Single-member limited liability companies are very common in Michigan. Most small business owners operate under this type of business entity. Some are even able to navigate the confusing system that the State of Michigan has set up on their own and been able to file their articles of organization and become a registered limited liability company or LLC with the State. So your personal assets are protected now, right?
Ummmm… Maybe. Look here is the deal: A creditor’s attorney is going look for any hole in your business entities shield and try and expose it, and because of that if all you have done is filed a document with the State and paid a filing fee, he is not just say, “Oh well, I guess there is no way this business owner is personally liable” and move on. So what do you need to do to close up those holes? Here are a few DO’s, DON’T’s, and RECOMMENDATIONS.
Crowdfunding isn’t a revolutionary concept. The idea that a lot of people can pool their resources to make something happen has been around for years. After economic disasters in the early 1900’s many securities laws became very restrictive in the idea that would protect the general public. This has forced people that want to pool resources to get creative with how they do that. Nearly a century later, the world has changed and we are finally seeing those previously restrictive laws are loosening a bit.
On December 30, 2013 Governor Rick Snyder signed the Michigan Invest Locally Exemption (MILE) into law. While this went relatively under the radar for most people, this law puts Michigan on the forefront of the crowdfunding revolution. This new tool for your business to use, while unfamiliar, should definitely be something you look into.