Quarterly Compass 7/1/25

Welcome back to “The Quarterly Compass,” the email newsletter of True North Legal Group. This resource is designed for entrepreneurs, small business owners, executives, and business-minded professionals in Northern Michigan.

Every quarter, we’ll head in four directions. First, the “East” section (directly below) will be dedicated to legal updates from TNLG that may be relevant to your venture. Then head “South,” where we’ll highlight a local business or entrepreneur doing great things in Northern Michigan. Out “West,” you’ll find information about future events or developments that may soon impact you, your business, or your employees. Finally, True “North” will include a short, actionable insight for personal or business growth.

No matter your bearing, we hope you’ll find “The Quarterly Compass” to be a helpful resource along the way.

AI Policies in the Workplace

Small businesses can’t ignore AI any longer. New laws and big risks mean it’s time to set clear rules—before the problems start.

Why You Need an AI Policy Now

Tools like ChatGPT are everywhere. Surveys show 43% of employees already use AI at work, often without telling their boss. The catch? They may be pasting in confidential data. Once that info is in an AI system, it’s logged and potentially exposed to others. Just last year, Samsung banned ChatGPT after an engineer leaked proprietary code.

If a giant can slip up, any business can.

Meanwhile, regulators are catching up. The U.S. Department of Labor recently issued guidance calling for human oversight and transparency in workplace AI. The EEOC also settled its first AI-bias case, forcing a company to pay $365,000 after an algorithm allegedly screened out older applicants.

Michigan lawmakers have joined the trend. Late last year, the state banned deepfake political ads near elections. Now, Lansing is considering bills to criminalize malicious AI use and mandate safety protocols for high-risk AI. Even if these laws aren’t final yet, momentum is clear: business leaders must get ahead of this.

What’s at Risk

Unchecked AI use creates serious liabilities:

Data Privacy: Employees could feed customer data or trade secrets into AI tools that don’t guarantee confidentiality. Once it’s uploaded, you lose control.
Bias and Discrimination: AI recruiting tools can unintentionally exclude protected groups. Discrimination laws still apply, no matter how advanced the software is.
Intellectual Property: AI-generated content can infringe on copyrights—or create work you don’t fully own.
Accuracy: AI can “hallucinate,” making up facts with confidence. If you rely on those outputs without checking, you’re liable for the mistakes.

Ignoring these risks is not an option. Even small businesses can face steep fines, lawsuits, or brand damage.

How to Build a Solid Policy

1. Audit Current Use: Find out who’s already using AI, and for what. You can’t manage risks you don’t see.

2. Set Boundaries: Define what data can never be shared with AI—like customer records, financial info, or proprietary code. Consider requiring approval for any AI tools beyond a pre-approved list.

3. Ensure Oversight: If AI helps with hiring, performance reviews, or promotions, make sure humans still review key decisions. Document how tools are tested for fairness.

4. Train Your Team: Policies don’t work if no one knows them. Explain clearly how and why the rules matter. Encourage questions.

5. Update Often: Laws and technology evolve fast. Assign someone to watch for new legal developments and revise your policy as needed.

Why It Matters

AI is a powerful tool, but also a legal minefield. Setting policies now protects you from headaches later. Think of it like cybersecurity: better to build defenses before something goes wrong.

If you’re unsure where to begin, consider connecting with legal counsel to craft a policy tailored to your business. This small step can save you from big problems down the road.

Allium Hill: Growing the Dream in Northern Michigan

In the summer of 2023, a close friend invited me to a bucolic property in Leelanau County, promising an afternoon of camaraderie and cuisine. Little did I know that I would be hand-digging hundreds of elbow-deep holes in the Northern Michigan sandy soil, preparing “Allium Hill” for what is now a flourishing vineyard. On that summer day, I came to know Tim Kemp and Sarah Hesterman even better than I had before, and our friendship has grown to include a professional relationship as Allium Hill endeavors to bring a world-class agritourism business to our region.

Learn more about these fantastic people and their future vision in the following Q&A:

1. What inspired you to build your lives and your business in Northern Michigan?

We both grew up in Michigan, and Leelanau County was always our favorite summer escape. After twenty years in Brooklyn, New York, we spent the summer of 2020 at a family cottage in Omena. Sitting at Farm Club one evening, we looked around and said, “This is the dream.” We’d always imagined opening a farm-based bed & breakfast, and in that moment, it felt like the right time and place. In the fall of 2020, we bought the farm and moved here to create Allium Hill—an immersive agritourism destination inspired by the agriturismos we love abroad. We bring years of hospitality experience, a passion for cooking and entertaining, and a love for food, wine, and agriculture to craft a unique guest experience.

2. What are the key characteristics of this community that have helped you launch and grow?

The food, farming, wine, and hospitality community here is amazing—supportive, inclusive, and collaborative. We’ve met so many small business owners who have become great friends and our biggest champions. The area is small enough that it’s easy to connect and build relationships, and everyone genuinely helps each other out. Traverse City’s reputation as a “foodie” destination has attracted national press, bringing more visitors and momentum for ventures like ours.

3. What excites you about the next twelve months of your business?

This summer marks our first full season of guests, which feels like a big milestone. We have several projects and new amenities in the works that will continue to grow Allium Hill. And our baby vineyard, planted two years ago, is finally starting to look like a real vineyard—we’re looking forward to our first harvest in the next year or two.

Interested in a uniquely intimate and distinctly local stay for yourself or out of town guests? Learn more about Sarah, Tim, and their beautiful project at www.alliumhill.com.

Small Biz Tax Breaks Set to Expire

If you’ve paid attention to the debates happening in Washington, you know that small business owners face a potential tax “cliff” in the coming months. Key provisions of the 2017 Tax Cuts and Jobs Act – especially the 20% deduction on pass-through business income – are scheduled to expire Dec. 31, 2025. If Congress does nothing, many sole-proprietors and S‑Corp owners could see their effective tax rates jump. In practice, that means significantly higher federal taxes on small business profits next year at a time when tariffs continue to impact the bottom line.

This matters because millions of entrepreneurs will either lose a valuable break or see it reduced, squeezing take-home earnings. Business owners should watch Congress closely: House and Senate tax bills already include rival proposals to extend or even boost the pass-through deduction. Any deal (for example, a final tax bill or budget reconciliation) will determine whether these tax cuts survive. Small businesses should consult their accountants now and plan for both scenarios – and keep an eye on Washington’s tax debates.

The Compounding Effect of Consistency

In work and in life, we tend to expect progress to feel dramatic—like a clear turning point or a big breakthrough. But most of the time, it doesn’t look that way. Real progress is the result of steady, often ordinary actions that quietly add up: the daily effort, the follow-up email, the honest conversation, the habit you repeat even when no one’s watching. It’s easy to get discouraged when your expectations don’t match reality. But consistency is what compounds into trust, skill, and meaningful results over time.

Quite simply — Keep Showing Up.

Thank you for reading “The Quarterly Compass,” the email newsletter of True North Legal Group designed to help small business owners, entrepreneurs, executives, and business-minded professionals in Northern Michigan.