Luckily for new businesses in the Grand Rapids, Michigan, area, that might not be a game-stopping problem thanks to a wealthy member of the community. The man recently launched a concept called Start Garden, which is essentially $15 million set aside to help fuel up to 100 business start-up ideas in the area every year.
]]> Entrepreneurs will finally have access to the sometimes-lofty funds to make their ideas a reality. All those prospective business owners have to do is pitch their idea to the fund's owners via their website. If administrators at Start Garden think the idea sounds promising, they will invest an initial $5,000 in the project along with laying down stipulations for the business owner. That business owner is also responsible to update Start Garden officials on their status every 90 days.Based on those updates and how the project is progressing, Start Garden might consider investing an addition $20,000 into the business. Investment money can eventually total to up to $500,000, which would no doubt aid any business start-up achieve its goals.
While the panel of officials at Start Garden will confer and hand-select an idea each week, the public is also able to vote for a deserving start-up each week as well. However, by Start Garden forking over the money, they are also entitled to equity shares within the company. The details over those arrangements are still being hashed out.
With this recent program, Grand Rapids continues to solidify its reputation as a breeding ground for entrepreneurs. Just remember, when forming a business, there are many forms and documents that must be filed to make that business legally viable. It is always wise to consult business formation experts to make sure your business is built on a solid foundation.
Source: MLive.com, "Rick DeVos unveils Start Garden, details plan to fuel West Michigan startups, innovation with $15 million," Garret Ellison, April 26, 2012
]]>This could ease their company's pocketbook because many consumers are already familiar with the trademarks and have possibly come to trust them. However, there is still plenty of work left to be done. Many of these brands have been dead or ailing for a long time and will need a boost in order to thrust themselves back into the consumer culture.
]]> A lawyer specializing in intellectual property pointed out that when a trademarked brand is not used for three consecutive years, it is considered abandoned under law. Fellow business owners can register these trademarks and use them in their own operations.Many entrepreneurs are trying to locate those that own the rights to former brands and strike deals with them. One website dedicated to classic brands in American history has devoted a section to buying and selling abandoned brands.
While inheriting a formerly-successful brand could be a sound business move, many entrepreneurs are driven by the sentimental value of the brands they used to love. For instance, one man invested $1 million into reviving the Seafood Shanty chain of restaurants.
After the restaurant chain broke down in the 1990s, the man just opened his first location of the newly-revived Seafood Shanty in February. He remembered going on his first date with his wife to the restaurant in 1982.
Another man forked over $1,200 to buy the National Premium beer trademark, which he fondly remembered before it was discontinued in the 1990s. He is now trying to locate the original recipe for the beer to start brewing it again. He already has two distributors lined up so he can sell the beer.
Source: Wall Street Journal, "Old brands get second shot," Angus Loten and Emily Maltby, April 18, 2012
]]>Even Supreme Court justices voiced their concerns over the case recently, saying that it might be considered somewhat of a waste of time.
]]> While the justices did not come out and say that the case carried no merit, they had a hard time justifying shutting down a casino that had already opened. This was especially true because the man that brought the lawsuit waited three years to do so, long after plans had been announced and the building has been constructed, the justices said.A man had filed the lawsuit to have the casino shut down. He argued that the tribe that opened it -- a local band of Pottawatomi Indians -- was not recognized by the federal government when the Indian Reorganization Act was passed in 1934.
The tribe obtained the land through a trust from the government, and because they were not recognized during this pivotal time in history, the man argued that they did not have the rights to it. He also argued that the casino would compromise the safety and overall aesthetics of the area in Wayland Township.
The man's attorney argued that he already brought the lawsuit forth before the casino opened and before the land was put into the trust for the tribe.
Initially, a federal judge threw out the man's requests and said his arguments were not valid enough to bring to trial. That decision was overturned by a United States Circuit Court of Appeals. The tribe and Justice Department then appealed that decision to the Supreme Court.
The Supreme Court is expected to make a decision on the matter by the end of the summer.
Source: Bloomberg Businessweek, "Justice debating trial casino lawsuit," Jesse J. Holland, April 24, 2012
]]>Around 11,000 consumers launched lawsuits against Bayer AG, alleging that their contraceptives, known on the market as Yaz and Yasmin, caused blood clots. The plaintiffs in the cases said that these blood clots often lead to either heart attack or stroke.
]]> Bayer began chipping away at this long line of lawsuits by apparently striking a settlement in 500 cases. The settlement has not been finalized, but those close with negotiations said that the drug maker is willing to fork over at least $110 million to settle the chunk of cases. That sum would amount to $220,000 per case.The company said in February that is already settled 70 other cases. Bayer would not detail the terms of those settlements but said that they were willing to settle pending cases on a case-by-case basis.
The recent development was not a huge surprise. On Jan. 9, a case against Bayer held in a federal courtroom in Illinois was postponed. This was to give both sides time to work with a mediator in order to strike a settlement. With mediation proving effective in these 500 cases, it would be no surprise if the company opts for mediation in many of its other cases. This would help the company save a lot of money that would be spent on litigation within United States courtrooms.
Meanwhile, the United States Food and Drug Administration has ordered the drug maker to make warnings of blood clots more noticeable on their products. Yaz, Yasmin and similar products can put a patient at three times the average risk of developing a blood clot.
Traditionally, the sale of contraceptives has been successful for Bayer, attributing to $1.58 billion in sales during 2010 alone.
Source: Bloomberg, "Bayer said to pay $110 million in Yaz birth-control cases," Margaret Cronin Fisk and Jef Feeley, April 13, 2012
]]>Local 459, based out of Lansing and consisting of 272 members, officially went on strike against the Red Cross claiming that they are not given access to affordable health care, safe conditions at work and adequate staffing.
]]> The union had a four-year compact with the American Red Cross, but it expired around four years ago. The union is hoping to hash out a new agreement and bargaining teams are slated to get back to negotiating sometime this month. The OPEIU has launched similar strikes in a nearby state.Contrary to what some may believe, staffing at blood drives that are held in places like churches and schools are not compromised of volunteers. A spokesperson for the Great Lakes Region of the American Red Cross called the recent strike unfortunate as it will stop them from conducting blood drives around the state, which are very important to hospitals and health care providers. The Red Cross is able to conduct some blood drives with the staff they still have.
The spokesperson for the Red Cross also said that the ongoing negotiations are centered on health care benefits and not alleged unfair business practices. Recently, the Red Cross switched over to a national health care plan in which union and nonunion employees were asked to make sacrifices.
Still, chief steward of Local 459 stressed that this demonstration does not come from greed; rather, the union wants to improve conditions for both collection staff and blood donors alike.
Eighteen unions signed a contract with the Red Cross in July of 2011, but no such luck with Local 459.
Source: MLive.com, "Great Lakes Red Cross blood collections workers strike in Kalamazoo saying they want affordable health care," Al Jones, April 3, 2012
]]>Pamida, a store that sells general merchandise, stands as the top retailer in the small Michigan village. However, Pamida's Sparta location will close its doors in August after the company, based out of state, is merging with Shopko Stores. The 10 employees that work at the Sparta location will be without work.
]]> By combining with Shopko Stores, which also sells general merchandise, the two retailers create one larger company with the same general vision. All the Pamida locations that company officials chose to keep open will be turned into Shopko stores. The two companies employ 20,000 employees combined.Just six of the current Pamida stores will be closing under the new arrangement, including the Sparta location. A manager with the Sparta location attributed the decision to sagging sales numbers for the store. In fact, management at the branch was not surprised at the news and were even bracing for it.
These thoughts were confirmed by Pamida CEO, who said the decision of which stores to close was difficult. He also said that the company decided to close down the Pamidas that were not performing well financially instead of investing money into revamping them as Shopko stores. The CEO said that closing down the six stores would ultimately benefit the merger company and put it in a position to grow in the future.
Beginning in May, the Pamidas that are going out of business will liquidate their inventory, which consists of everything from electronics and toys to clothes.
The end result of this merger is also a larger company that will continue to cater to rural towns throughout the country. Both stores combine to sell around $3 billion worth of merchandise annually. Between both stores, they have 350 locations that span 22 different states.
Source: MLive.com, "Billion dollar retail merger costs northern Kent County town one of its biggest stores," Shandra Martinez, March 15, 2012
]]>Many people think that since their business is at a small scale, they do not need it to be contained in an LLC. While some Grand Rapid companies may not even have employees, creating a business entity is very important to the business owner for a couple of reasons.
]]> One of the main reasons a business owner should form a limited liability corporation is to shield their personal finances from being lumped in with their business finances. When a business owner operates as a sole proprietorship, they could see their personal assets dragged into a lawsuit and bankruptcy that is tied in with the company. A limited liability corporation builds a wall separating the two finances, so that while a business might fall to financial ruin, the owner would not.Another important reason to pursue an LLC is to make the business compliant with the state. Really, what is stopping you from turning your business into a limited liability corporation? These days, it is fast, cheap and easy. While business owners can file the proper paperwork on their own, it certainly does not hurt to seek the aid of an attorney that specializes in business formation and planning.
Each state requires different information from business owners, but almost universally, owners will have to be prepared to file the following paperwork:
Source: ActiveFilings.com, "Two document you need to form an LLC," Tim Parker, March 22, 2012
]]>Just recently, the United States senate passed what was called the Small Company Capital Formation Act, which will make it easier for small businesses to raise the capital they need to find growth and create new jobs. Current regulations put in place by the Securities Exchange Commission make it somewhat difficult for new and small businesses to raise money.
]]> The current law limits a company's maximum shareholders to 500. If this is not enough, the company will be forced to go public, which can be incredibly taxing for a company. Companies that are publicly traded on the stock market need to install an investor relations department that keeps investors informed on happenings within the company via regular reports.Instead of forcing companies to go public when they've reached their shareholder limit, the new bill extends that limit to 2,000 shareholders, giving business owners room to raise extra money to grow their companies while staying independent.
The act would also beef up an existing limit in the amount of shares a company can sell. Right now, the limit is set at $5 million worth of shares before it will be forced to go public. The Small Company Capital Formation act raises this amount to $50 million.
Opponents of the bill said that it certainly helps give companies the means to raise extra money, but does not adequately protect investors and opens the door for potential fraud.
The Small Company Capital Formation Act is a portion of the Jumpstart Our Business Startups Act adopted by the federal government to help build small businesses, which are often said to be the backbone of America.
Source: KFBB-TV Channel 5, "Small Company Capital Formation Act passes U.S. Senate," Charlie Keegan, March 23, 2012
]]>The company's pilots union claimed that the company made changes to contract provisions and then did not make a legitimate effort to form a new agreement with the group. This, according to the pilots, was a direct violation of the Railway Labor Act, an act that regulates the relationship between an airline and their unions.
]]> A district judge located in Brooklyn, New York granted US Airways Group Inc.'s request to have the lawsuit dismissed. The judge cited the fact that the pilots did not prove that airline officials did not bargain in good faith. The pilots also were unsuccessful in proving that the court had jurisdiction in the case, according to the judge.Airline officials voiced hopes that the pilots union would shift their focus to a seniority dispute currently gripping the group. That issue must be settled in order for both sides to hatch a new collective bargaining agreement.
No members of the pilot union immediately offered a comment to media on the matter.
This was just the latest chapter in a long history that has witnessed these two sides at odds. The issues date back all the way to September of 2005 when US Airways Group Inc. merged with America West Holdings Corp. The two sides were unable to strike an agreement with combing seniority lists. As a result, pilots for each company are still working under separate labor contracts.
Late last year, pilots with US Airways intentionally staged a work slowdown to force flight delays and cancellations while increasing the company's operating costs. A judge ordered the pilots to stop the behavior and US Airways highlighted the fact that the pilots union did not step in a put an end to it as they should have.
Source: Bloomberg, "US Airways wins dismissal of pilot claims it broke labor law," Thom Weidlich and Mary Schlangenstein, March 8, 2012
]]>To prepare for the deadline, it is important that a small business owner enlist the help of a Detroit Certified Public Accountant to make sure the process is being addressed in a correct manner. One of the main chores that business owners need to tend to is the gathering of important documents and receipts that must be accounted for during this process.
]]> The advent of technology has also made the process quicker, easier and more efficient. There are a number of ways business owners and individuals can file their taxes online. This helps reduce time and amount of paper work a business owner will have to sift through.If your accountant does not suggest it, business owners should look into forming a corporation or limited liability corporation if they had not already done so. This will shield an individual's assets from potential lawsuits filed against the business and perhaps help save on taxes.
It is also important during this time to ensure that all necessary business licenses are up to date. This can be done through the mail, in person or even online.
For those who are the teachers in this process and not the student, prepare to be busy. It is important to diligently maintain the schedule full of meetings with clients so that you are not buried under work come April.
Source: Forbes, "Your March small business checklist," Deborah Sweeney, March 1, 2012
]]>The U.S. attorney for the Southern District of New York and the Department of Housing and Urban Develop (HUD) said that the company wanted to ensure successful profit of their company first, instead of ensuring that home owners were outfitted with proper mortgages that they would not be forced to default on later.
]]> Both parties accused Flagstar Bank of approving mortgages that did not comply with HUD and Federal Housing Administration requirements as well as putting unqualified staff members in charge of approving HUD-backed mortgages.Under the terms of the settlement, Flagstar will pay $15 million within 30 days and continue with the remaining $118 million when it is in a financial position to do so. For the next year, the bank will be monitored by a third party to make sure they comply with HUD and FHA regulations.
The bank will also provide all staff that originates and underwrites FHA-insured mortgages with a new training program to ensure employees properly adhere to guidelines.
Flagstar was not the only bank to be targeted by the United States government, which has recently cracked down on what it considers to be fraudulent practices by mortgage lenders. The office has sued a number of other financial institutions as well.
The CEO of Flagstar said that now that the litigation is behind him and his company, the bank can now focus on delivering quality customer service. He said his company leads the pack in originating and servicing FHA-insured loans and that it will continue to.
Flagstar Bank is one of the largest residential mortgage lenders in the United States.
Source: Detroit Free Press, "Flagstar mortgage fraud lawsuit settled for $133 million," Katherine Yung, Feb. 25, 2012
]]>An officer in Saginaw, Michigan has taken just those measures and the case is very similar to what we see in workplaces around the state and country all the time. The man has filed a wrongful discharge suit against Saginaw and its police department, which relieved the officer of his duties on Nov. 7, 2008.
]]> It might seem like the city was justified in doing so. The man's firing came after an Aug. 16, 2008 accident where he crashed through a person's home in Saginaw Township. He was found to be drunk at the time of the crash, and it was his second drunk driving arrest. Officials at the police department in Saginaw fired him as a result.The officer argued that he should not have been fired, rather, protected under the Michigan Persons with Disabilities Civil Rights Act on account of a disability he suffered from.
This disability was revealed after the man sought treatment following the drunk driving crash. Doctors confirmed that he suffered from post-traumatic stress syndrome and had an alcohol dependency. The lawsuit also stated that one sergeant, who was particularly instrumental in getting him fired, knew about his struggles with alcohol.
The ex-officer argued that his dependency on alcohol never interfered with his job performance.
The man originally filed a lawsuit in December of 2010, but a judge dismissed it because he did not serve Saginaw with a summons within 120 days of filing the lawsuit.
Source: MLive.com, "Saginaw police officer arrested for drunk driving after off-duty crash re-files wrongful firing lawsuit," Gus Burns, Feb. 15, 2012
]]>The lawsuit was filed in a U.S. District Court on behalf of eight companies that sell fireworks. One of those companies belonged to an East Jordan, Michigan, man that operates Great Lakes Fireworks, based out of Eastpointe.
]]> Included in a law that took effect on Jan. 1, 2012 the state is now requiring that businesses that sell fireworks carry a $10 million insurance policy. The companies argue that this steep price tag is out of the reach of smaller, local companies. The large companies that produce and sell fireworks will be able to foot the bill on this insurance policy, allowing them to essentially develop a monopoly within the industry.The attorney that is representing the plaintiffs in the case argued that this bloated insurance policy has little to do with public safety. This is especially seen in the fact that the required insurance policy is five times higher than that required by any other state in the country. Only three other states in the country require these types of businesses to carry insurance at all.
This, according to the lawyer, could cause fireworks sellers to jack up prices, leading customers to make purchases out of state.
Firework retailers in Michigan do admit they are thankful they can operate in a wider capacity now. In the United States, there are still 14 states that cannot sell fireworks at all.
Source: PetoskeyNews.com, "State fireworks rule sparks lawsuit," Sheri McWhirter, Feb. 7, 2012
]]>Both profits and losses of a business wind up on an individual's own tax return (recorded on Schedule C). This can often be a breeding ground for discrepancies as filers determine what sort of deductions might be earned through the company. The IRS tends to key in on filings from sole proprietorships because they are a big contributing factor in the United States' tax gap.
]]> One big deduction sole proprietors aim for is a home office deduction. This is entitled by individuals that have an area in their home that he or she uses as a workspace. For this reason, the filer can deduct some of their home expenses like mortgage interest and utilities. A sole proprietor that operates from home can also claim mileage as a deduction, as well.However, when it comes to the home office deduction, you have the IRS's full attention. In fact, this is where many sole proprietors mistakenly, or falsely, make deduction claims most frequently, so it is heavily scrutinized.
One way to determine if the home office deduction truly applies is if the workspace in the home is used only for business. While it does not have to be an entire room, it does have to be used for business and business only.
The workspace must also be used consistently. These are the rough perimeters for the deduction and it may be wise to consult an expert to make sure you are accurately recording information on a tax return.
Source: The Journal, "Home office deductions can be dangerous," Brett Hersh, Jan. 29, 2012
]]>The wreck killed 16 passengers. Presumably, separate lawsuits will be filed for their wrongful deaths. But, for surviving passengers, Miami-based Carnival Corp. reached a deal with consumer groups in Italy, Spain, France and Germany over damages. The company will pay each passenger $14,500 as a settlement in the ordeal.
]]> However, Carnival Corp. for the first time ever faces a lawsuit in the United States. A crewmember of the ship recently filed the complaint in a federal court in Chicago claiming the company is guilty of negligence and breach of contract. The man is also seeking class action status in lawsuit so that fellow victims can join the legal effort.This U.S. litigation is likely the least of the company's worries, as a criminal lawyer in Italy is preparing to file a complaint with prosecutors there over the incident. That lawyer said that his clients were not satisfied with the cash settlement.
This recent incident shines a light on how delicate operations for some businesses can be, especially when a company is in charge of overseeing the safety of its consumers. The ship that wrecked was carrying 4,200 passengers. Unfortunately, 18 passengers are still missing but have not been ruled dead.
Source: Bloomberg, "Carnival reaches consumer settlement as cruise ship wreck sparks lawsuits," Marco Bertacche and Chiara Vasarri, Jan. 27, 2012
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