charity and different laws apply to this type of legal structure.

Your lawyers will also help you define how profits are shared among the different members of your partnership. When you’re just starting out and there’s nothing to share, it’s easy for all of you to be in complete agreement, but things can change drastically once you make a real profit. Seeking legal advice and putting everything on paper is the only way to avoid many unpleasant situations in the future.

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