Safford & Baker is a proud sponsor of Igniting Innovation In Michigan – Entrepreneurs In Action, a special one day business conference for entrepreneurs hosted by WWJ Newsradio 950.  The event takes place on Wednesday, September 29, 2010 at the Ford Conference and Event Center in Dearborn.  If you are in business for yourself, or you want to be, this conference is packed with startup resources.  Plus, you’ll also have the chance to network with other entrepreneurs…and you can receive free one-on-one business coaching to prepare you to launch your business or to take it to the next level.

This event will also mark the initial presentation of the GLITR awards from the Greak Lakes Innovation and Technology Report.  An expert panel of judges have selected winners from a broad field of nominees in the following categories — Reinvented Company Of The Year; Breakaway Company Of The Year; Green Company Of The Year; and Michigan Champion Of The Year (an individual award).

Here is the event info:

Tickets are only $50 (plus handling fees) and must be purchased in advance.  More information about the conference and how to register can be found here.

–Matt

Our very own Don Baker has an article on LLC capital accounting in the Summer 2010 edition of the Michigan Business Law Journal.  Here’s the intro:

With the widespread adoption of the limited liability company as a preferred entity format for non-public entities, business practitioners are forced to grapple with provisions in operating agreements that adopt detailed accounting and tax treatments generally beyond the traditional expertise of non-tax lawyers. These accounting and tax issues are not present in forming a standard corporation, but are thrust on the practitioner anytime even the most basic multi-member LLC is formed. While the “standard” LLC operating agreement approaches to these matters are at this point generally familiar (though perhaps less well understood), they are not simply “boilerplate.” I fear that we (and of course our clients) are often insufficiently aware that these provisions mandate specific economic relationships and results among the members, i.e., who gets what money. It is entirely possible that use of these standard approaches can unknowingly mandate results that are inconsistent with the client’s business “deal.”

The Journal can be found here, and the rest of the article here.

–Matt

Safford & Baker PLLC is today’s spotlight in The Great Lakes Innovation and Technology Report for Monday, August 30, 2010.  Here’s the article:

Randy Safford and Don Baker are veteran lawyers, but they’re also veteran entrepreneurs, both in their law firm and in other ventures they have helped launch.

And that’s why they, joined by their colleague, Matt Bower, have created a law firm focusing on technology entrepreneurs, including startups – offering to technologists services they may not even realize they need, but which can prevent major headaches later.

They also offer fixed-price products for startups, and are willing to consider a flexible fee arrangement, deferring some fees until a startup starts generating revenue, or even taking startup stock as part of the fee.

But it’s those legal bumps in the road that startup managers may not foresee that they say they enjoy helping out with the most.

Baker and Safford recall one client, a company that developed unique software to help auto dealers keep accurate inventory. But they never thought to get contracts with their independent-contractor software developers, acknowledging that all the work and the software itself belonged to the company.

“That’s copyrightable work, the software code, and if you don’t have an agreement, and the person isn’t an employee — and in most startups they’re not, because you don’t want the overhead — then the law says the developer owns the code,” Safford said. “You can still fix that after the fact, if they’ll sign it.”

Added Baker: “If you don’t get that right, you might not be able to get financing, because you can’t prove to an investor that you own the intellectual property that your business is based on.”

The firm also offers special startup legal products for fixed or deferred fees.

A $750 Entity Formation package includes articles of organization (for an LLC) or incorporation, operating agreement or bylaws, designation of successors, obtaining a tax identification number, a minute book of formation documents, confidentiality and intellectual property assignment agreements and more.

A fixed-fee Seed Funding package gets a startup ready for investors. Companies seeking $250,000 to $2 million get a term sheet describing the basic agreements of the investment, restated articles of incorporation or organization to include a new class of preferred stock, a more complex set of bylaws a subscription agreement to document the actual investment, forms to let investors to elect a board member representing their interests, and more.

The firm still has many of its original entrepreneurial clients, including the payment and ordering kiosk technology developers Nextep Systems.

“We helped them form the company, we invested in it and are still investors, and they’re doing great,” Safford said. “They’re right in our sweet spot, because they have intellectual property, software IP, and they license it.”

To learn how Safford & Baker can help your startup thrive, visit www.saffordbaker.com or e-mail info@saffordbaker.com.

–Matt

Billed as the “World’s largest business plan competition,” the New Economy Initiative for Southeast Michigan is launching the Accelerate Michigan Innovation Competition today, offering more than $1 million in cash awards for the best and brightest new business concepts.  What does the winner get?  How does $500,000 sound?  From the press release:

The Business Accelerator Network for Southeast Michigan, a new region-wide network for building and retaining new business in southeast Michigan, today announces the Accelerate Michigan Innovation Competition, an international business plan competition designed to highlight Michigan as a robust and vibrant venue for innovation and business opportunity.

The New Economy Initiative for Southeast Michigan has granted Ann Arbor SPARK $750,000 to launch the competition on behalf  of the Business Accelerator Network for Southeast Michigan, composed of four of the region’s key business accelerators– Ann Arbor SPARK, Automation Alley, Macomb-OU INCubator, and TechTown. Joining the Accelerate Michigan Innovation Competition as partners for event are the University Research Corridor (Michigan State University, the University of Michigan and Wayne State University) and Business Leaders for Michigan.

….

The business plan competition is open to entrepreneurs in Michigan and worldwide who are willing to establish a business in the state. Participants will submit entries in nine categories including advanced materials, advanced transportation, alternative energy, homeland security and defense, information technology, life science, medical devices, next generation manufacturing and products and services.  A separate track designed specifically for students to submit business concepts is open to any undergraduate or graduate student attending a Michigan university or college in fall 2010.

(Links in original omitted.)

More info about the competition can be found at The Detroit Blog over at Time Magazine.

Personally, it’s heartening to see a catchall category for “next generation…products and services” included in the competition along with the traditional categories.  As a state, we should be soliciting good businesses no matter the industry; rather than look only for business that fall within conventional ideas of “good” industries.  Some of the most innovative and fastest growing companies in our state are coming out of the mobile applications, entertainment, and consumer electronics industries.  It’s nice to see these companies have a chance to compete for this kind of support.

–Matt

The next Detroit Startup Drinks event is this Wednesday, August 25, 2010 from 5:30-8 p.m. at The Park Bar Detroit.  Come on down and meet like-minded individuals looking to support startup culture, help each other out, and share ideas…over a pint.

Join the Facebook Group.  Don’t forget to RSVP.

About The Park Bar

The Park Bar is located at 2040 Park Ave in Detroit (one door down from Cliff Bell’s).  There’s no sign but you won’t miss the 17-foot-high windows enclosing the corner location.  Food is available from the Bucharest Grill and the bar features an impressive selection Michigan beers on tap.

About Startup Drinks

A simple concept: startup culture in cities around the world gathers around a bar to have a pint and discuss what they are working on, what they need help with and what they can do for each other.

–Matt