Year End Matters to Safeguard Your Business
Once again, Thanksgiving is here and we are approaching the holiday season. Before your social calendar kicks into high gear, we recommend that you schedule time to conduct an annual review to make sure your business is ready to roll into 2020. The review should address the following topics:
- Contracts – Are any of your contracts, including leases, up for renewal? Do you need to give notice of termination or renewal? It is wise to diary these dates in advance so you do not inadvertently miss a critical deadline.
- Operating and Shareholders Agreements – Revisit your company’s operating or shareholders’ agreements to make sure the company has protected itself from an unforeseen death or disability of a business owner or key employee as well as any other unforeseen risks to the company.
- Employment Agreements and Policies – Make sure your key employees, as well as employees who interact with customers/clients have executed employment agreements with non-solicitation provisions in order to protect your company from them taking customers if they leave the company. Update your employment manual to reflect any changes in the law.
- Loans – Review and update loan agreements.
- Annual Reports and Filings – Make sure that you maintain good standing in the jurisdiction in which the business was incorporated and any other jurisdictions in which it is registered to do business, by filing all required annual reports. Failure to keep up with these reports will cause you to incur additional costs and may result in the administrative dissolution of your entity.
- Minutes – Prepare and file shareholder and director minutes for all transactions that were not undertaken in the ordinary course of business – for example new long-term contracts, leases, executive salary increases, bonus plans or distributions, benefit plans, and shareholder or commercial loans.
- Tax Planning – Review tax planning and related issues with your accountants and legal advisors to ensure that you can take any necessary actions before the end of the year.
Please contact any of the attorneys in Pabian & Russell’s Business Law practice group if you would like to discuss these issues or anything else related to your business.