Launching a new business is an exciting venture, especially in the vibrant communities of the Great Lakes Bay Region. From the entrepreneurial spirit in Saginaw to the growing commercial districts in Midland and Bay City, opportunities abound for startups and small businesses. However, to ensure long-term success and avoid costly legal pitfalls, it is essential to take a proactive approach to legal planning.

Here are key legal steps every aspiring business owner should take:

1. Choose the Right Business Structure
Your business entity type: LLC, S-Corp, C-Corp, or sole proprietorship will impact your taxes, liability, and management structure. For example, forming an LLC offers liability protection and operational flexibility, which is ideal for many small business owners in cities like Birch Run and Chesaning.

2. Register with the State of Michigan
All businesses must register with the Michigan Department of Licensing and Regulatory Affairs (LARA). This includes filing Articles of Organization or Incorporation and applying for a state tax ID.

3. Draft Foundational Legal Documents
Documents such as an Operating Agreement or Bylaws are essential for setting internal rules and resolving future disputes. These documents clarify decision-making authority and ownership percentages, vital for partnerships and multi-member LLCs.

4. Obtain Necessary Licenses and Permits
Depending on your industry and location, you may need local permits from the city of Saginaw, Bay City, or other municipalities. A legal professional can help ensure you’re fully compliant.

5. Protect Intellectual Property
If your business has a unique name, logo, or product, consider trademark protection. This helps safeguard your brand from infringement.

6. Understand Employment Law
If you plan to hire employees, you must comply with both federal and Michigan employment laws. Employee handbooks, wage rules, and anti-discrimination policies should be in place from day one.

At Garske, Hewitt & Rodenbo, our business law attorneys guide local entrepreneurs through every stage of the formation process. We help ensure your dream business is built on a solid legal foundation.