Can you believe we're already approaching the end of another year?
As a small business owner, you've probably spent most of the year taking care of clients, managing employees, putting out fires, and trying to keep everything moving forward. It's exhausting sometimes, I know!
But before you jump into planning for next year, there's something important you should do: Take a look at the legal side of your business.
Just like you review your finances, goals, and business performance, you should also review your legal foundation. Things change throughout the year, and those changes can create legal responsibilities that are easy to overlook when you're busy running a business.
Here are five things I recommend Florida business owners review before the new year.
1. Document Major Business Changes
Did you bring on a new owner, change your business structure, take out a loan, or make another major business decision this year?
These changes may need to be documented in your company's records and reflected in your governing documents.
Take a few minutes to list the major decisions you made throughout the year. This will make it much easier to prepare your Annual Minutes or Written Consents and identify anything that still needs attention.
2. Review Your Contracts
Are you still using the same client agreements you used at the beginning of the year?
Maybe you've changed your services, pricing, payment terms, or the way you work with clients. If so, your contracts may need some attention, too!
Don't forget about your vendor contracts. Check renewal dates, cancellation deadlines, and any automatic renewal provisions. You don't want to discover that you're locked into another year of a service you no longer need.
3. Check Your Regulatory Compliance
This is an important one!
Review your business licenses, professional certifications, permits, and other regulatory requirements. Have any rules changed in your industry? Are there renewals coming up?
And don't forget your Florida Annual Report! Corporations and LLCs generally must file their Annual Reports with the State of Florida between January 1 and May 1 each year.
Put that deadline on your calendar now. Missing it can result in expensive penalties and eventually administrative dissolution of your business entity.
4. Review Your Workers and Internal Policies
Did you hire employees or independent contractors this year? Have their responsibilities changed?
Make sure your worker agreements reflect the actual working relationships and that your workers are classified appropriately.
This is also a good time to review employee handbooks, internal policies, and procedures. If the way you operate has changed, your documentation should reflect those changes.
5. Take Care of Your Annual Entity Governance
Here's something many business owners overlook: Filing your Annual Report on Sunbiz isn't the same thing as maintaining your company's internal records.
Depending on your entity type and governing documents, you may need to hold annual meetings, prepare minutes, or document decisions through Written Consents.
These documents don't get filed with the State of Florida. They're kept in your company's records book and help establish that you're operating your business as a separate legal entity.
Maintaining these records is an important part of supporting the legal foundation you worked to establish when you formed your business.
Make It an Annual Habit!
Here's my recommendation: Block off some time on your calendar every year to review these things.
You don't have to tackle everything in one day. The important thing is to make time to THINK about what has changed and TACKLE what needs attention.
You may discover that everything is in great shape. Wonderful! Or you may find a few things that need to be updated before they become bigger problems.
Either way, you'll be starting the new year with a better understanding of where your business stands.
And if you're unsure whether your corporation or LLC has been properly maintained, a Business Audit can help identify missing documents, governance issues, and other gaps in your legal foundation.
A little legal housekeeping now can save you a lot of headaches later.
Happy planning!
Information in this journal post is for general informational purposes only. Nothing in this journal post should be taken as legal advice for your individual situation. Viewing this journal post and/or contacting us does not create an attorney-client relationship. Please do not send confidential information to us until an attorney-client relationship has been established.