Detroit & Chicago Business Organizations Legal Blog

Insurance fraud is an issue not only in Michigan and Illinois but around the country. It is not only insurance companies and their employees, like you, who pay the price but the general public as well. According to the Association of Certified Fraud Examiners, the huge losses within the industry due to fraud get passed along to consumers in the form of higher costs. 

There are ways to commit fraud on essentially every type of insurance policy. Some of the most common instances of fraud involve health insurance, workers' compensation, vehicle or property policies. Because insurance fraud is often very subtle, it can be difficult for you to build a successful defense against it.

Whether you have just started a new business or you are currently running a successful company, you may be looking at how you can take your venture to the next level. Both joint ventures and business mergers can help enhance the power of a company. Although these business methods sound similar, they differ in several ways. It is important to understand the difference and similarities of these business methods so that you can choose the one that fits best for your situation.

Joint ventures involve two companies combining their finances, resources and intelligence to increase revenue for both businesses. Despite this coming together, however, both entities keep their seperate status. The venture may be long-term or short-term and may work together for a common interest. Once the project is complete, the companies may return to their individual business methods or they may continue to work together.

It is a common marketing practice among business owners in Michigan and Illinois to emphasize the positive aspects of the products and services on offer, while paying as little attention as possible to the negative aspects. You may wonder if this represents a deceptive trade practice. According to FindLaw, it does not qualify as a deceptive trade practice in the eyes of the law. In order to categorize a trade practice as deceptive, you have to make a claim that is demonstrably false or deliberately misleading. 

Nevertheless, the definition of deceptive trade practices is far-reaching and includes the following:

• Misrepresenting used, damaged, reclaimed or altered products as brand-new
• Selling counterfeit goods while claiming that they are the genuine article
• Making false claims about needed repairs, replacements or services
• Intentionally keeping an insufficient amount of products in stock to meet expected demand

When you own an Illinois or Michigan small business, you assume a certain amount of risk, but the amount of personal liability you take on will depend on the type of business structure you choose to create. At Pentiuk, Couvreur & Kobiljak, P.C., we understand that the business type you choose will have a direct impact on whether others can hold you personally liable, should someone sue or file a judgment against your company. We have helped many entrepreneurs with similar concerns select business formation types that meet their needs.

According to QuickBooks, all small business owners face some degree of risk, and this holds true regardless of whether they own companies facing obvious liabilities, such as transportation companies, or entities where the risks are less overt. There are, however, two key business structures worth considering if one of your primary goals involves reducing personal liability in your business.