Legal Question in Business Law in Michigan

Starting a Home Manufacturing Business

We are currently working for another company manufacturing a product from our home. The company has no patents, copyrights or trademarks and we did not sign anything other than a tax form prior to starting employment. The owner of this company took the idea from a similar home business and created his own. Currently we do about 90% of their work and they are making all of the profit. There are similar companies out there manufacturing the same item. Can we start our own home business doing relatively the same thing without the fear of getting sued from the company we originally started with? I use the word company because it's easier, they actually are not incorporated, but use a ficitious business name and are a manufacturer.

Thank You!


Asked on 8/16/99, 7:40 pm

1 Answer from Attorneys
Patrick Tracy Patrick J. Tracy, Esq, P.E.,

Re: Starting a Home Manufacturing Business

As long as you do not have to sign a covenant not to compete when you resign from this other business, I believe that there is not a problem. Your employment is an at-will status, which means that it can be terminated by either party at any time.

If you do go into business, I would contact a michigan business attorney in your area to create a corporate structure from which to work. This is always more protective and I recommend it to all of my business clients.

Good Luck!!

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Answered on 8/19/99, 4:41 pm


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