Five Stories That Matter in Michigan This Week – July 11, 2025

  1. Collateral Consequences: How Criminal Convictions Can Jeopardize Your Professional License

When people think about the consequences of a criminal conviction, they typically focus on the immediate penalties: fines, probation, jail time. But licensed professionals—doctors, nurses, lawyers, teachers, real estate agents, and others—the consequences can extend far beyond the courtroom. A criminal case doesn’t just threaten your freedom. If you’re a licensed professional, it can threaten your livelihood.

Why it Matters: Licensed professionals have more at stake than the average person facing criminal charges, but with early legal counsel from an attorney who understands both criminal law and licensing law and a proactive plan, you can minimize the damage and, in many cases, preserve your ability to work. Don’t make the mistake of waiting until your criminal case is over to start thinking about your license. By then, it may be too late. Read more from your Fraser Trebilcock attorney.

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  1. Supreme Court Restricts Scope of Nationwide Injunctions

In Trump v. CASA, Inc., the U.S. Supreme Court, on June 27, 2025, ruled 6–3 that federal courts cannot issue nationwide injunctions that block executive branch policies for individuals who are not parties to a lawsuit. Writing for the majority, Justice Amy Coney Barrett concluded that the Judiciary Act of 1789 authorizes injunctions only to the extent needed to provide “complete relief” to the plaintiffs before the court.

Why it Matters: This decision significantly limits the reach of federal court rulings and will impact how constitutional and administrative challenges are litigated—especially those seeking to block executive actions.

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  1. Coverage Position vs. Reservation of Rights Letters: What They Are and Why Timeliness Matters

When a claim comes in and there are coverage issues, insurers have two key tools to protect their position: the Coverage Position Letter (CPL) and the Reservation of Rights (RoR) letter. These letters serve related but distinct purposes, and sending them promptly can help prevent miscommunication, disputes, and legal exposure.

Why it Matters: Timely, specific communication helps preserve legal defenses, avoid unintended estoppel, and demonstrate good faith. Whether used separately or together, these letters allow insurers to stay proactive, protect their position, and encourage a more informed dialogue with insureds. If you have questions about CPL or RoRs, or need assistance with drafting one, our insurance team can help. Learn more.

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  1. Fraser Trebilcock Attorneys Facilitate $14 Million Sale for Local Family Business, Continue to Guide Clients Through Historic Wealth Transfer

Fraser Trebilcock attorneys Mark E. Kellogg and Robert D. Burgee recently facilitated the $14 million sale of a local family-owned business, ensuring its legacy of top-notch service will carry on well into the future.

Why it Matters: This successful transaction is a prime example of the expert legal counsel our attorneys provide as the largest wealth transfer in history continues to unfold. Our team represents a diverse range of clients—from purchasers and sellers to lenders and directors—in all facets of business transactions, including stock and asset acquisitions, corporate restructuring, mergers, and reorganizations. In June alone, Fraser attorneys closed business transactions totaling nearly $20 million, with deal values ranging from $200,000 to $14 million, highlighting our team’s dexterity in delivering lasting results for our clients. Learn more.

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  1. Michigan Warns of Fraudulent Annual Statement Fee Scam Targeting Corporations and LLCs

Michigan’s Department of Licensing and Regulatory Affairs is warning businesses about a scam from “New Business Filing LLC,” a non-governmental entity sending official-looking solicitations demanding annual statement fees from Michigan corporations and limited liability companies. The fraudulent mailings imply that entities must complete an annual statement regardless of whether they have already filed their required documents with the state. LARA Director Marlon I. Brown emphasized that these deceptive mailings are not from the state agency, even though they appear official, and advised businesses to disregard them and only respond to correspondence directly from LARA.

Why it Matters: This scam specifically targets Michigan business entities and could result in unnecessary payments to fraudulent operators while creating confusion about legitimate state filing requirements. If you require assistance regarding your business’ corporate formation and filing issues, please contact a Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Criminal Law | Robert Andretz
Licensing & Regulatory | Robert Andretz
Insurance | Dakota Larson
Mergers & Acquisitions | Mark Kellogg
Mergers & Acquisitions | Robert Burgee

Five Stories That Matter in Michigan This Week – June 27, 2025

  1. Supreme Court Eliminates Heightened Standard for Student Disability Discrimination Claims

The U.S. Supreme Court unanimously ruled in A.J.T. v. Osseo Area Schools that students with disabilities suing for damages under the Americans with Disabilities Act and Section 504 of the Rehabilitation Act need not prove “bad faith” or “gross misjudgment” by their school district. The case involved a teenager with severe epilepsy whose school refused to accommodate her afternoon-only attendance schedule, prompting her parents to sue for discrimination.

Why it Matters: This decision eliminates a circuit split that created inconsistent legal standards across the country and makes it significantly easier for students with disabilities to pursue successful discrimination claims against schools.

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  1. Collateral Consequences: How Criminal Convictions Can Jeopardize Your Professional License

When people think about the consequences of a criminal conviction, they typically focus on the immediate penalties: fines, probation, jail time. But licensed professionals—doctors, nurses, lawyers, teachers, real estate agents, and others—the consequences can extend far beyond the courtroom. A criminal case doesn’t just threaten your freedom. If you’re a licensed professional, it can threaten your livelihood.

Why it Matters: Licensed professionals have more at stake than the average person facing criminal charges, but with early legal counsel from an attorney who understands both criminal law and licensing law and a proactive plan, you can minimize the damage and, in many cases, preserve your ability to work. Don’t make the mistake of waiting until your criminal case is over to start thinking about your license. By then, it may be too late. Read more from your Fraser Trebilcock attorney.

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  1. Michigan Cannabis Exceeds $272 Million in May ‘25

Cannabis sales surpassed $272 million in May 2025, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $272,065,398.45, while medical sales came in at $553,315.50, totaling $272,618,713.95.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Senate Bill Introduced Aimed at Amending the Truth in Renting Act

Senate Bill 373 was recently introduced as legislation aimed at amending the Truth in Renting Act, which would prohibit rental agreements from including a provision that imposes an additional charge or fee on allowable methods of paying rent, as well as specify that there be made available at least one fee-free payment method.

Why it Matters: According to officials, “Under the bill, a rental agreement also could not include a provision that imposed an additional charge or fee on all methods for the payment of rent allowed under the rental agreement. The bill specifies that if a rental agreement allowed for more than one method of payment of rent, the agreement would have to include a provision that allowed at least one payment of rent to be used without the tenant incurring an additional charge or fee.”

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  1. Coverage Position vs. Reservation of Rights Letters: What They Are and Why Timeliness Matters

When a claim comes in and there are coverage issues, insurers have two key tools to protect their position: the Coverage Position Letter (CPL) and the Reservation of Rights (RoR) letter. These letters serve related but distinct purposes, and sending them promptly can help prevent miscommunication, disputes, and legal exposure.

Why it Matters: Timely, specific communication helps preserve legal defenses, avoid unintended estoppel, and demonstrate good faith. Whether used separately or together, these letters allow insurers to stay proactive, protect their position, and encourage a more informed dialogue with insureds.

Related Practice Groups and Professionals

Criminal Law | Robert Andretz
Licensing & Regulatory | Robert Andretz
Cannabis Law | Sean Gallagher
Real Estate | Jared Roberts
Insurance | Dakota Larson

Five Stories That Matter in Michigan This Week – June 13, 2025

  1. Supreme Court Eliminates Higher Burden for “Reverse Discrimination” Claims

The U.S. Supreme Court unanimously ruled in Ames v. Ohio Department of Youth Services that employees claiming workplace discrimination face the same burden of proof regardless of whether they belong to a majority or minority group. The decision overturned the “background circumstances” rule that required straight employees and other majority group members to meet a higher standard when proving discrimination under Title VII.

Why it Matters: This ruling creates a uniform standard for Title VII discrimination cases and may lead to increased reverse discrimination claims in the workplace. Employers should prepare for potential challenges to diversity, equity, and inclusion initiatives, as majority group members can now more easily assert discrimination claims without having to prove unusual circumstances that suggest their employer discriminates against the majority.

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  1. Right to Withhold Rent for Repairs Bills Head to Senate Floor

Legislators have introduced the “Tenant Empowerment Package” which includes Senate Bills 19 through 22. In the package, it would require landlords to begin repairs on defective appliances or hazardous situations within 24 hours upon written notice from the renter. If the repairs have not started within 24 hours, the renter has the ability to withhold rent until the repairs are done, or they’re able to start repairs themselves, and deduct the costs from their rent.

Why it Matters: The bills would have a direct fiscal impact on the State, local governments, or local court systems. They could reduce evictions for local systems, which would have indirect benefits related to homelessness, productivity, and tax revenue.

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  1. Michigan CRA Publishes April ’25 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in April 2025 was $62.23, a decrease from $65.14 in March 2025. This is a decrease from April 2024, where the average price was $86.61.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Duty to Defend and Indemnify

When an insurer receives a claim, the question of whether it will defend and/or indemnify is easier to answer in some cases than others. When interpreting an insurance policy, there are two questions involved: (1) Does the policy provide coverage?; and (2) If the policy provides coverage, is there an exclusion that negates the coverage?

Why it Matters: Although an insurer may deny coverage and in turn, decline to provide a defense, it should not do so unless it is very clear that none of the allegations are covered under the policy at issue. It is also important for insurers to consider whether the policy language might be governed by the laws of a different state. Read more from your Fraser Trebilcock attorney.

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  1. Ensuring Your Business is Protected Through Copyright

Whether it is a symbol that you use for branding or a formula that makes your product unique, your intellectual property assets need to be protected. Some of the most recognizable forms of intellectual property fall under copyrights, patents, and trademarks.

Why it Matters: A copyright is the exclusive legal protection that covers an original work of authorship, and it can be difficult to enforce your copyright if the work is not registered with the U.S. Copyright Office. Our copyright law attorneys can help you think through the issues and take the actions necessary to ensure your work and business are protected. Learn more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Real Estate | Jared Roberts
Cannabis Law | Sean Gallagher
Insurance | Dakota Larson
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – June 6, 2025

  1. IRS Announces 2026 Health Plan Contribution Limits

On May 1, 2025, the IRS released Revenue Procedure 2025-19, announcing modest inflation-adjusted increases to health savings account contribution limits and other health plan parameters for 2026. Key changes include HSA contribution limits rising to $4,400 for self-only coverage (up from $4,300) and $8,750 for family coverage (up from $8,550), while high-deductible health plan minimum deductibles increased to $1,700 for individuals and $3,400 for families.

Why it Matters: These increases are smaller than previous years’ adjustments, reflecting current inflation trends that directly impact employee benefit planning. Employers should review their 2026 benefit designs and employee communications to incorporate these new limits, ensuring compliance and maximizing tax-advantaged savings opportunities for their workforce.

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  1. Duty to Defend and Indemnify

When an insurer receives a claim, the question of whether it will defend and/or indemnify is easier to answer in some cases than others. When interpreting an insurance policy, there are two questions involved: (1) Does the policy provide coverage?; and (2) If the policy provides coverage, is there an exclusion that negates the coverage?

Why it Matters: Although an insurer may deny coverage and in turn, decline to provide a defense, it should not do so unless it is very clear that none of the allegations are covered under the policy at issue. It is also important for insurers to consider whether the policy language might be governed by the laws of a different state. Read more from your Fraser Trebilcock attorney.

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  1. Ensuring Your Business is Protected Through Copyright

Whether it is a symbol that you use for branding or a formula that makes your product unique, your intellectual property assets need to be protected. Some of the most recognizable forms of intellectual property fall under copyrights, patents, and trademarks.

Why it Matters: A copyright is the exclusive legal protection that covers an original work of authorship, and it can be difficult to enforce your copyright if the work is not registered with the U.S. Copyright Office. Our copyright law attorneys can help you think through the issues and take the actions necessary to ensure your work and business are protected. Learn more.

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  1. Michigan Cannabis Exceeds $270 Million in April ’25

Cannabis sales surpassed $270 million in April 2025, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $269,957,758.67, while medical sales came in at $515,226.93, totaling $270,472,985.60.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Gain Peace of Mind Through Life’s Toughest Obstacles

When facing charges of any kind, criminal law experience matters most. You need someone on your side with inside knowledge to provide guidance for a solid defense, and someone who understands the extreme sensitivity of criminal law cases and act in a timely manner to resolve issues.

Why it Matters: Our attorneys have extensive experience representing individuals and businesses in all stages of criminal proceedings. We will keep you informed of your best options and strategies every step of the way, finding a resolution with a foundation that will help you move forward. Learn more.

Related Practice Groups and Professionals

Insurance | Dakota Larson
Intellectual Property | Andrew Martin
Cannabis Law | Sean Gallagher
Criminal Law | Robert Andretz

Five Stories That Matter in Michigan This Week – May 30, 2025

  1. Michigan Proposes Real-Time Cannabis Business Monitoring Requirements

Michigan regulators are considering new adult-use cannabis regulations that would require businesses to provide real-time access and live monitoring through web-based portals, according to MLive. The proposed rules would mandate that cannabis operations maintain comprehensive records of sales, shipping, and access activities, while storing at least 30 days of footage that must be readily available to regulators upon request.

Why it Matters: These enhanced monitoring requirements represent a significant expansion of regulatory oversight that could increase compliance costs and operational complexity for cannabis businesses.

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  1. Michigan Cannabis Industry Seeks Regulatory Reform Amid Market Crisis

Michigan’s cannabis industry continues to struggle with profitability, with flower prices falling 77% since legalization in 2019, dropping from $512 to under $65 per ounce. At a recent Michigan Senate Regulatory Affairs Committee hearing, Cannabis Regulatory Agency Director Brian Hanna warned of industry consolidation and business failures without significant changes. The hearing identified three critical areas for reform: implementing a moratorium on new grower licenses, addressing unregulated hemp-derived THC products, and reducing excessive regulatory fines.

Why it Matters: With nearly 40,000 industry employees and more than $300 million generated in state tax revenue, the stakes for Michigan’s cannabis market are high. According to testimony at the hearing, without these proposed reforms, the industry faces potential widespread consolidation, reduced product variety, and diminished opportunities for social equity licensees, among other implications.

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  1. NLRB Establishes Standard for Workplace Rules

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. Under the previous standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights.

Why it Matters: Workplaces may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests. Read more from your Fraser Trebilcock attorney.

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  1. Fraser Trebilcock Attorneys Secure Victory for Firm Client

The litigation team of ​Thaddeus E. Morgan and ​Andrew G. Martin obtained dismissal of a case for the firm’s client.

Why it Matters: The litigation team obtained dismissal of a case alleging assumption of a contract as part of a business acquisition rejecting plaintiff’s claim of the “mere continuation” doctrine. Learn more.

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  1. Thaddeus E. Morgan Recognized as a ‘Michigan Go To Lawyer’ for Construction Law in 2025 by Michigan Lawyers Weekly

Fraser Trebilcock Shareholder Thaddeus E. Morgan has been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer” in 2025 for Construction Law. “I am honored to have been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer’ for Construction Law,” said Mr. Morgan.

Why it Matters: Mr. Morgan is President of Fraser Trebilcock and has over 30 years of litigation experience in both state and federal courts in a wide variety of areas, including, commercial and business disputes, employment and shareholder litigation, construction, health care, real estate, insurance, and intellectual property. He is a former assistant prosecutor and assistant attorney general. Read more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Labor, Employment & Civil Rights | David Houston
Litigation | Thad Morgan
Litigation | Andrew Martin
Construction Law | Thad Morgan

Five Stories That Matter in Michigan This Week – May 23, 2025

  1. Thaddeus E. Morgan Recognized as a ‘Michigan Go To Lawyer’ for Construction Law in 2025 by Michigan Lawyers Weekly

Fraser Trebilcock Shareholder Thaddeus E. Morgan has been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer” in 2025 for Construction Law. “I am honored to have been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer’ for Construction Law,” said Mr. Morgan.

Why it Matters: Mr. Morgan is President of Fraser Trebilcock and has over 30 years of litigation experience in both state and federal courts in a wide variety of areas, including, commercial and business disputes, employment and shareholder litigation, construction, health care, real estate, insurance, and intellectual property. He is a former assistant prosecutor and assistant attorney general. Read more.

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  1. Fraser Trebilcock Attorneys Secure Victory for Firm Client

The litigation team of ​Thaddeus E. Morgan and ​Andrew G. Martin obtained dismissal of a case for the firm’s client.

Why it Matters: The litigation team obtained dismissal of a case alleging assumption of a contract as part of a business acquisition rejecting plaintiff’s claim of the “mere continuation” doctrine. Learn more.

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  1. NLRB Establishes Standard for Workplace Rules

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. Under the previous standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights.

Why it Matters: Workplaces may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests. Read more from your Fraser Trebilcock attorney.

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  1. Organizing Your Business: A Step-by-Step Guide for Michigan LLCs

Starting a business involves critical choices that shape your success and safeguard your financial future. In Michigan, forming an LLC offers entrepreneurs a powerful way to protect personal assets, simplify taxation, and maintain management flexibility.

Why it Matters: Forming and maintaining an LLC in Michigan provides valuable liability protection and flexibility for your business. By maintaining proper governance, your LLC can serve as a solid foundation for your business ventures. Read more from your Fraser Trebilcock attorney.

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  1. Navigating Bad Faith Claims: What Defense Attorneys Need to Know

Under the Michigan Uniform Trade Practices Act, an insurer is liable for penalty interest if it fails to timely pay a claim. “The purpose of the penalty is to penalize insurers for dilatory practices in settling meritorious claims, not to compensate a plaintiff for delay in recovering benefits to which he or she is ultimately determined to be entitled.”

Why it Matters: While it is important for insurers to train their claims professionals in background knowledge regarding bad faith law, including the factors above, there is no need to lead with fear. The biggest takeaway is that the opposite of “bad faith” is “good faith.” Therefore, claims professionals should be encouraged to utilize their best judgment with the information at the given time. Read more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Construction Law | Thad Morgan
Litigation | Thad Morgan
Litigation | Andrew Martin
Business & Tax | Andrew Martin
Labor, Employment & Civil Rights | David Houston
Insurance | Dakota Larson

NLRB Establishes New Standard for Workplace Rules – What Employers Need to Know

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. This decision overturns the previous standard set by Boeing Co. (2017), later refined in LA Specialty Produce Co. (2019).

Case Background

In Stericycle, the NLRB explained that the primary problem with the Boeing and LA Specialty Produce standard was that it permitted employers to adopt overbroad work rules that chill employees’ exercise of their rights under Section 7 of the Act. Under that standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights. The NLRB also rejected Boeing’s categorical approach to work rules, under which certain types of rules were held to be always lawful, regardless of how they were drafted or what interests a particular employer cited in defense of the rule.

Key Changes

      • A workplace rule is now presumptively unlawful if it has a reasonable tendency to chill employees from exercising their rights.
      • Employers may counter the presumption by proving the rule advances a legitimate and substantial business interest and that they’re unable to advance that interest with a more narrowly tailored rule.

What This Means for Employers

Following this, the NLRB is in favor of case-specific consideration of work rules. Employers may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions.


Attorney David J. HoustonFraser Trebilcock Shareholder Dave Houston has over 40 years of experience representing employers in planning, counseling, and litigating virtually all employment claims and disputes including labor relations (NLRB and MERC), wage and overtime, and employment discrimination, and negotiation of union contracts. He has authored numerous publications regarding employment issues. You can reach him at 517.377.0855 or dhouston@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – May 16, 2025

  1. Federal Government Sues to Block Michigan’s Climate Lawsuits Against Fossil Fuel Companies

The federal government has filed a preemptive lawsuit against Michigan to prevent the state from pursuing litigation against fossil fuel companies for climate change damages. Michigan had announced plans to join approximately similar lawsuits already pending in courts nationwide but was sued by the federal government before it could file.

Why it Matters: This unusual procedural move specifically references President Trump’s recent executive order on American energy production that criticizes climate-focused state actions.

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  1. Governor Whitmer Signs Two Bills Into Law Revolving Around Financial Transparency for Public Officers and Candidates

Michigan Governor Gretchen Whitmer signed Senate Bills 99 and 100 into law this week, which focused on increasing transparency within the Michigan legislature, requiring public officers and candidates to report and specify any unearned income and/or securities they receive.

Why it Matters: Senate Bill 99 amends the Public Officers Financial Disclosure Act, including specifying that reporting requirements for unearned income and securities would have to include the origin and address of the sources and securities, and require the public officer to include the name of the lobbyist or lobbyist agent that made the gift payment. Senate Bill 100 amends the Candidate for Office Financial Disclosure Act, including specifying the reporting requirements for unearned income and securities would have to include the origin and address of the sources and securities.

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  1. Organizing Your Business: A Step-by-Step Guide for Michigan LLCs

Starting a business involves critical choices that shape your success and safeguard your financial future. In Michigan, forming an LLC offers entrepreneurs a powerful way to protect personal assets, simplify taxation, and maintain management flexibility.

Why it Matters: Forming and maintaining an LLC in Michigan provides valuable liability protection and flexibility for your business. By maintaining proper governance, your LLC can serve as a solid foundation for your business ventures. Read more from your Fraser Trebilcock attorney.

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  1. Navigating Bad Faith Claims: What Defense Attorneys Need to Know

Under the Michigan Uniform Trade Practices Act, an insurer is liable for penalty interest if it fails to timely pay a claim. “The purpose of the penalty is to penalize insurers for dilatory practices in settling meritorious claims, not to compensate a plaintiff for delay in recovering benefits to which he or she is ultimately determined to be entitled.”

Why it Matters: While it is important for insurers to train their claims professionals in background knowledge regarding bad faith law, including the factors above, there is no need to lead with fear. The biggest takeaway is that the opposite of “bad faith” is “good faith.” Therefore, claims professionals should be encouraged to utilize their best judgment with the information at the given time. Read more from your Fraser Trebilcock attorney.

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  1. NLRB Establishes Standard for Workplace Rules

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. Under the previous standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights.

Why it Matters: Workplaces may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests. Read more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Insurance | Dakota Larson
Business & Tax | Andrew Martin
Labor, Employment & Civil Rights | David Houston

Organizing Your Business: A Step-by-Step Guide for Michigan LLCs

Starting a business involves critical choices that shape your success and safeguard your financial future. In Michigan, forming an LLC offers entrepreneurs a powerful way to protect personal assets, simplify taxation, and maintain management flexibility. Here is a brief summary of some of the key benefits of the LLC structure: 

    1. Liability Protection: An LLC creates a separation between business and personal assets, protecting members’ personal property from business liabilities. This means creditors generally cannot seize your personal assets to satisfy business debts. 
    2. Tax Flexibility: By default, LLCs – considered “pass through” entities – don’t pay federal taxes directly. Instead, LLC members pay taxes for the LLC on their personal tax returns.  
    3. Management Flexibility: LLCs can be either member-managed (all owners participate in operations) or manager-managed (designated managers handle day-to-day operations).

This guide breaks down the steps needed to organize and manage an LLC effectively, helping you establish a solid foundation for long-term business growth and security. 

What Distinguishes an LLC from Other Structures? 

When choosing a business structure in Michigan, many entrepreneurs opt for LLCs due to their unique blend of protection and flexibility. Unlike sole proprietorships that offer no separation between personal and business assets, an LLC creates a legal shield that protects your personal property from business liabilities while maintaining the same pass-through taxation benefits. Compared to corporations, LLCs free you from many formalities like mandatory board meetings and minutes, while avoiding the double taxation issue that impacts traditional corporations.

Michigan recognizes both single-member and multi-member LLCs, treating them virtually identically for formation purposes. Whether you’re a solo entrepreneur seeking control and simplicity or a team dividing ownership and responsibilities among multiple members, the LLC structure adapts to your needs. Single-member LLCs enjoy sole decision-making authority and straightforward sole proprietorship-like taxation, while multi-member LLCs distribute ownership, split profits according to agreed terms, and are taxed like partnerships by default.

The management structure you choose further tailors your LLC to your specific business needs. In the default member-managed structure, all owners actively participate in day-to-day operations and can legally bind the company in contracts and agreements. For businesses preferring separation between ownership and management, the manager-managed option allows designated individuals (whether members or not) to handle operations. This flexibility makes LLCs particularly attractive for entrepreneurs who want protection without excessive corporate formality.

Although Michigan doesn’t legally require an operating agreement, working with your attorney to create one strengthens your liability protection and clarifies how your business will function – from ownership percentages and capital contributions to profit distribution and decision-making protocols. This internal document becomes especially crucial for multi-member LLCs to prevent misunderstandings and establish clear procedures for everything from routine operations to member changes and potential dissolution. 

Step-by-Step Process for Creating a Michigan LLC 

Step 1: Choose a Name for Your LLC 

Michigan requires that your business name be “distinguishable” from other businesses in the state. Your Michigan LLC name must include “limited liability company,” “limited company,” “LC,” or “LLC.” You cannot use words like “corporation” that suggest another type of entity.

To check name availability, you can search the Michigan business name database through the Department of Licensing and Regulatory Affairs (LARA) website. 

Step 2: Designate a Registered Agent 

A registered agent is the person or business you appoint to receive and forward important legal and tax documents. Michigan requires your registered agent to have a physical address (no P.O. boxes) in Michigan and be available during normal business hours.

Step 3: File Articles of Organization

The document required to form an LLC in Michigan is called the Articles of Organization. You can file online, by mail, or in person with the Michigan Department of Licensing and Regulatory Affairs. The filing fee is $50 (as of April 2025). 

Your Articles of Organization must include: 

    • LLC name 
    • Purpose of the LLC 
    • Registered agent information 
    • Whether the LLC will be member-managed or manager-managed (if manager-managed) 
    • Name and signature of the organizer 

Step 4: Create an Operating Agreement

Again, while Michigan doesn’t legally require an operating agreement, it’s strongly recommended to create one to establish how you’ll run your LLC. This is especially important for single-member LLCs to help prove the LLC is being operated as a separate legal entity in court, and for multi-member LLCs to define rights and obligations among business owners.

Step 5: Obtain an EIN (Employer Identification Number)

An EIN is also called a Federal Tax ID Number or Federal Employer Identification Number. If your LLC has more than one member, it must obtain an EIN from the IRS, even if it has no employees. Single-member LLCs may use the owner’s Social Security Number instead, but an EIN is recommended for privacy.

Step 6: Open a Business Bank Account

Keep your personal and business finances separate by opening a dedicated business bank account. This helps maintain the liability protection of your LLC by showing it’s truly a separate entity.

Managing Your Michigan LLC

All LLCs doing business in Michigan must file an annual statement with LARA by February 15th each year. The filing fee is $25 (as of April 2025). If you form your LLC after September 30, you don’t need to file a statement the following February. 

Here are a few best practices for managing your LLC, mitigating risks, and remaining compliant on an ongoing basis:  

    1. Maintain Separation: Keep business and personal finances strictly separate with dedicated accounts and records. 
    2. Document Decisions: Record major business decisions, especially for multi-member LLCs. 
    3. Update Your Operating Agreement: Review and update your operating agreement as your business evolves. 
    4. Keep Good Records: Maintain detailed financial records, meeting minutes, and membership changes. 
    5. Stay Compliant: File annual statements on time and keep your registered agent information current. 
    6. Consider Professional Help: Consult with an attorney periodically to ensure ongoing compliance. 

Conclusion

Forming and maintaining an LLC in Michigan provides valuable liability protection and flexibility for your business. By following the steps outlined in this guide and maintaining proper governance, your LLC can serve as a solid foundation for your business ventures.

Remember that while this guide provides a comprehensive overview, consulting with a Michigan business attorney for your specific situation is always recommended, especially for complex ownership structures or specialized industries.


This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions. When it matters in Michigan, we are the trusted legal advisors for businesses and individuals.


Andrew G. Martin is an experienced registered patent attorney with history working in the automotive, electrical, and agricultural industries. He regularly advises startups and small businesses on the patent and trademark prosecution process, assisting clients from start to finish. You can reach him at 517.377.0834 or at amartin@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – May 9, 2025

  1. Michigan Proposes Ban on Noncompete Agreements

Earlier this year, Michigan legislators introduced House Bill 4040, which aims to prohibit employers from implementing or enforcing noncompete clauses in employment contracts. The proposed legislation contains narrow exceptions only for situations involving the sale of business ownership interests or when an employee is responsible for selling the majority of a company’s assets.

Why it Matters: The proposed legislation comes amid significant national attention on noncompete agreements following the FTC’s attempted ban and the subsequent nationwide injunction blocking its enforcement. This has prompted many states to reconsider their noncompete policies. If passed, Michigan would join a select group of states including California, Minnesota, North Dakota, and Oklahoma. We will continue to monitor for new developments regarding this legislation.

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  1. Navigating Through Life’s Toughest Obstacles

When facing charges of any kind, criminal law experience matters most. You need someone on your side with inside knowledge to provide guidance for a solid defense. We have extensive experience representing individuals and businesses in all stages of criminal proceedings.

Why it Matters: Helping clients for more than two decades, Rob is an experienced criminal defense and professional licensing attorney who has successfully represented clients in both state and federal courts in felony and misdemeanor cases in more than 50 counties across the state of Michigan. He is passionate about what he does, and, understanding the direct and collateral consequences that a criminal conviction or professional licensing sanction can bring, he compassionately works with his clients to focus on what matters most to them. Learn more.

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  1. Michigan’s First Quarter Cannabis Sales in 2025 Hits $766 Million

In Michigan, total first quarter sales in 2025 for adult-use and medical cannabis totaled $766,198,323.48.

Why it Matters: Though there are reports of declining sales of cannabis starting in 2025, the prices of cannabis and cannabis-related products continue to decrease and make consumers happy. Growers on the other hand are seeing profits decrease.

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  1. NLRB Establishes Standard for Workplace Rules

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. Under the previous standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights.

Why it Matters: Workplaces may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests.

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  1. Ensuring Your Business is Secure Through Patent Protection

Whether it is a symbol that you use for branding or a formula that makes your product unique, your intellectual property assets need to be protected. Some of the most recognizable forms of intellectual property fall under copyrights, patents, and trademarks.

Why it Matters: A patent is a legal monopoly for protecting a utilitarian device, system, machine, composition or process. When should you file? Timing is of the essence to prevent a competitor from winning the race to the Patent Office. Our patent law attorneys can help you think through the issues and take the actions necessary to ensure your work and business are protected. Learn more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Criminal Law | Robert Andretz
Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin