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Everyone knows they should have an annual health check-up, perform routine home and car maintenance, the same holds true for your business.
Failure to perform an annual business checkup and review the legal aspects of your business may result in loss of the legal protection your entity provides and leave you open to personal liability for actions taken on behalf of your business.
The check list below are items you may review and complete in performing your own annual business law checkup.
The list is not exhaustive and is not a substitute for professional legal and tax advice.
Business Structure
Is your company entity structure the best fit
Is your company’s taxation election the most beneficial?
Really hot topic right now because of Tax Cuts and Job Act of 2017
Company Documents
This is an area where most people/businesses fall behind. They prepare documents once then never look at the documents or update the documents again.
Review formation documents, operating agreement or bylaws, ownership documentation, operating/management authority and minutes of meetings
Are all the company documents signed?
Are the documents all up to date?
Do the documents reflect the current state of the company?
Is your annual license filed and up to date with the Washington Secretary of State?
https://www.sos.wa.gov/corps/
Is the information correct?
Is your Department of Revenue account up to date and accurate?
http://apps.dor.wa.gov/BRD/
Are professional licenses up to date?
Has a Buy-Sell agreement been drafted and signed?
Is it funded?
Is all the intellectual property of the company protected?
Review tradenames, trademarks and any patents.
Is there any other intellectual property that needs to be protected?
Contracts
Review the company contracts used in daily operations
Are vendor contracts up to date? -Best pricing? Terms still relevant?
Are client contracts up to date? -Scope of work correct? Time to increase rates or costs?
Should the company be using other contracts that are not in existence?
Is the company/employees doing something on a daily basis that isn’t documented in writing
Liability
Are the company, the members, officers, directors and owners following company guidelines and legal requirements so that there is less of a chance of the “piercing of the company veil” leaving owners open to personal liability?
Are the limits of liability insurance sufficient?
Employees
Are employees following the company guidelines, policies and procedures?
Is the Employee handbook up to date?
Is the Company in compliance with local, state and federal human resource compliance?
Are Employee contracts up to date? Are they signed?
Employees or independent contractors can also review this section in the alternative. Looking at whether their Employee contracts are signed, etc.
Succession
Do you have someone who will take over your business/clients in the event you want to retire or become disabled or pass away?
Is there a succession plan for the business in place?
Review our blog post on this topic.
Have you completed and updated your estate planning?
Review our blog post on this topic.
If you would like a copy of this check list email us! We are happy to discuss any questions that might arise as a result of your annual business law checkup.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only, and should not be construed as legal advice from Leos & Gilkerson, PLLC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a licensed lawyer.