Legal Question in Business Law in Michigan

Hello, I have worked in school accreditation for many years, I had an idea to streamline the reporting process for the agencies and member institutions. I shared the idea with a company that decided to assist with funding the project (like business incubation I believe). I agreed to give them 75% interest in the business because they were providing the funding. We had not formed an actual legal entity yet. Now that we are getting some interest and starting to form contracts we is ready to form the legal entity. However, the company incubating wants to form it as a single member entity without adding me. Do you have any advice for me? What should I do, I do not want them to form this without me. I have proof in writing that I own 25% from the company owner.

Thanks


Asked on 7/22/14, 2:26 pm

1 Answer from Attorneys
Brad Lambert Lambert & Lambert PLC

Based on your description, actually forming the entity in the manner desired by the company would be a step backward for you. Ownership is the best protection for you, but there are alternative means to go about this and protect yourself.

This answer is for information purposes only and is not legal advice.

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Answered on 7/22/14, 2:49 pm


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