Tag: business

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.

FinCEN Motion to Stay

On Wednesday, December 11, 2024, FinCEN filed its first substantive response to the nationwide injunction ordered by a United States District Court in Texas. The response, a “Motion to Stay Preliminary Injunction Pending Appeal” highlights the time and expense incurred by government in implementing the CTA, including the build out of the online reporting system, community outreach events, and an ad buy in excess of $4.3 million. FinCEN further argues that these efforts have resulted in an “exponential increase” in filed reports, noting that nearly 10 million reports have been filed to date, which is 20 million shy of the estimated number of expected reports.

Businesses and other would-be reporting companies are advised to keep a close eye on these proceedings, as the reporting requirements could be revived and enforcement resumed effective January 1, 2025. If that happens, it could be quite a scramble for the 20+ million reporting companies. Accordingly, FinCEN advises that online the reporting system remains open for “voluntarily” filings.

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

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – October 18, 2024

  1. New Michigan Legislation Requires Dyslexia Screening for Students

Michigan Senate bills 567 and 568 were recently signed into law, which require Michigan schools to screen all kindergarten through 3rd grade students for dyslexia three times a year if they have not been previously screened, as well as students in grades four through 12 who demonstrate behaviors indicating dyslexia.

Why it Matters: The results of the 2024 Michigan Student Test of Educational Progress, released in August, showed that the number of Michigan third-graders who are proficient in reading slid to its lowest point in the 10-year history of the state assessment test.

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  1. 10 Fraser Trebilcock Attorneys Selected for 2024 List of Super Lawyers, Rising Stars in Michigan

Eight Fraser Trebilcock attorneys have been selected for inclusion on the 2024 Michigan Super Lawyers list, with two additional attorneys named “2024 Rising Stars in Michigan.” Those selected include: Michael S. Ashton, Administrative Law; Michael P. Donnelly, Business Litigation; Mark E. Kellogg, Estate & Probate; Danielle Lofton (Rising Star), Personal Injury – General: Plaintiff; Hon. Paula J. Manderfield (Ret.), Alternative Dispute Resolution; Thaddeus E. Morgan, Business Litigation; Melisa M.W. Mysliwiec, Elder Law; Gary C. Rogers, Personal Injury – General: Defense; Elizabeth M. Siefker (Rising Star), Estate & Probate; and Marlaine C. Teahan, Estate & Probate.

Why it Matters: Only 5% of lawyers make the Super Lawyers list, and 2.5% make the “Rising Stars” list. The selection process for Super Lawyers is multi-phased and includes independent research, peer nominations and peer evaluations. In the United States, Super Lawyers Magazine is published in all 50 states and Washington, D.C., reaching more than 13 million readers. Read more.

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  1. Fraser Trebilcock Welcomes Charles L. Lasky to the Firm

Fraser Trebilcock is pleased to announce the hiring of attorney Charles L. Lasky who will work primarily in the firm’s Lansing office. Mr. Lasky has over four decades of experience with a primary focus on real property law: commercial and residential real estate, real estate development, tax incentive financing, tax law, business law: business mergers, sales and acquisitions, business entity formation, corporate law, and financial institution law. His extensive knowledge and experience make him a trusted advisor in complex legal matters.

Why it Matters: His prowess in the legal and business industry should not overshadow his involvement with his community. Mr. Lasky has served on the Board of Directors of various financial institutions in Michigan, Nevada, and Colorado, as well as serving on the Board of Trustees for local organizations such as the Ingham Regional Medical Center, and the Ingham Regional Healthcare Foundation. Learn more.

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  1. Michigan Cannabis Exceeds $266 Million in September ‘24

Cannabis sales surpassed $266 million in September, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $265,861,241.15, while medical sales came in at $1,022,653.82, totaling $266,883,894.97.

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. Business Education Series: Avoid the Five Business Dangers

On Wednesday, October 30, Tom Hamp, Hamp Business Coaching, will delve into the critical issues of poor leadership skills and their impact on organizational success, explore strategies to overcome underperforming sales, and discuss the consequences of ineffective marketing. Additionally, we will examine the importance of robust human capital management and the detrimental effects of financial mismanagement. This seminar is designed to provide practical solutions and actionable insights to help you navigate and resolve these common business problems effectively.

Why it Matters: Learn how to understand your business’s financials, understand profit and loss and use it to your advantage. Also learn how leadership impacts staff and how to manage employees better by increasing leadership skills. Full information and to register.

Related Practice Groups and Professionals 

Charles Lasky
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – October 11, 2024

  1. Michigan Legislature Passes Data Center Tax Break Bill

Last week, the Michigan House passed Senate Bill 237 by a vote of 56 to 41. The bill, if signed into law, would exempt large data centers from Michigan use taxes on equipment through at least 2050.

Why it Matters: With the massive computing needs of artificial intelligence, data center development has exploded across the country. While this bill would likely make Michigan more attractive to data center developers, opponents argue that having more data centers—which consume massive amounts of energy—would undermine Michigan’s clean energy goals.

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  1. Attorney Douglas J. Austin Honored as “Lawyer of the Year” in Real Estate Law in Lansing

Fraser Trebilcock attorney Douglas J. Austin has been named the Best Lawyers in America® 2025 Real Estate Law “Lawyer of the Year” in Lansing. “I am honored to be recognized by Best Lawyers® as a 2025 ‘Lawyer of the Year’ for Real Estate Law in Lansing,” said Mr. Austin.

Why it Matters: This is a high distinction, as only one attorney in each practice area in each community is identified as “Lawyer of the Year.” Mr. Austin has been at the center of real estate law for over 45 years. In addition to being a shareholder at Fraser Trebilcock, he is also the past chair of the firm’s Real Estate Law department. Read more.

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  1. Business Education Series: Avoid the Five Business Dangers

On Wednesday, October 30, Tom Hamp, Hamp Business Coaching, will delve into the critical issues of poor leadership skills and their impact on organizational success, explore strategies to overcome underperforming sales, and discuss the consequences of ineffective marketing. Additionally, we will examine the importance of robust human capital management and the detrimental effects of financial mismanagement. This seminar is designed to provide practical solutions and actionable insights to help you navigate and resolve these common business problems effectively.

Why it Matters: Learn how to understand your business’s financials, understand profit and loss and use it to your advantage. Also learn how leadership impacts staff and how to manage employees better by increasing leadership skills. Full information and to register.

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  1. Fraser Trebilcock Welcomes Charles L. Lasky to the Firm

Fraser Trebilcock is pleased to announce the hiring of attorney Charles L. Lasky who will work primarily in the firm’s Lansing office. Mr. Lasky has over four decades of experience with a primary focus on real property law: commercial and residential real estate, real estate development, tax incentive financing, tax law, business law: business mergers, sales and acquisitions, business entity formation, corporate law, and financial institution law. His extensive knowledge and experience make him a trusted advisor in complex legal matters.

Why it Matters: His prowess in the legal and business industry should not overshadow his involvement with his community. Mr. Lasky has served on the Board of Directors of various financial institutions in Michigan, Nevada, and Colorado, as well as serving on the Board of Trustees for local organizations such as the Ingham Regional Medical Center, and the Ingham Regional Healthcare Foundation. Learn more.

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  1. Michigan Sales Tax Applies to Credit Card Surcharges

Recently, the Michigan Department of Treasury provided guidance on the application of a Michigan sales tax on credit card “surcharges” for businesses. The Michigan Department of Treasury considers the surcharge added to a customer’s bill a “service cost” or “other expense of the seller” under the General Sales Tax Act, making it part of the taxable “sales price” of a transaction.

Why it Matters: Compliance with this guidance is important. Failure to do so may result in underpayment of taxes due to the State of Michigan, potentially subjecting your business to penalties and interest. If you have any questions about how this guidance applies to your specific situation, please contact Paul McCord or your Fraser Trebilcock attorney. Read more.

Related Practice Groups and Professionals 

Real Estate Law | Doug Austin
Charles Lasky
Business & Tax | Paul McCord

Five Stories That Matter in Michigan This Week – October 4, 2024

  1. With Election Looming, it’s Important to be Informed About Michigan’s AI Election Communications Law

A little less than a year ago, in November, 2023, Michigan became the fifth U.S. state to pass a law regulating artificial intelligence use in election communications. The legislation requires a disclaimer on political advertisements created using A.I.-generated content.

Why it Matters: Under the law, a person who knowingly violates this section is guilty of a misdemeanor punishable by a fine of not more than $1,000.00 or imprisonment for not more than 93 days, or both. You can access more information about the law here.

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  1. Michigan Sales Tax Applies to Credit Card Surcharges

Recently, the Michigan Department of Treasury provided guidance on the application of a Michigan sales tax on credit card “surcharges” for businesses. The Michigan Department of Treasury considers the surcharge added to a customer’s bill a “service cost” or “other expense of the seller” under the General Sales Tax Act, making it part of the taxable “sales price” of a transaction.

Why it Matters: Compliance with this guidance is important. Failure to do so may result in underpayment of taxes due to the State of Michigan, potentially subjecting your business to penalties and interest. If you have any questions about how this guidance applies to your specific situation, please contact Paul McCord or your Fraser Trebilcock attorney. Read more.

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  1. Update: Michigan Supreme Court Clarifies its “Adopt and Amend” Minimum Wage and Tipped Worker Ruling

The Michigan Supreme Court recently issued a clarification of its July 31, 2024 ruling on minimum wage and paid sick leave standards. This update, released on September 18, 2024, comes in response to a request from the State of Michigan and its attorney general, addressing several key points of confusion that arose from the original decision.

Why it Matters: Employers should remain vigilant for any further updates or guidance from state authorities. The complex nature of these changes underscores the importance of staying informed and seeking experienced legal counsel to ensure full compliance with Michigan’s evolving wage laws. Read more from your Fraser Trebilcock attorney.

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  1. Business Education Series: Avoid the Five Business Dangers

On Wednesday, October 30, Tom Hamp, Hamp Business Coaching, will delve into the critical issues of poor leadership skills and their impact on organizational success, explore strategies to overcome underperforming sales, and discuss the consequences of ineffective marketing. Additionally, we will examine the importance of robust human capital management and the detrimental effects of financial mismanagement. This seminar is designed to provide practical solutions and actionable insights to help you navigate and resolve these common business problems effectively.

Why it Matters: Learn how to understand your business’s financials, understand profit and loss and use it to your advantage. Also learn how leadership impacts staff and how to manage employees better by increasing leadership skills. Full information and to register.

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  1. Fraser Trebilcock Attorney Secures Victory for Firm Client

Fraser Trebilcock attorney Danielle Lofton was successful in securing a victory for the firm’s client in an insurance matter. A mother of an eight-year-old daughter in Florida had been sued over an accident that occurred in Michigan involving her daughter having caused a serious injury to a cousin while driving an ATV.

Why it Matters: The mother’s insurance company in Florida had gone into insolvency, leaving the mother on her own to defend herself in the civil lawsuit. Although she was initially faced with many roadblocks, Attorney Lofton was successful in convincing the Florida Insurance Bureau to not only settle the underlying claim, but to reimburse the firm’s client for the defense costs she incurred. Read more.

Related Practice Groups and Professionals

Business & Tax | Paul McCord
Labor, Employment & Civil Rights | David Houston
Insurance Law | Danielle Lofton

Corporate Transparency Act Update

As anticipated, the finding by a federal judge in Alabama that the Corporate Transparency Act is unconstitutional has prompted (or at least been echoed by) challenges elsewhere, including in federal courts in Maine and in Michigan.

FinCEN filed its appeal notice in the Alabama suit earlier this month, meaning that a decision by the 11th Circuit Court of Appeals may be forthcoming. The suits in Maine and Michigan were brought in courts covered by the 5th and 6th Circuit Courts of Appeals, which could be the beginning of a series of events that brings the question of the CTA’s constitutionality before the United States Supreme Court as a result of a possible Circuit split. The matter could also make its way to the high Court in response to an injunction issued in one or more of these matters.

Therefore, reporting companies that were formed prior to January 1, 2024, may find it advantageous to continue collecting their beneficial owner information but postpone filing the report until some of these matters have worked through their respective processes. Entities created on or after January 1, 2024, however, will still need to file their reports within 90 days of filing their organizing documents, as their reporting obligations have not been excused.

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

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.

Navigating the Cost and Process of Hiring a Trademark Attorney

In the fast-paced world of business, protecting your brand is paramount. Whether you’re a startup or a large corporation, safeguarding your trademarks is essential for maintaining your identity and reputation in the market. However, navigating the legal intricacies of trademark registration and enforcement can be complex and overwhelming. This is where a skilled trademark attorney can be your greatest ally.

The Importance of Trademark Protection

Before delving into the process and costs of hiring a trademark attorney, let’s underscore the significance of trademark protection. A trademark is more than just a logo or a slogan; it’s the embodiment of your brand’s goodwill and reputation. Trademarks are source identifiers that distinguish your products or services from competitors and help consumers identify and trust your brand.

Without adequate protection, your trademarks are vulnerable to infringement, dilution, and misappropriation, which can result in lost revenue, brand erosion, and legal disputes. By securing federal trademark registration and enforcing your rights, you establish a legal foundation that empowers you to safeguard your brand and its value.

The Role of a Trademark Attorney

Trademark law is a specialized field that requires expertise and experience to navigate effectively. An attorney who specializes in trademark matters can provide invaluable guidance throughout the trademark lifecycle. Their services often include:

  1. Trademark Search and Clearance: Conducting comprehensive searches to ensure your proposed trademark is available for use and registration, minimizing the risk of conflicts with existing trademarks.
  2. Trademark Application: Assisting with the preparation and filing of trademark applications with the United States Patent and Trademark Office (USPTO) or relevant authorities in other jurisdictions, ensuring compliance with legal requirements and maximizing the chances of successful registration.
  3. Prosecution and Responses: Handling communications with trademark examiners, responding to office actions, and overcoming objections to secure trademark registration.
  4. Trademark Enforcement: Monitoring for potential infringement, sending cease-and-desist letters, and pursuing legal action against infringers to protect your trademark rights.
  5. Trademark Portfolio Management: Advising on trademark maintenance, renewal, licensing, and assignment to optimize the value of your trademark assets.

The Cost of Hiring a Trademark Attorney

The cost of hiring a trademark attorney can vary depending on several factors, including the attorney’s experience, the complexity of the matter, and the scope of services required. Trademark attorneys typically offer various fee structures, such as hourly rates, flat fees for specific services, or retainer arrangements.

For trademark registration, the fees may range from a few hundred to several thousand dollars, depending on factors such as the number of classes of goods/services, the complexity of the mark, and whether any office actions or objections are encountered during the process.

While hiring a trademark attorney entails upfront costs, it’s an investment in protecting your brand’s intellectual property rights and mitigating the risk of costly disputes and legal challenges down the line. Moreover, engaging a knowledgeable attorney can streamline the process, enhance the likelihood of successful outcomes, and provide invaluable peace of mind.

Conclusion

In the competitive landscape of modern business, safeguarding your brand is non-negotiable. Hiring a trademark attorney is a strategic decision that empowers you to navigate the complexities of trademark law with confidence and expertise. By enlisting the support of a skilled attorney, you not only protect your trademarks but also lay the foundation for long-term brand success and resilience in the marketplace. If you have any questions, contact attorney Andrew G. Martin or your Fraser Trebilcock attorney.

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

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 – April 28, 2023

  1. Effort to Mandate Hands-Free Phone Use While Driving in Michigan Stalls

Michigan House Bill 4250, the first bill of a three-bill package, failed to gain majority support in the House this week. The proposed legislation would ban the use of hand-held electronic device for drivers.

Why it Matters: 57 House members voted against the bill. One of the major concerns cited is that the penalties proposed to be imposed under the bill would be punitive, including the possibility of a license suspension of up to 90 days for a habitual offender.

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  1. Michigan Cannabis Sales Near $250 Million in March

Cannabis sales nearly hit $250 million in March, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $239,857,322.13, while medical sales came in at $9,816,894.70, altogether totaling $249,674,216.70.

Why it Matters: Marijuana sales remain strong in Michigan, particularly for recreational use. However, there still are significant concerns about profitability and market over-saturation that the industry is contending with.

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  1. May 2023 Business Education Series Program

During the May Business Education Series, Emmie Musser will discuss the challenges faced by businesses in building trust and transparency in a hybrid world, and explore strategies to overcome them including the importance of clear communication and regular updates, as well as the need to establish and maintain strong relationships.

Why it Matters: We will share practical, evidenced based tips on policies, workplace communication norms, and technology that can be used to help mitigate some of the biggest pain points of a hybrid work environment. Learn more.

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  1. Coverage Spoken Here

Commercial litigator and Chair of Fraser Trebilcock’s Real Estate Department, Jared Roberts, along with Shareholder and litigator Ryan Kauffman, successfully defended a mechanical contracting firm in an insurance coverage dispute initiated by its insurer.

Why it Matters: In this instance, in summary, the insurer argued that policy language excluded coverage for events of pollution or efforts by the insured at responding to it. Attorneys Roberts and Kauffman argued that, while some pollution-related events were clearly excluded under the policy here, the exact conduct of the insured in this case was covered, despite the exclusion. The Circuit Court agreed with the insured mechanical contractor and summary disposition was awarded in the contractor’s favor. Learn more.

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  1. CRA Publishes March 2023 Data, Average Price Hovers

Per data released by the Cannabis Regulatory Agency, the average retail price for adult-use sales of an ounce of cannabis is $86.87, a tiny increase from $86.00 in February. This is still a large decrease from March 2022, where the average price was $190.65.

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. Contact our cannabis law attorneys if you have any questions.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Litigation | Jared Roberts
Litigation | Ryan Kauffman

Five Stories That Matter in Michigan This Week – April 21, 2023

  1. Michigan Repeals “Right-to-Work” Law

Governor Gretchen Whitmer signed into law legislation repealing the Freedom to Work law insofar as it applies to private-sector employees. The repealer will be effective as of March 30, 2024.

Why it Matters: When the new law takes effect, it will, for the first time since 2013, be legal for private-sector unions to negotiate and enforce “union security” requiring membership in, or financial support through “Beck Objector” fees, of those unions. Learn more from your Fraser Trebilcock attorney.

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  1. Biden Administration Proposes Title IX Rule Change Prohibiting Schools from Categorically Banning Transgender Athletes from School Sports

The Biden administration proposed a significant change to Title IX regulations via a notice of proposed rulemaking, seeking to prohibit schools from categorically banning transgender athletes from participating in sports consistent with their gender identities. However, the proposal also provides flexibility for K-12 schools and universities to limit transgender student participation in cases where fairness in competition or sports-related injuries might be concerns.

Why it Matters: It’s important to note that this is a “proposed” rule, and therefore won’t take effect unless and until it becomes a final rule. However, K-12 school and higher education institutions leaders would be prudent to begin immediately preparing for the eventuality of the rule becoming final.

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  1. May 2023 Business Education Series Program

During the May Business Education Series, Emmie Musser will discuss the challenges faced by businesses in building trust and transparency in a hybrid world, and explore strategies to overcome them including the importance of clear communication and regular updates, as well as the need to establish and maintain strong relationships.

Why it Matters: We will share practical, evidenced based tips on policies, workplace communication norms, and technology that can be used to help mitigate some of the biggest pain points of a hybrid work environment. Learn more.

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  1. Proposed Legislation Introduced to Reduce Employment Age to 19 in Marijuana Industry

In March, HB 4322 was introduced to allow individuals who are 19 years of age or older to be employed by or volunteer for marijuana establishments.

Why it Matters: Currently, the age for employment in the marijuana industry is set to 21. This legislation proposes to reduce the age to 19, and allow them to manufacture, purchase, distribute and sell marijuana accessories if the individual is acting on behalf of a marijuana establishment.

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  1. Income Tax Reduced for Tax Year 2023

For tax year 2023, the state income tax will be reduced to 4.05%, but will go back up to 4.25% the following year due to a 2015 statute that requires a reduction in the income tax when revenues to the General Fund exceed inflation plus economic growth.

Why it Matters: Individuals should see a slight increase to their take-home pay, but it will not last for long as the income tax rate will go back to 4.25% starting in tax year 2024.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Cannabis Law | Sean Gallagher
Business & Tax | Paul McCord

Michigan Liquor Control Commission Rescinds Half-Mile Rule

The State of Michigan voted earlier this year to rescind a longstanding Administrative Rule which prohibited liquor licensees from operating within a half-mile of another liquor licensee.

The rescission was challenged in the Court of Claims by a trade association. On April 17, 2018 the Court of Claims dismissed the law suit. The Michigan Liquor Control Commission argued that the long-standing Rule was protectionist and anti-competitive.

As of this date, the Court ruling is open to appeal by the trade association. Absent an appeal or further legal or legislative action, the rescission of the Rule will soon be effective.

Fraser Trebilcock Business Tax Attorney Edward J. CastellaniAny questions on the new matter may be addressed to Edward J. Castellani JD, CPA at 517.377.0845 or ecast@fraserlawfirm.com. This summary is for informational purposes and is not to be construed as legal advice.