Combat Detroit Unemployment with Micro-Businesses
Everyone knows 2020 has been rough. Due to COVID, unemployment in Michigan shot up from 4% to approximately 24%, and it’s been slow to get back, with the rate relatively stagnant just under 9%. At the time of this post, Michigan ranks 38th out of the 50 states, according to the U.S. Bureau of Labor and Statistics.
These days, many ask if they actually enjoy what they were doing beforehand. Whether you liked your routine, coworkers, job, etc., prior to the pandemic, this situation presents a unique opportunity for you to try something new. You may realize your passion – be it cooking, yoga, crafting, or motiving others to get a great workout – can be monetized on YouTube. Or, maybe you turned your interest in cycling, music, or the emerging cannabis industry into a one-person copyrighting business. Some DIY champions may have even mastered flooring, tiling, or landscaping, and are ready to generate a profit doing it for others.
The amount of economic activity in the micro-business space is notable. According to the Association for Enterprise Opportunity, businesses with 0-4 employees make up 92% of all businesses in the United States. Many micro-businesses are self-employed independent contractors or provide services like consulting, catering, photography, event planning, computer services, house cleaning, childcare, or cosmetology. Notably, these businesses do not need a commercial address to operate. Generally, one can run a micro-business from their home.
The pandemic has shown us a lot about ourselves and the business climate in which we live, including that some of us are quite resilient. If and when you decide to devote energy to making your passion a business, it is essential that you do it the right way. Micro-businesses tend to take the legal form of a limited liability company (LLC), which can be set up quickly, especially if it is a one-person operation. Setting up a legal entity is inexpensive and it is imperative for protecting your personal assets from claims against your business. Without forming a legal entity, everything your business does exposes you and the items you own in a personal capacity to the world (including your car, home, and savings). Entities like LLCs require minimal maintenance and an Operating Agreement, which is basically a contract between those who own the LLC and the legal LLC entity itself, which clarifies how the LLC and its owners (members) are to treat each other. Knowing how to properly maintain an LLC and locking an Operating Agreement into place are simple, affordable tasks, and are extremely important.
JLM Law Group can form any legal entity, including an LLC, and coach you through everything you need to do to properly maintain the LLC. From ensuring you represent yourself to the public properly to maintain limited liability protection, to walking you through the process of keeping your business expenses separate from your personal expenses, JLM Law Group is a one-stop shop for taking your micro-business from an idea to a reality.