You would be sued personally if something happened and you had failed to properly (legally) establish a business entity. Also, failing to establish yourself within the requirements if your state's laws could run you afoul of your city/state tax boards, licensing authorities, and the IRS. Dollars to donuts, you can't just make and sell shampoo- too many health issues. STRONGLY recommend you engage with a MI business attorney immediately--BEFORE you attempt to distribute any product and open yourself to personal liability. Best of luck to you (don't let the bureaucracy of the process get you down!
NOT LEGAL ADVICE. FOR EDUCATION AND INFORMATION ONLY. DO NOT RELY ON ANY ADVICE YOU RECEIVE FROM ME OR ANY OTHER ATTORNEY IN THIS FORUM. Legal advice comes after a complete review of the facts and relevant documents and an expressed (written) agreement of representation that forms attorney-client confidentiality. Neither of these two events can occur in this forum. Mr. Rafter is licensed to practice in the Commonwealth of Virginia and the US Federal Courts in Virginia. His answers to any Avvo question are rooted in general legal principles--NOT your specific state laws. There is no implied or actual attorney-client relationship arising from this education exchange. You should speak with an attorney licensed in your state, to whom you have provided all the facts before you take steps that may impact your legal rights. Mr. Rafter is under no obligation to answer subsequent emails or phone calls related to this or any other matter.
In addition to complying with Michigan law, you will also need to comply with Federal laws and regulations, particularly regulations promulgated by the FDA. Please discuss your plan with a business attorney before proceeding further.
You haven't identified the other parties involved in this question so I cannot determine whether I may have a conflict in this matter. Should it turn out that I have an attorney-client relationship with any of the other parties, my response to this question will not prevent me from continuing to represent an existing client.
You have a host of intellectual property issues and labeling issues that you need to address. See a Michigan business attorney familiar with both areas of the law in order to determine what you need to do.
I am not your lawyer and you are not my client. Free advice here is without recourse and any reliance thereupon is at your sole risk. This is done without compensation as a free public service. I am licensed in IL, MO, TX and I am a Reg. Pat. Atty. so advice in any other jurisdiction is strictly general advice and should be confirmed with an attorney licensed in that jurisdiction.
Hair shampoo and conditioners are regulated by, at least, the Food and Drug Administration as "cosmetics." Visit the link below to read just an overview of the rules that apply to the manufacturer, packaging and advertising of cosmetics. Your own attorney needs to assist you to comply with those rules. Query Google for [ cosmetics attorneys ] to locate one with experience in this area. You should also read an article about the regulation of cosmetics and familiarize yourself with the information published by the leading cosmetics trade group, the Personal Care Products Council [visit the links below].
You will also need assistance in forming a company through which you'll need to business and drafting an agreement between your company and the salon owner. Good luck.
The above response is general information ONLY and is not legal advice, does not form an attorney-client relationship, and should NOT be relied upon to take or refrain from taking any action. I am not your attorney. You should seek the advice of competent counsel before taking any action related to your inquiry.