As the leaves change and the days grow shorter, the crisp air of fall often signals a return to focus. For businesses, especially family firms, it’s an ideal time for a proactive “legal checkup” to ensure you wrap up the year strong and step into the new one on solid ground. Addressing key legal areas now can prevent costly surprises, ensure compliance, and set the stage for next year’s success.

At The Bloom Group LLC, we specialize in guiding businesses through these critical annual reviews, ensuring your operations remain legally sound and strategically aligned. Here are five essential legal areas every business should examine before the year officially ends.

1. Corporate Governance & Annual Filings Review

   Your business’s legal foundation needs regular inspection. Before year-end, ensure your corporate records are meticulously maintained and compliant.

   • Annual Reports & Filings: Most states require LLCs and corporations to file annual reports or statements of information. Confirm all necessary filings are up-to-date with the Secretary of State or relevant authorities. Missing these deadlines can lead to fines, penalties, or even loss of “good standing.”
   • Meeting Minutes: If your business is a corporation, ensure all annual shareholder meetings and board of directors’ meetings have been held and their minutes properly recorded and stored. For LLCs, review your Operating Agreement for any required member meetings or resolutions.
   • Organizational Documents: Review your Articles of Incorporation/Organization, Bylaws, or Operating Agreement. Have there been any changes in ownership, management, or operational structure that necessitate amendments?

2. Contract & Commercial Agreement Audit

   Take a proactive stance on your business relationships and obligations.

   • Key Contracts: Go through your major vendor agreements, client contracts, and lease agreements. Note renewal dates and termination clauses. Are the terms still favorable, or do you need to negotiate new terms for the coming year? This is an opportunity to streamline costs or improve service.
   • Automatic Renewals: Identify any contracts with automatic renewal clauses. Decide if you wish for these to continue or if you need to provide timely notice for termination.
   • Supplier Agreements: Review agreements with key suppliers. Have there been any supply chain issues or price changes that warrant renegotiation or exploring alternative vendors?

3. Employment Law & HR Compliance Check

   With year-end bonuses, performance reviews, and potential seasonal hiring, ensuring HR compliance is crucial.

   • Policy Updates: Review your employee handbook and internal HR policies. Have there been any new federal, state, or local employment laws enacted that require updates to your policies on wages, leave, discrimination, or workplace safety?
   • Employee Classification: Confirm that all your workers are correctly classified as employees or independent contractors to avoid legal liabilities.
   • Performance Reviews: If your business conducts annual performance reviews, ensure you have a fair and consistent process. For family businesses, this is especially important to maintain objectivity and prevent perceptions of favoritism among family and non-family employees.

4. Intellectual Property Protection Review

   Your business’s unique assets need to be safeguarded continually.

   • Trademarks & Copyrights: Verify that your existing trademarks and copyrights are properly registered and renewed. Have you created any new branding, logos, products, or marketing materials this year that require new intellectual property protection?
   • Trade Secrets & Confidentiality: Review your measures for protecting trade secrets and proprietary information. Are your non-disclosure agreements (NDAs) with employees, contractors, and partners up-to-date and robust?
   • Data Privacy: Reassess your data privacy policies and practices for compliance with evolving regulations like GDPR or CCPA. Ensure your handling of customer and employee data is secure and transparent.

5. Tax & Financial Preparations (with a Legal Eye)

   While largely an accounting function, there are legal implications to year-end financial activities.

   • Record Keeping: Ensure all financial records, including income statements, expense reports, and payroll data, are organized and complete for seamless year-end tax filing.
   • Distributions & Capital: If your entity allows for it, and you plan to make year-end distributions to owners or change capital contributions, ensure these actions are properly documented and adhere to your Operating Agreement or Bylaws.

A diligent fall legal checkup is not just about avoiding problems; it’s about positioning your business for stability and growth. By taking these proactive steps now, you can mitigate risks, reinforce your legal standing, and transition smoothly into a successful new year.

Contact The Bloom Group LLC today for expert legal guidance on your year-end business review and to ensure your firm is legally prepared for all that lies ahead.