Sterling Law Office

The Federal Bar Association Immigration Law Section, seminar on “U.S. Employers and Immigration Enforcement.” Detroit, Michigan, January 25, 2008, attended by Lea Ann Sterling.

2007 Institute for Continuing Legal Education Family Law and Child Custody Seminar. On video. December 2007 and ongoing, attended by Lea Ann Sterling, Wendy Bailey, and Kenneth Watson.

2007 American Immigration Lawyers Association, Worksite Enforcement and Immigrant Employment Law Conference. Scottsdale, Arizona, November 30-December 1, 2007, attended by Lea Ann Sterling.

2007 Michigan Bar Association Annual Meeting and Institute for Continuing Legal Education Solo and Small Firm Institute. Grand Rapids, Michigan, September 27-28, 2007, attended by Lea Ann Sterling, Lanny Sterling, M. Wreford.
Posted by Mary Wreford; Approved by Lea Ann Sterling, Esq., December 15, 2007

The information presented in this article is for general information only and should not be construed to be legal advice.

Sterling Law Office attorneys recently worked on articles of incorporation and other state and federal documentation for a local friends of the library organization. The following article gives an excellent summary of why formal incorporation is very important for library friends. This article is reprinted with kind permission of the State Library of Michigan, originally posted on their website www.michigan.gov/libraryofmichigan.

FRIENDS OF THE LIBRARY – PART I: INCORPORATION
There are a number of legal issues that a group of hard-working, helpful volunteers must consider prior to establishing themselves as the official Friends of the Library. Two articles (below) focus on the legal requirements of establishing and operating Friends of the Library groups to help them work effectively and efficiently with public libraries across Michigan. The first article focuses on the establishment options of the group. The second article focuses on legal requirements tied to fundraising and gaining 501(c)(3) status.

One of the most important goals a Friends of the Library group must achieve is to establish a proper relationship with the public library with which it is associated. Each party should understand the legal status of the other, as well as respect each other’s powers and duties. This relationship can either make or break the Friends of the Library. Care should be taken to establish a reporting structure, a policy on gifts to the library and authorization for any activities undertaken in the name of or on behalf of the library.

In Michigan, as in most other states, there are two basic organizational structures to be considered when establishing a Friends of the Library group: unincorporated association or corporation. The choice of one or the other depends on an analysis of factors such as cost, liability and certainty.

A) Unincorporated Associations. Many associations made up of volunteers, especially those organized for short-term projects, are unincorporated associations. Generally, the personal liability of members of unincorporated associations on contracts made by, for and on behalf of the association is “joint and several.” This means that all the members, collectively, or any one member may be liable for the entire value of the contracts of the association. The remaining members, for instance, may be liable for payment on a contract for printing costs if the association itself fails or is unable to pay off the debt of the group. Members of unincorporated associations may also be liable for any civil wrongs in which they participate, authorize or even to which they simply assent by vote or otherwise. These acts may include, but are not limited to, undertakings that amount to discrimination, wrongful hiring or termination, negligence, and lack of supervision.
Even unincorporated associations should be carefully organized with appropriate articles and bylaws. Since the potential for liability for members is omnipresent, the unincorporated group should always seek the advice of legal counsel to ensure that the documentation is complete and proper.

B) Michigan Nonprofit Corporations. In general, the officers, directors and members of nonprofit corporations are not personally liable for the acts of the corporation or each other. Any liability is generally limited to the assets of the corporation. The Michigan Nonprofit Corporation Act, MCL §450.2101 – §450.3192, allows nonprofit corporations to assume much of the liability of their directors and to indemnify their officers and directors for certain acts.

This is accomplished through the proper drafting of the corporation’s articles of incorporation and bylaws. The costs associated with drafting these documents are comparable to those for the unincorporated association. There is a nominal cost for filing the articles of incorporation with the Corporation, Securities and Land Development Bureau of the Michigan Department of Consumer and Industry Services.

In comparison with an unincorporated association, however, the legal results of establishing a Friends of the Library group as a Michigan Nonprofit Corporation are very certain. The Michigan Nonprofit Corporation Act is quite extensive and very specific in its regulation of the operation of covered entities. Additionally, there is a great deal of case law. Legal counsel will be able to predict with more certitude the outcome of different situations and the implications of different options in establishment and operation. Most Friends of the Library groups in Michigan have chosen to become incorporated under the Michigan Nonprofit Corporations Act.

C) Filing to Become a Michigan Nonprofit Corporation. Becoming a Michigan nonprofit corporation is neither difficult nor expensive. The questions asked on the application will prompt the organizers of a Friends of the Library group to ask all the important questions about the purpose and structure of the organization. The statement of purpose is extremely important and should be drafted with the advice of legal counsel in order to avoid unwanted results or implications.

It is at this stage in the process that a decision must be made between a membership corporation or a directorship corporation. A membership corporation is one in which each member generally has the right of one vote on all matters brought before the corporation. While this may seem to embody the democratic ideal, it often becomes cumbersome as nonprofit corporations grow and decisions need to be made in a more efficient manner. Most nonprofit corporations that expect to involve numerous members in their activities choose the directorship form of organization. Legal counsel for the Friends of the Library will be able to explain the fine points of the options as well as draft the appropriate articles of incorporation and bylaws.

FRIENDS OF THE LIBRARY PART II: FUNDRAISING
A) Fundraising. Friends of the Library should also become knowledgeable about the state laws governing all the activities of the group. Most Friends of the Library are engaged in fundraising for the library. With few exceptions, all organizations must apply for and obtain a license to solicit charitable contributions. This license is obtained from the Michigan Department of Attorney General, Charitable Trust Section. Friends of the Library who do not receive contributions in excess of $8,000 during a 12-month period of any year and who use all volunteers and make a financial statement available to the public may be exempt from the requirement. However, as soon as the organization exceeds the $8,000 threshold, an application for a license must be filed within 30 days with the Attorney General’s Charitable Trust Section. They are also a helpful source of information if the Friends are thinking of hiring a professional fundraiser.

Many other laws govern the typical fundraising activities of Friends of the Library. For example, if a group holds a raffle or conducts bingo or similar games of chance, it must obtain a license from the Michigan Bureau of Lottery, Charitable Gaming Division. If the Friends are engaged in the sale of goods, even used books, at retail, a sales tax license and the collection and remittance of sales tax is generally required.

B) 501(c)(3) Status. There are two basic reasons why a Friends of the Library might seek tax-exempt status under Section 501(c)(3) of the Internal Revenue Code: a recognized organization is not subject to federal income tax and donations to the organization are tax deductible as provided by the code. Other advantages of acquiring federal tax-exempt status may occur on the state level. Although recognition as a tax-exempt organization by the IRS does not automatically mean exemption from Michigan taxes, there are various exemptions from income, property or sales and use taxes. For instance, 501(c)(3) organizations whose retail sales do not exceed $5,000 in a calendar year may be exempt from sales tax. Legal counsel will be able to advise Friends of the Library in regard to other advantageous provisions.

501(c)(3) status does not come free of restrictions and requirements. An annual report is required under most circumstances. Tax-exempt organizations are somewhat restricted in their ability to lobby and influence legislation. Income taxes may be imposed on “unrelated business activities.” Friends of the Library should be especially careful about participating in any election campaigns, including ballot questions, without first consulting legal counsel. All of these matters should be discussed on a regular basis with legal and financial professionals.

Although the process of applying for 501(c)(3) status requires care and attention to detail, the advantages far outweigh any difficulties associated with the process. The first step is to obtain the proper forms. Publication 557, “Tax-Exempt Status for Your Organization,” published by the Internal Revenue Service, is a good place to start. This booklet describes the application and approval process, which forms must be used and the types of information required. There is an extremely helpful discussion of which organizations must apply for recognition and which are not required to file.

The application itself must be submitted by Form 1023 and Form 872-C. There is a one-time filing fee. The form may be long, but it is not mysterious. The Friends of the Library, in anticipation of an appointment, can gather much of the information requested through legal counsel. The forms are available free of charge from the Internal Revenue Service.
One of the most important reasons for incorporating a Friends of the Library as a Michigan nonprofit corporation, as well as obtaining 501(c)(3) status, is the assurance provided to library donors that the organization is being operated in accordance with law and with a certain measure of accountability to the public. This assurance can assist in immeasurable ways with any fundraising activities the Friends of the Library may choose.
(Originally published on the Library of Michigan website, www.michigan.gov/libraryofmichigan. Reproduced with permission by the Library of Michigan.)
Posted by Mary Wreford; Approved by Lea Ann Sterling, Esq., November 15, 2007.

The information presented in this article is for general information only and should not be construed to be legal advice.

Sterling Law Office’s immigration attorneys report that a federal judge in San Francisco has temporarily blocked implementation of a new Department of Homeland Security (DHS) rule regarding “no match” letters, set to have been effective in September. The new rule could cause U.S. citizens and other authorized workers, including those living in northern Michigan, to lose their jobs if their employers receive a Social Security Administration (SSA) notice that the employee’s Social Security number and name do not match federal records. The new court order from federal District Court Judge Charles Breyer delays the rule that would expose employers in northern Michigan and throughout the U.S. to prosecution, if the employers refuse to fire “no match” workers.

“If allowed to proceed, the mailing of no-match letters, affecting more than 8 million workers…would result in irreparable harm to innocent workers and employers,” Judge Breyer ruled.

The federal lawsuit against the new rule, filed by AFL-CIO, ACLU, and other labor/immigration groups in the San Francisco area, charges that the misguided rule violates the law and workers’ rights, imposes burdensome obligations on employers, and will cause discrimination against workers who are perceived to be immigrants. Furthermore, the plaintiffs charge, the “no match” letters are filled with errors.

“More than 70 percent of SSA discrepancies refer to U.S. citizens, but the DHS regulation would encourage employers to fire any worker based on these erroneous discrepancies, especially if she has an accent or is perceived to be foreign-born,” said John Sweeney, president of the AFL-CIO. The court will issue a final decision on implementation of the new rule, possibly after a trial

For years the SSA has sent “no match” letters to employers if the name and Social Security information reported by a worker on a W-2 form does not match up with the information contained in SSA databases. The “no match” letters were never considered proof that an employee did not have permission to work in the U.S, and currently employers who receive “no-match” letters are not required to take any action at all. There are many innocent reasons for such discrepancies, such as clerical mistakes, name changes due to marriage and divorce, and the use of multiple surnames that are common in many parts of the world.

Under the new DHS rule, employers receiving “no match” letters might be required to fire employees whose SSA discrepancies are not resolved within 90 days after the employer receives the “no match” letter. If the employer does not respond to a “no match” letter, DHS may conclude that the employer had “constructive knowledge” that an employee was not authorized to work in the U.S., and may prosecute the employer accordingly. The rule places employers in the untenable position of firing valued employees, violating discrimination laws, or breaking the rule.

“This is only one single measure in a whole bucket full of measures,” said Homeland Security Secretary, Michael Chertoff. “We’re going to continue to turn the heat up on employers who knowingly and systematically violate the law.”
However, the problem with this rule is that it also ensnares innocent employers and workers in its wide net.

Sterling Law Office will continue to monitor developments in this matter. Our immigration attorneys stand ready to assist northern Michigan employers and workers to comply with all, increasingly complex immigration laws. More reading on the federal lawsuit against the “no match” rule may be seen at www.aclu.org/nomatch
Posted by Mary Wreford; Approved by Lea Ann Sterling, Esq., October 15, 2007.

The information presented in this article is for general information only and should not be construed to be legal advice.

Sterling Law Office Attorney Lea Ann Sterling believes that we all want and expect the justices who sit on the Michigan Supreme Court to be fair, impartial, and free from financial entanglements with special interests. Unfortunately, Michigan’s method of selecting state Supreme Court justices is marked by million-dollar election campaigns that rely on donations from special interest groups. Once seated, the justices are subject to no explicit rules of disqualification for conflicts of interest. Indeed, Michigan Supreme Court decisions of recent years overrule decades of precedent and often seem biased against the insured, the employee, the environment, and the victim of negligence. The system is broken and undermines the public trust and confidence in the Court. This is a recipe for trouble that Lea Ann has been busy working to change.

Lea Ann has been helping to organize a community forum to explore this controversy and search for a remedy. The event, “Courting Trouble: The Threat to a Fair, Open, and Independent Supreme Court,” is scheduled for Thursday, October 25, 2007 from 7:00 to 9:00 p.m., at Oleson Center, Northwestern Michigan College campus.

Speakers will include Detroit Free Press columnist Brian Dickerson, who will describe the controversial decisions of the Michigan Supreme Court and their effect on Michigan citizens. Rich Robinson, Executive Director of the Michigan Campaign Finance Network, will discuss the toxic impact of big money judicial election campaigns. Michigan Supreme Court Justice Elizabeth Weaver is an invited guest and she may address the forum. Proposals for statewide change to address this problem will likely include:

* Public funding of Supreme Court elections
* Conflicts of interest rules
* Full and timely disclosure of campaign contribution sources

Bring your input to the public discussion. You will learn what you can do to bring about the changes needed to restore the Michigan Supreme Court to one that is fair, open, and independent.

The League of Women Voters, the Michigan Campaign Finance Network, the Northern Michigan Environmental Action Council, the Traverse City Record-Eagle, and Leelanau Independent Women for Democratic Action are sponsoring this important event. For more information, contact Lea Ann Sterling, a member of Leelanau Independent Women for Democratic Action, at Sterling Law Office, 231-326-4010 or toll free 877-221-7628.
Posted by Mary Wreford; Approved by Lea Ann Sterling, Esq., October 9, 2007

The information presented in this article is for general information only and should not be construed to be legal advice.

You do. Actually, pretty much everyone does who has any real estate, personal or household property, savings or investments which they wish to leave to particular heirs. Without a will, the State can decide who will inherit all of your assets. You also need an estate plan if you have wishes and preferences about, for example, how medical choices and treatment will be handled if you cannot oversee treatment yourself, who will manage your bills and bank accounts if you are unable to do it, or what will happen to your remains after death. If you have children or other people dependent upon you, who need you to select a guardian for them in the event of your death, you absolutely need an estate plan. Furthermore, with an estate plan, you can keep young adult children from fully accessing an inheritance before they are wise enough to manage it responsibly.

“Estate plan” may suggest to some a portfolio of documents for the very well-to-do who own large “estate” properties and investments. Indeed, estate plans are for such individuals, but they are for everyone else, as well, who wishes to make end-of-life choices. At Sterling Law Office, we have experience preparing last wills and simple estate plans, starting at a cost of around $500. These very economical directives provide for a wide array of extremely important issues. Some of the choices that can be specified in an estate plan include:

∙ Listing real estate, personal, or household items to be left to a specific person, or financial gifts to persons or charities;

∙ Naming your personal Patient Advocate, who has authority to consent to or decline medical treatment for you; can approve admittance or discharge to medical treatment facilities, including hospitals, rehabilitation and nursing centers; will have access to medical records; and can employ caregivers;

∙ Selection of a guardian for minor children or incapacitated adults, so the guardian won’t get selected by default in probate court; and selection of a conservator or trustee to safeguard the property and financial accounts of children;

∙ Measures to help reduce inheritance taxes on your heirs, and to protect the family home or cottage for future use by an extended family;

∙ Instructions on donation of organs and tissue, or your wishes regarding memorial or funeral services, and for internment of your remains;

∙ Specification of how much or how little medical treatment you want in the event that you become unable to speak for yourself;

∙ Establishing a fund for the care of pets or domestic animals in the future.

As this partial list of estate plan topics shows, putting last wishes on record is essential for all of us.

Taking responsibility to initiate the estate planning process will ensure that your end of life, whenever it comes, is managed according to your wishes. It will spare your dependents and heirs from unnecessary uncertainty, expense, and wrangling with the probate court. An estate plan is an elemental part of preparing for the future of yourself and those you love.
Posted by Mary Wreford; Approved by Lea Ann Sterling, September 24, 2007

The information presented in this article is for general information only and should not be construed to be legal advice.

When planning a large, complex gardening project, many people would want a professional landscaper to design and carry out the project. On the other hand, if just looking to dress up a perennial bed or put in a few shrubs, a visit to the local garden shop for a question-and-answer session with the staff would likely yield all the guidance needed.

Similarly, when it comes to taking care of legal business, for major, complicated matters that could entail a fight and where the stakes are high, a professional legal advocate is a must, but there are also instances when all that may be required is a little legal coaching. This might apply when purchasing a piece of real estate, entering into an independent contract for some home remodeling, or writing a simple will when there are no minor children or large estates involved. It might be you’re trying to fill out immigration paperwork for a change in residency status or to request a visa extension, or you’re preparing a small-claims court matter, or a straightforward no-fault insurance claim for an auto accident injury. In short, any situation in which you’re going to sign your name to obligate yourself could be one where a legal coach could benefit you substantially by spotting possible pitfalls.

Consulting an attorney may seem daunting and like a big financial undertaking, but it doesn’t always need to be. For people whose legal goals are simple, straightforward, and limited, or who’d just like help pinpointing exactly what their legal goals are, Sterling Law Office offers such legal coaching.

In our Empire Village office, clients can make a one-time appointment to meet in a comfortable, friendly atmosphere with very knowledgeable and experienced attorneys. Sterling Law Office staff can evaluate and explain legal questions, contracts, applications, and other matters on a simple, hourly fee basis. At such initial consultations, clients receive a professional assessment of whether more legal assistance is in order, and if so, an estimate of the cost of proceeding, as well as a breakdown of the risks/gains of different courses of action. When clients meet with us, they leave with information and the reassurance that legal paperwork or actions they’re undertaking will be done right. We respect our clients’ budgets, and we always pursue the course that will bring the best outcome with the least amount of contention and cost.

Once a client has got that foot in the door at our office, they have an on-call advocate and legal adviser for whenever and whatever legal hurdles they find further down the road. Because we have expertise in family law, divorce, adoptions, parent and grandparent rights, personal injury and construction accidents, wills/estates and probate, small business and real estate contracts, immigration law, and Social Security Disability, Sterling Law Office can give legal coaching in a wide array of civil law matters. If legal conundrums are causing you worry or uncertainty, give us a call. We can help.
Posted by Mary Wreford; Approved by Lea Ann Sterling, July 24, 2007

The information presented in this article is for general information only and should not be construed to be legal advice.