In December, people sometimes reflect on the year as it draws to a close. On New Year’s Day we may think of what we hope to accomplish in the coming year. Business owners also may face a time of reflection at the end of their fiscal or calendar year. There are several year end business issues that need attention.
Make Sure Contracts and Agreements Comply with Current Law
Sometimes business owners draft their own contracts and agreements. Even if they consulted with an attorney, their business documents may be out of date due to changing laws. Year end is a good time to review documents used in your business. If your documents are still okay, that’s fine. However, you may find that certain language must be changed because laws have changed.
Have Your Business Succession Plans in Place
What would happen to your business if something happens to you? Do you want it to continue operating? Do you have partners or co-owners? This is where a business succession plan comes in, and every business should have one.
Your business succession plan guides co-owners in choosing a successor to cashing out your interest. Typically, insurance policies provide the money needed for a buyout.
Are Business Records Current?
Business entities are required to keep records. For example, you may be required to produce personnel records, expense records, corporate minutes, and tax records if requested by a government agency or shareholder. Again, the records you keep are determined by the type of business structure you have. Take time now to make sure everything is assembled for the next step.
Remember Upcoming Annual State & Federal Filings
Many businesses are required to file annual registrations or reports. Just about everyone files tax returns. In fact, an Alabama business may file an annual report along with its Business Privilege tax return. As you think about year end business issues, you may begin preparations for these documents. When it’s time to file them, you’ll be ready.
Running a Business Requires Careful and Ongoing Planning
When you need an attorney, call Bruce Adams. He has the skills and experience to help with your business and estate planning concerns. Please contact us at 256-237-3339 to set up an appointment. Our office is located in Anniston, Alabama, but we assist clients in surrounding communities like Oxford, Jacksonville, Heflin, Gadsden, and Pell City.