Business Planning: Key Legal Tasks to Tackle Before Year-End

06 Oct Business Planning: Key Legal Tasks to Tackle Before Year-End

As the year comes to a close, most business owners are focused on wrapping up finances, setting goals, and preparing for the year ahead. While sales forecasts and budgets are often top of mind, one critical area which cannot be overlooked is legal planning. The final months of the year are the perfect time to review contracts, update agreements, and ensure your business is protected against risk going forward. 

Here are some essential legal tasks to prioritize before year-end to keep your business on solid footing.

1. Review Contracts and Agreements

Contracts form the backbone of any business, governing relationships with clients, vendors, employees, and partners. As the year ends, take time to review all key contracts to ensure they are up to date and still reflect your business’s needs.

• Client and vendor contracts: Confirm the terms remain fair, timelines are accurate, and payment provisions are still in line with your operations.
• Employment agreements: Review employee contracts, independent contractor agreements, and workplace policies. Updates may be required if there have been legislative changes or if you’re introducing new benefits or responsibilities. 
• Partnership agreements: If you’re in business with partners, verify the roles, profit-sharing 

Keeping your contracts updated helps reduce the risk of disputes and ensures all parties are operating under clear expectations. 

2. Prioritize Succession Planning

Succession planning isn’t just for large corporations – it’s a smart strategy for any business, regardless of size. Unexpected changes such as illness, retirement, or the departure of a key leader can create serious challenges if no plan is in place. 

By addressing succession planning before year-end, you can:

• Identify potential successors or leadership gaps.
• Document ownership transition plans.
• Ensure shares, assets, or responsibilities are distributed according to your wishes.

Not only does succession planning safeguard the future of your business, but it also reassures employees, partners, and investors the company is prepared for long-term stability.

3. Complete Legal “Housekeeping”

Year-end is also a great opportunity to handle the legal housekeeping tasks which often get pushed aside during busier months. Some key items to consider include:

• Corporate records: Make sure minute books, shareholder agreements, and resolutions are current.
• Licensing and permits: Confirm all business licenses, permits, and registrations are valid for the coming year. 
• Intellectual property: Review trademarks, copyrights, and patents. Renewals or new filings may be required to protect your brand and creative assets. 
• Compliance obligations: Check for changes to industry regulations or tax rules which may affect your business operations.

These smaller tasks may not seem urgent day-to-day, but neglecting them can expose your business to legal risks and potential penalties. 

4. Protect Assets and Reduce Risks

The end of the year is also the perfect time to assess whether your current legal stucture still makes sense. For example, if your business has grown significantly, you may want to revisit whether your corporation, partnership, or sole proprietorship is still the best fit. 

Other steps to consider:

• Review insurance coverage to ensure it aligns with your business size and activities.
• Evaluate risk management policies such as cybersecurity protocols or workplace safety procedures. 
• Revisit debt and financing agreements to ensure repayment terms and security interests don’t put your assets at unnecessary risk.

A proactive approach now can help avoid costly disputes or liabilities in the new year.

Position Your Business for Success in the New Year

Legal planning may not always feel urgent, but it plays a critical role in building a stable, resilient business. By reviewing contracts, refreshing agreements, addressing succession, and completing legal housekeeping, you’ll enter the new year with confidence your business is protected and well-positioned for growth.

If you want guidance tailored to your business, our team at Stewart Esten Law Firm can help. From contract reviews to succession planning, our lawyers ensure you’re legally protected and prepared for the year ahead. Contact us today to discuss your year-end business planning needs and start the new year with peace of mind.