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Detroit Business and Insurance Defense Law Blog

Starting a new business? Do things the right way from the start

One of the most exciting times for Michigan residents is when they are engaging in a new business venture. The potential and opportunity that accompanies the new business venture can be enthralling, but starting a new business can also bring stress and anxiety.

As discussed recently in this blog, part of the stress comes from the fact that there are many decisions that must be made when starting a new business. These decisions can have major long-term consequences for the small business, so those involved in setting up the company want to get it right from the start.

The importance of a well-drafted operating agreement

As discussed last week in this blog, Michigan business owners often have a number of different options to consider when making important decisions for their company. The decision to pursue one alternative over another can end up having major consequences, whether those consequences are felt immediately or later down the road.

For instance, a new business start-up must make a number of decisions involving the structure and operations of the company. While the legal structure for the company is one such decision, there are other issues that must be set in place after this initial decision is made.

What must be in a new business's articles of incorporation?

In the business world, there are often a number of different alternative options that may be considered by Michigan small business owners. Whether it is going with one supplier over another, choosing a different location over another for the company's operations or making choices about hiring different individuals, there is often no shortage of choices available for the owner to make.

These choices begin well before the small business is even up and running. As discussed last week in this blog, one choice that must be made before the business starts operations is what type of business entity will be chosen. There are a number of different factors that play into making this decision, including the business's goals, management style and risk tolerance.

Overcoming the ever-changing obstacles facing small businesses

There is no shortage of challenges facing Michigan small business owners. From anticipating and dealing with changes in the market to ironing out disputes with vendors, employees and customers, to handling legal challenges that may arise, there is rarely a dull day in the office. These challenges are magnified even more for a new business start-up, which may have to break through a number of barriers just to compete with other existing businesses.

The challenges confronting a new business often start with understanding how to operate within the legal system. The law is constantly changing, with new requirements being placed upon businesses all the time.

When contract disputes arise, do you have a plan?

It is important for Michigan residents to be able to take each other at their word. And yet, in the business world, it is often advisable not to simply rely on another person's word, but to have an agreement put in writing in order to preserve the parties' understanding.

Whether agreements are placed in writing or not, a contract dispute can develop between the parties. No matter how clear an agreement may sound, one side may interpret it differently or believe the parties had originally intended for something different to happen.

Can interfering with a contract lead to business litigation?

As discussed recently in this blog, an important part of finding success for many Michigan business owners may turn on having sustainable relationships with other business partners. Often times, these relationships are put down in writing in a formal contract. When disputes arise between different businesses as to the meaning of these contracts, it can lead to litigation.

However, contract disputes may extend beyond simple breach of contract claims, and even beyond the parties to the contract itself. It is not uncommon to have a third party come into play in these disputes, such as a third party that interferes with a contract for their own benefit.

What considerations apply in resolving client contract disputes?

Finding success for Michigan business owners often means being able to see the forest for the trees, despite an ever-changing landscape. This principle is also important to keep in mind when disputes arise between businesses, or between businesses and their clients.

For example, businesses may have a number of client contracts in place with different individuals or entities. Frequently, these contracts do not involve a one-time transaction. Instead, the business and the client develop a relationship over the months and years, and this relationship is a continuing source of income for the business.

Company now one of largest in its industry after acquisition

In order to create a successful business, it is vital that Michigan business owners set goals they want to achieve. These business goals are part of the overall vision for the company's future, which makes it all the more important to set the right goals and execute on this corporate strategy.

For many companies, growth is a prime objective, whether it be growing demand in the local existing market or expanding the company's operations to other locations or markets. In order to accomplish this growth, some companies may find that acquisitions of other companies are the key.

Helping you plan and form a new business

Whether you are seeking to start a new business or purchase a business in Detroit, there are various business formation and planning steps to take. No matter the size of the company or the plans you might have for the future, every business needs to go through a process to ensure it was properly formed. This does not only protect the business itself but also those owning, operating, representing and working for the business.

At Kauffman, Payton & Chapa, we understand the time, effort and investments business owners put into forming and running a business; therefore, our legal team is dedicated to serving and protecting these interests. Our law firm handles legal matters that could impact a business owner from the day of formation until that business is expanded or sold.

Parties may have rights when contracts are breached

Collaboration is often necessary for finding business success. Many Detroit-area businesses choose to work with other entities in order to secure support for their operational and performance needs. However, when businesses look outside of their own walls for services or support they must ensure that they know exactly how their relationships with their collaborators will be formed.

One of the main ways that businesses work with others is through securing contracts. Contracts form a system of legal expectations between parties that are based on the offer and acceptance of particular terms. Contracts can be used to provide businesses with a wide variety of goods and services and each contract should be particularly suited to serve the interests of those subject to its conditions.

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Kaufman Payton & Chapa
200 Kaufman Financial Center
30833 Northwestern Hwy.
Farmington Hills, MI 48334
Phone: (248) 626-5000
Toll Free: (800) 763-4818

Other Offices
40 1/2 East Ferry Street
Detroit, Michigan 48202
(248) 626-5000
(800) 763-4818

Suite 205-C
161 Ottawa Avenue NW
Grand Rapids, Michigan 49503
(616) 459-4200
(800) 763-4818

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