A year-end checklist: Prepare your business for 2015
Vacations are booked. Parties are planned. The small but sure signs of the holiday season have emerged around the office.
But the end of the fourth quarter means a different kind of hustle and bustle for small business owners. With just weeks left in 2014, the year’s end requires an extensive, and often exhaustive, parade of process reviews, sale closings and budget forecasting for the coming business year.
But as the calendar winds down, it’s just as important to tie up legal loose ends to ensure that your business is primed and ready to begin a new year without distraction.
The process can be daunting, but be sure to check these items off your list before the turn of 2015:
1. Tax considerations: At the forefront of year-end planning comes tax preparation. Now is the time to gather your financial reports and make important projections regarding revenue, assets and deductions. Gathering a good estimate now will help you avoid overpayments or underpayments in 2015. It’s also the time to make large purchases, finalize charitable giving and accelerate deductions for the following year — as well as brush up on pending tax law changes for 2015.
2. Trademark renewals: Just because your trademark went live when you started your business, it doesn’t mean it will stay active indefinitely without intentional filings. You may need to file post-registration paperwork, along with paying a renewal fee, to clarify that your trademark is still considered active by the state. The end of the year is an optimal time to ensure your trademark will remain fully active for the coming year.
3. Employee contracts: Many employees work under contract, and it’s imperative to review those contracts at the year’s end. For those coming up for renewal in the next calendar year, do you plan on renewing these contracts? If so, negotiations will likely follow, so it’s important to begin to plan that process now. If you plan to cancel a contract in the coming year, you will want to prepare now by determining appropriate notice periods, entitlements and more.
4. Expiring or renewing leases: The end of the year is a common time for leases to expire, so it’s essential to review these documents and consider renewals or terminations. Like employee contracts, renewals will require negotiation prep work, while looming lease terminations will require extensive planning regarding payments and notices.
5. URL renewals: Especially for small business owners, real estate on the Internet can quickly become an afterthought. However, should you be unaware that your URL is expiring in the coming year, that address can become fair game to anyone. Losing such a critical part of your company’s brand could be disastrous for business, so be sure to check to ensure your URL is safe for 2015. If it’s up for renewal, make plans accordingly.
6. Annual requirements: Depending on your business structure, your company may be required to file annual reports with the secretary of state’s office or conduct annual meetings for shareholders. Understand your legal requirements so that your company remains in good standing, and don’t wait till the last minute to fulfill these critical duties.
7. Website policies: Your website must have “Terms of Use” and “Privacy Policy” provisions visible to inform its users of your company’s security measures and liabilities regarding data use and protections. But the language in these policies can easily become outdated and no longer reflect reasonable security measures or how your company is using data. Reduce your vulnerability by revisiting these policies now — and at the end of every year — to keep the language up-to-date and consistent with industry standards.
Consider walking through this checklist with an attorney to ensure you’re doing your best due diligence for the coming year. After all, there’s nothing like the start of a new year to plant the seed for long-term success.
Darlene Taylor Marsh is a member attorney with Dickinson Wright, PLLC. She focuses her practice in corporate law, commercial real estate law, finance law and environmental law. Reach her at DMarsh@dickinsonwright.com.