Daudi & Kroll, P.C.

Why you should have your contract reviewed

2026-07-06T19:45:36Z

Contracts form the foundation for many business and personal deals. While they should be clear, their dense language can hide unfavorable clauses or unclear provisions. A comprehensive review of a contract is a critical step. It helps find and fix terms that may be unfair or illegal before they cause future problems.

The best time to check your agreements

The best time to review your contracts is before you sign them or when they are up for renewal. This timing allows for discussion and changes when both sides are more open. However, a review is useful at any time. Reviewing a current contract can clarify duties and identify potential problems before they worsen. This helps make your position clear from the start.

Finding unfair or unenforceable terms

A main goal of a review is to find unfair or unenforceable terms. A contract might have very one-sided clauses, create ambiguous points regarding duties or even violate state law. Without a close read, you could agree to terms that limit your rights or expose you to risks you did not expect. Identifying these issues is the first step toward drafting a fair and legal contract.

Key issues in common types of contracts

A review is important for many types of business contracts. A thorough review can identify specific risks depending on the contract's purpose, such as those found in:

Employment contracts: A review can clarify the scope of non-compete clauses, rules for job termination and how bonuses or commissions are structured.
Lease agreements: A review can check for ambiguous terms about who handles repairs, fees for early lease termination or automatic renewal clauses.
Partnership agreements: These agreements need clear rules for sharing profits, who holds decision-making power and how a partner exits the business.

A clear grasp of these points helps protect the interests of all sides.

From review to a stronger foundation

Beyond checking existing contracts, the process can also help you write new ones. When you create a new contract, legal help can make sure the wording is clear, complete and accurately reflects what all parties intend. This approach helps prevent problems from the start and builds a strong foundation for a business relationship.

Why a clear contract is a business asset

A well-written and reviewed contract is more than just a legal step. It is a valuable tool that sets out expectations, divides risk and provides a clear plan for the relationship. By making sure your contracts are fair, clear, and enforceable, you build stability and reduce the risk of costly disputes later on.

June 2026 Newsletter

2026-06-04T14:52:01Z

Hidden Legal Risks of Artificial Intelligence for Businesses

As artificial intelligence becomes more integrated into daily business operations, many companies are using these tools for drafting documents, marketing, hiring support, customer communication, and internal workflows. While AI can improve efficiency, it also introduces legal risks that businesses should carefully consider.

Key Legal Considerations When Using AI :

1. Confidentiality and Data Protection

AI tools may process or store information entered by users, including business records, client data, or internal communications. Businesses subject to privacy regulations such as HIPAA, GLBA, or the CCPA may unknowingly violate those frameworks by allowing employees to use unsecured AI platforms. Even without formal regulatory obligations, sharing client or business data with a third-party AI tool may breach confidentiality provisions in existing contracts. • Are employees entering sensitive or protected information into AI tools? • Do your client agreements restrict sharing data with third-party platforms?

2. Employment Law and AI-Assisted Hiring

Some businesses use AI to assist with recruiting, screening, or performance evaluations. These tools may unintentionally replicate patterns of discrimination based on race, gender, age, or other protected characteristics, creating liability under Title VII, the ADEA, or applicable state law regardless of intent. Several jurisdictions have already enacted laws requiring bias audits and applicant disclosures for automated hiring tools, and the EEOC has identified AI-related employment discrimination as an enforcement priority. • Have AI-assisted hiring tools been reviewed for potential discriminatory impact? • Are you in compliance with state or local laws governing automated employment decisions?

3. AI-Generated Contracts and Documents

AI is increasingly used to draft contracts, policies, and business communications. However, these documents may contain errors, incomplete clauses, or language that does not meet enforceable legal standards in your jurisdiction. Relying on AI-generated agreements as final, executed documents without attorney review creates the risk that provisions you believe are binding may not be, or that you have inadvertently agreed to unfavorable terms. • Are AI-drafted contracts being reviewed by legal counsel before execution?

4. Intellectual Property Ownership

Content generated by AI may not qualify for copyright protection under current U.S. law, leaving it available for competitors to copy without recourse. At the same time, AI output could inadvertently reproduce copyrighted third-party material, exposing your business to infringement claims. Many AI platforms also include terms of service granting the platform rights over user inputs or outputs, limiting what your business actually owns. • Have you reviewed the ownership terms in your AI platform agreements?

5. Liability for AI-Driven Errors

Even when AI is used only as a support tool, the business remains legally responsible for errors, inaccuracies, or harmful outcomes that result from its use. AI systems can produce fabricated citations, flawed analysis, or misleading summaries. If a business relies on that output in a client-facing or regulatory context, it may be held accountable for the consequences.

Why These Considerations Matter

The use of artificial intelligence is expanding faster than many existing legal and regulatory frameworks. Without proper oversight and guidance from qualified legal counsel, businesses may unintentionally expose themselves to contractual disputes, privacy violations, employment claims, intellectual property issues, or regulatory penalties. Even when AI is used only as a supportive tool, legal responsibility typically remains with the business. Consulting with a licensed attorney and establishing clear internal AI policies, compliance procedures, and legal review processes can help reduce uncertainty, ensure regulatory compliance, and protect the business from avoidable legal risk.

Recommended Actions

Daudi & Kroll PC works with businesses and individuals to address the legal risks and compliance challenges associated with artificial intelligence and emerging technologies. The firm provides guidance on corporate policies, contract review, employment law, privacy considerations, and risk management to help clients use AI responsibly while protecting their business interests. For guidance or a consultation, call (734) 351-5578.

Adil Daudi, Partner at Daudi & Kroll, P.C., serves as a trusted advisor specializing in employment law and complex corporate transactions. His expertise includes structuring and negotiating buy/sell agreements, real estate transactions, corporate restructuring strategies and providing guidance on employment law compliance. Adil also provides strategic counsel on estate planning, Shariah-compliant estate solutions, and corporate formation. He can be contacted for any questions related to this article or other areas of law at adil@daudikroll.com or (734) 351-5578.

Disclaimer: This article is intended to provide general information and does not constitute legal advice. Please consult with an attorney for advice regarding your specific situation.

AI is a Tool, Not a Legal Authority

While artificial intelligence can assist in drafting or organizing information, it should never replace professional legal review for contracts, employment decisions, or compliance-related matters. Legal documents require jurisdiction-specific analysis, risk evaluation, and enforce ability review that AI systems cannot reliably provide. Before relying on AI-generated materials in a business context, it is important to have them reviewed to ensure accuracy and legal protection.

May 2026 Newsletter

2026-05-15T18:04:54Z

Traveling This Summer? Don’t Forget These Legal Essentials

As summer approaches, many families are preparing for vacations, extended travel, and time away from home. While planning your itinerary, it is just as important to make sure your legal affairs are in order before you leave.

Here are a few key items to consider before your next trip:

1. Make Sure Your Estate Plan Is Up to Date If you already have a will or trust, take a moment to review it. Have there been any major life changes this year - such as a new home, business, or family addition? If so, updates may be needed. 2. Have a Power of Attorney in Place A financial power of attorney allows someone you trust to handle important matters on your behalf if you are unavailable. This can be especially helpful if something urgent arises while you are out of town. 3. Review Your Healthcare Documents Healthcare directives and medical powers of attorney ensure that your wishes are followed if you are unable to communicate. It is important that these documents are current and accessible. 4. Traveling Out of State or Internationally Different states and countries have varying rules when it comes to legal documents. Having properly prepared and executed documents can help avoid complications if something unexpected occurs. 5. Keep Important Documents Accessible Before you travel, make sure trusted individuals know where to find your documents, or consider keeping secure digital copies available if needed.

Why These Steps Matter

Before any trip, it's worth taking a moment to make sure your legal documents are current and accessible. An outdated will, a missing power of attorney, or a healthcare directive no one can locate can create real complications, especially when you're far from home. A brief review before you leave ensures that if something unexpected happens, your wishes are clear and the people you trust are empowered to act.

Recommended Actions

Daudi & Kroll PC works with individuals and business owners to harmonize their legal structures with their tax obligations. We provide strategic guidance on corporate maintenance, employment law, and estate administration to help you navigate these complex documents. For guidance or a consultation, call us at (734) 351-5578. Adil Daudi, Partner at Daudi & Kroll, P.C., serves as a trusted advisor specializing in employment law and complex corporate transactions. His expertise includes structuring and negotiating buy/sell agreements, real estate transactions, corporate restructuring strategies and providing guidance on employment law compliance. Adil also provides strategic counsel on estate planning, Shariah-compliant estate solutions, and corporate formation. He can be contacted for any questions related to this article or other areas of law at adil@daudikroll.com or (734) 351-5578.

Disclaimer: This article is intended to provide general information and does not constitute legal advice. Please consult with an attorney for advice regarding your specific situation.

Digital Assets: Don't Leave Them Out of Your Estate Plan

Most people have online accounts, cryptocurrency, or stored financial data that a traditional estate plan never addresses. Without explicit authorization in your documents, even a trusted family member may be legally unable to access your digital accounts after you pass. Michigan's Fiduciary Access to Digital Assets Act gives trustees the authority to manage these assets, but only if your plan is drafted to allow it. A quick review with your attorney can ensure nothing of value falls through the cracks.

What happens to bank accounts during a divorce?

2026-05-05T16:46:42Z

Married couples typically share their income and their financial obligations through joint back accounts. As a result, depositing paychecks or other monies into one shared bank account is a relatively common practice. Spouses preparing for divorce should consider what might happen to the money in their joint bank account as they divide assets, which is especially true if one spouse earns far more than the other. There may also be concerns about how to address any separate accounts owned by each spouse. Understanding the basics of the Michigan equitable distribution process can help people untangle their combined financial lives and more effectively navigate property distribution when they divorce.

Joint accounts are marital property

When both spouses have contributed to a specific financial account during the marriage, it becomes a marital asset that is part of the pool of marital property. Both spouses ultimately have an interest in the balance of the account, although how they divide it when they divorce can be drastically different from one case to the next. During the financial discovery and review process, spouses provide disclosures to the other party, including financial records. A review of both contributions and spending habits can provide insight into the marital estate and guidance when determining what arrangements are fair. Separate financial accounts held in the name of either spouse might also be marital property. Even when only one spouse contributes to the account, the income earned during the marriage is marital property that is subject to equitable distribution. For some couples, prenuptial or postnuptial agreements can help solidify separate bank accounts as separate property that they do not need to divide. Those preparing for divorce can benefit from getting legal guidance as early as possible to understand their rights and the laws that govern the distribution of their property as well as their shared debts. Our attorneys will help our clients use a rational approach to property division negotiations, and help prepare for litigation if a trial is necessary to settle disputes. Spouses who are able to negotiate their agreements without having a judge make the decision for them can enjoy more control over the final distribution of assets. Reviewing financial records with one of our Michigan family law attorney can help those concerned about their financial stability during and after divorce more effectively navigate this challenging process.

Will I lose my house in a divorce?

2026-04-30T14:54:17Z

Many people approaching divorce worry about losing their assets in the process – including the family home. In Michigan, the outcome of a divorce involving homeowners is rarely simple. A couple’s home is typically considered part of their marital estate, which means that the equity in that home has to be equitably divided. There are several ways to handle a marital home in a divorce. Some couples choose to sell the property and divide the proceeds equitably. Others agree that one spouse will keep the home and buy out the other’s share. What works best for your situation will depend on several factors.

What must go into the equation when the family home is at stake

You do not have to remain living in the home to preserve your interest in it. However, it is important to avoid situations that could be interpreted as abandonment. While Michigan law does not require you to continue paying the mortgage or household expenses to maintain your rights, stopping contributions entirely can sometimes influence how a court views the division of that asset. Continuing to contribute to household bills and expenses, when possible, can help demonstrate ongoing interest in the property. The practical realities of the division must be considered. One of the biggest questions is whether either spouse can realistically afford to keep the family home on their own. This includes not just the mortgage, but also taxes, insurance and maintenance costs. Therefore, it is critical to consider whether your income will support the costs of homeownership on your own. It is also important to determine whether buying out your spouse's share of the equity is viable. To buy out your spouse’s interest, you will likely need to refinance the home or trade other assets in order to accomplish this goal. If there are minor children involved, that can also factor into who keeps the family home. The parent who has primary physical custody of the children may have a stronger argument for retaining the home. It is never guaranteed, but the courts prefer to minimize the disruptions of a divorce for children and that can play a vital role. When spouses can work cooperatively and come to their own agreement on the house and other issues involving their assets, they maintain more control over the result and avoid the uncertainty of litigation. If the matter goes before a judge, the final decision will be based on a broader assessment of fairness, which may not align with anybody's preferences. If you are considering divorce and are concerned about losing your home, speaking with one of our attorneys can help you understand your options and what outcomes are likely based on your specific situation.

April 2026 Newsletter

2026-04-09T15:28:16Z

Navigating Tax Deadlines and Strategic Legal Alignment

As the calendar has turned to April, the focus for many Michigan businesses and residents has shifted toward the rapidly approaching tax deadlines. While filing returns is often viewed as a purely financial task, the information reported to the IRS and the Michigan Department of Treasury serves as a permanent legal record of your operations, asset ownership, and workforce structure.

In 2026, several significant shifts in both state and federal law make this tax season an ideal time to ensure your legal documentation matches your financial filings.

Key Deadlines for April 2026

Understanding which deadlines apply to your specific entity is the first step in avoiding late-filing penalties and maintaining good standing:

Wednesday, April 15: The deadline for filing individual 2025 federal and Michigan income tax returns. This is also the due date for the first quarter (Q1) 2026 estimated tax payments for individuals and small business owners.
Wednesday, April 15: The final day to make 2025 contributions to an IRA or Health Savings Account (HSA).
Thursday, April 30: The due date for Michigan Corporate Income Tax (CIT) annual returns for calendar year filers. Corporations with gross receipts exceeding $350,000 must ensure their Michigan filings are accurate to maintain their corporate protections.

New Michigan Tax Opportunities: HB 4961

One of the most notable developments for the 2026 tax year is the implementation of Michigan House Bill 4961. This legislation introduces new state income tax deductions for "qualified tips" and "qualified overtime compensation." For service-based businesses and their staff, this provides a unique opportunity for tax relief, but it also requires precise payroll reporting. Ensuring that your Employee agreements and timekeeping systems are correctly categorized is essential to claim these deductions without triggering an audit.

The Intersection of Tax Filing and Legal Protection

Tax season is more than a deadline; it is a "litmus test" for your legal structure. When you file your returns, you are essentially confirming your business’s legal status. If you are operating as a C corporation, S corporation, or an LLC, your tax filings must reflect the governance documented in your operating agreements and corporate minutes.

Why These Steps Matter

Taking a proactive approach this April ensures that your business remains in compliance with Michigan’s specific tax rates and recent decoupling from certain federal depreciation rules. Aligning your legal documents with your tax strategy helps maintain the "corporate shield," protecting your personal assets from business liabilities. For individuals, reviewing your estate plan during tax season ensures that your trust funding and beneficiary designations remain optimized under current tax brackets. This synchronization reduces the risk of administrative errors and positions you for a more secure and efficient 2026.

Recommended Actions

To ensure your legal records support your tax filings, we recommend prioritizing these specific actions this month:

Match Your Minutes: Verify that your corporate resolutions and minutes reflect the same business activities and entity structure you are reporting to the IRS and State of Michigan.
Audit Worker Classifications: Review that every Employee is correctly identified in your contracts to ensure your payroll tax filings are legally defensible.
Confirm Asset Ownership: Check that any assets being depreciated or reported on your returns are legally titled in the name of the correct individual or entity to avoid future audit complications.

Daudi & Kroll PC works with individuals and business owners to harmonize their legal structures with their tax obligations. We provide strategic guidance on corporate maintenance, employment law, and estate administration to help you navigate these complex intersections. For guidance or a consultation, call us at (734) 351-5578. Adil Daudi, Partner at Daudi & Kroll, P.C., serves as a trusted advisor specializing in employment law and complex corporate transactions. His expertise includes structuring and negotiating buy/sell agreements, real estate transactions, corporate restructuring strategies and providing guidance on employment law compliance. Adil also provides strategic counsel on estate planning, Shariah-compliant estate solutions, and corporate formation. He can be contacted for any questions related to this article or other areas of law at adil@daudikroll.com or (734) 351-5578.

Disclaimer: This article is intended to provide general information and does not constitute legal advice. Please consult with an attorney for advice regarding your specific situation.

Worker Classification: A Pre-Tax Check

Properly documenting the status of each Employee or independent contractor on your 2025 filings is a vital risk-management step. Discrepancies between how a worker is treated in daily operations and how they are reported on tax forms can lead to significant liability under Michigan’s updated labor laws.

March 2026 Newsletter

2026-03-04T18:58:42Z

A 2026 Compliance Review: Employee or Independent Contractor?

Properly classifying workers as employees or independent contractors remains one of the most important compliance issues facing businesses. Misclassification can result in wage claims, tax consequences, benefit disputes, and potential penalties.

While independent contractors offer flexibility, simply labeling a worker as a contractor does not determine their legal status. Government agencies evaluate factors such as the level of control over the work performed, the method of payment, the provision of tools and equipment, and the overall nature of the working relationship.

Why Classification Matters

Worker classification affects several key areas, including:

Minimum wage and overtime requirements
Unemployment insurance obligations
Workers’ compensation coverage
Payroll tax responsibilities
Eligibility for employee benefits

Improper classification can create exposure under both state and federal law. Potential consequences may include:

Liability for unpaid minimum wage or overtime
Retroactive payroll tax assessments and penalties
Unemployment insurance contributions and interest
Workers’ compensation disputes
Employee benefit claims
Civil fines or agency audits

Because different agencies apply their own legal standards, a classification issue in one area can trigger review in others.

Why These Steps Matter

Avoid penalties and claims under Michigan’s updated employment laws

Strengthen legal protections for your business

Prevent probate complications and ensure your estate plan functions as intended

Lower your family’s financial and legal risks

Improve tax outcomes for both individuals and businesses

Position your company for a smoother and more compliant start to 2026

Recommended Actions

The first quarter of the year is often an great time for businesses to review contractor agreements, job descriptions, and payroll practices. As enforcement trends continue to evolve, ensuring that worker classifications reflect the actual working relationship is an important risk management step.

Daudi & Kroll PC works with employers to review independent contractor relationships, assess compliance considerations, and update agreements where appropriate. Proactive review can help reduce disputes and strengthen workplace practices. For guidance or a consultation, call us at (734) 351-5578.

Disclaimer: This article is intended to provide general information and does not constitute legal advice. Please consult with an attorney for advice regarding your specific situation.

Review Employee Documentation Practices

Michigan employers should periodically review how employee records are created, stored, and retained. Personnel files, payroll records, disciplinary documentation, and termination records must be maintained in compliance with state and federal retention requirements and kept confidential. Consistent documentation practices help support employment decisions, respond to agency audits, and reduce risk in the event of employee disputes or litigation.

February 2026 Newsletter

2026-03-02T15:22:17Z

February 2026 Legal Update: Michigan’s Statewide Classroom Cellphone Ban

Michigan has enacted new legislation requiring public school districts to restrict student cellphone use during instructional time beginning in the 2026–27 school year.

House Bill 4141, signed by Governor Gretchen Whitmer on February 10, 2026, requires K–12 school districts to develop and implement policies prohibiting the use of smartphones, tablets, and certain electronic devices during classroom instruction. The law follows similar measures adopted in other states aimed at reducing digital distractions, improving classroom focus, and addressing concerns such as cyberbullying.

Importantly, students are still permitted to bring phones to school. Devices may remain on campus, including in lockers or stored outside the classroom, but may not be used during instructional time except in limited circumstances such as emergencies, medical needs, or teacher-approved educational purposes.

School districts must prepare and publish compliant policies prior to the start of the upcoming school year.

What This Means for Schools and Families

School administrators should begin reviewing and updating student codes of conduct, technology policies, and parent handbooks to ensure alignment with the new statewide requirement. Clear communication with families and staff will be essential to support smooth implementation.

Parents may wish to review their district’s updated policies once released to better understand expectations for the coming school year and discuss device rules with their children in advance.

Recommended Actions

As districts prepare for implementation, schools should review policy language, clearly define instructional time, outline permissible exceptions, and establish consistent enforcement procedures. Providing advance notice to families and training staff on application of the policy can help ensure a smooth transition.

Families can also take proactive steps by reviewing school policies once issued, discussing expectations with their children, and planning practical arrangements such as locker storage or after-school communication procedures.

Daudi & Kroll PC works with educational institutions and families to provide guidance on policy interpretation, compliance considerations, and related legal questions. Proactive planning can help reduce disputes and support a positive learning environment. For guidance or a consultation, call us at (734) 351-5578.

Disclaimer: This article is intended to provide general information and does not constitute legal advice. Please consult with an attorney for advice regarding your specific situation.

Conduct an Internal Worker Classification Audit

Misclassifying employees as independent contractors can create significant liability under state and federal law. Conducting a proactive internal audit can help ensure workers are properly classified by reviewing factors such as control over duties, provision of tools, payment structure, the role of services in your business, and the permanency of the relationship. Updating agreements to reflect the actual working relationship and periodically reviewing classifications with legal counsel can reduce exposure to back wages, tax penalties, unemployment claims, and benefit disputes, while supporting long-term compliance.

January 2026 Newsletter

2026-03-05T17:49:12Z

A New Year Update from Daudi & Kroll, P.C.

Happy New Year from Daudi & Kroll P.C.!!!

As we begin 2026, we want to thank you for trusting Daudi & Kroll PC with your legal needs. We value the opportunity to work with you and look forward to continuing our relationship in the year ahead while striving to exceed your expectations.

Unemployment Insurance Changes Effective January 1, 2026

Beginning January 1, 2026, Michigan’s unemployment insurance system includes an increase to the maximum weekly unemployment benefit. This change is part of a phased update adopted by the State and may impact employers differently depending on how they participate in the unemployment system.

Most for-profit employers pay unemployment insurance taxes, and benefit adjustments are absorbed within the system over time. However, certain employers, including nonprofits and governmental entities, may reimburse the State directly for unemployment benefits paid to former employees. For these employers, higher benefit amounts may result in increased reimbursement costs per claim, making awareness and planning especially important.

Michigan Minimum Wage Increase

Michigan’s minimum wage also increased from $12.48 to $13.73 as of January 1, 2026, under previously enacted legislation. This adjustment affects employers across many industries and may require updates to payroll practices, wage notices, and budgeting considerations.

Employers may wish to review compensation structures and ensure compliance with current wage requirements as part of their planning for the new year.

A New Year Reminder: Reviewing Estate Planning Documents

The start of a new year is a natural time to review estate planning documents. Plans created years ago may no longer reflect current family circumstances, assets, or personal priorities.

Even without making immediate changes, periodic reviews can help ensure that existing documents continue to align with your intentions and provide clarity and peace of mind for you and your loved ones.

How We Can Help in 2026

In 2026, our firm remains committed to providing thoughtful guidance across a range of legal matters, including estate planning, business planning, and employment related issues. As laws and regulations evolve, we will continue to share general updates and work with our clients to help them stay informed and prepared.

At Daudi & Kroll, we help Michigan employers and families navigate these changes with confidence. For guidance or a consultation, call us at (734) 351-5578.

Disclaimer: This article is intended to provide general information and does not constitute legal advice. Please consult with an attorney for advice regarding your specific situation.

Kick Off 2026 with Policy Updates

Start the year strong by reviewing your workplace policies. Ensure handbooks cover anti-harassment, discrimination, and reporting procedures. Train managers and employees on expectations and anti-retaliation protections. Clear, up-to-date policies help prevent disputes, promote fairness, and keep your workplace compliant.

December 2025 Newsletter

2026-03-05T18:08:54Z

Year End Legal Checkup: Key Actions Michigan Families and Businesses Should Take Before 2026

As 2025 comes to a close, both families and business owners in Michigan face important legal and financial deadlines that can significantly impact risk, taxes, compliance, and long term planning. Several new Michigan laws, especially in employment and business compliance, are already in effect, and year end is also the ideal time to update personal estate plans and family financial protections.

To help clients prepare, we have outlined essential steps every Michigan household and business should consider completing before the end of the year.

Key Developments

1. Michigan Employment Law Compliance Deadlines for Business Owners

Michigan’s updated employment laws, including the Earned Sick Time Act (ESTA), new record keeping rules, and minimum wage increases, are now fully active. Year end is the right time for employers to audit internal documentation and ensure compliance.

What Businesses Should Do Now:

Update employee handbooks and policies to align with ESTA accrual, usage, and anti-retaliation rules.
Confirm payroll systems are correctly tracking hours worked, sick time accrued, and sick time used.
Review minimum wage and tipped wage increases set for January 1, 2026.
Train managers on approval procedures and documentation requirements.
Update new hire packets with required notices and sick leave summaries.

2. Business Year End Planning: Contracts, Records, and Tax Strategy

Year end is often the best moment for corporations, LLCs, and partnerships to ensure their business structure and contracts still match their goals. Proactive updates help minimize legal exposure and improve tax efficiency heading into the new year.

Recommended Business Actions:

Conduct an annual review of operating agreements, shareholder agreements, and buy-sell provisions.
Ensure annual meeting minutes and corporate records are properly maintained.
Revisit independent contractor agreements, employment contracts, and vendor contracts to confirm compliance with recent legal changes.
Review tax classifications, distributions, and compensation arrangements before closing the books for 2025.
Evaluate whether 2026 restructuring, such as a new entity, merger, or dissolution, should be planned now.

3. Estate Planning: A Critical Year End Review for Families

Estate planning documents should be reviewed annually to account for major changes in the law, finances, or family structure. If you have welcomed a child, bought a home, changed jobs, or started a business in the last year, updating your estate plan is essential. Year end is a perfect moment to confirm your plan still reflects your wishes.

Every Michigan family should review:

Wills and trusts to ensure beneficiaries, trustees, and guardians are current.
Powers of attorney and healthcare powers of attorney, which should be updated every few years to avoid banks or hospitals rejecting outdated documents.
Trust funding, to confirm that homes, bank accounts, and business interests are properly titled in the trust.
Life-insurance policies and beneficiary designations.
Charitable giving or end-of-year tax strategies.

4. Coordinated Planning for Business Owners With Families

For clients who own a business, personal and business planning overlap. Year end is the ideal time to evaluate:

Whether successor trustees or powers of attorney have authority to manage the business if you become incapacitated.
Whether buy-sell agreements align with your trust or estate plan.
Whether key person insurance, disability coverage, or business continuity plans need updating.
Whether membership interests or shares must be retitled into a trust to avoid probate.

Why These Steps Matter

Avoid penalties and claims under Michigan’s updated employment laws

Strengthen legal protections for your business

Prevent probate complications and ensure your estate plan functions as intended

Lower your family’s financial and legal risks

Improve tax outcomes for both individuals and businesses

Position your company for a smoother and more compliant start to 2026

Recommended Actions

Before December 31, employers should audit their handbooks, update policies, and verify that payroll practices comply with Michigan’s 2025 employment law requirements. Families are advised to review and update their wills, trusts, powers of attorney, and beneficiary designations to ensure their plans are current. Business owners should complete corporate records, review contracts, and coordinate estate planning documents with business succession plans to safeguard the future of their enterprises.

At Daudi & Kroll, we help Michigan employers and families navigate these changes with confidence. For guidance or a consultation, call us at (734) 351-5578.

Disclaimer: This article is intended to provide general information and does not constitute legal advice. Please consult with an attorney for advice regarding your specific situation.

Update Policies for Michigan Labor Law

Michigan employers must ensure handbooks, PTO, and sick-leave policies comply with the Earned Sick Time Act and updated minimum-wage rules. Track hours worked, leave accrued, and usage accurately, and retain records for at least three years. Train managers on approvals, documentation, and anti-retaliation rules. Provide employees with updated policy summaries and rights notices. Staying proactive reduces compliance risks, prevents disputes, and promotes a fair, transparent workplace.