The end of the year is a perfect time to address major changes in your life and business through legal documentation and planning. Here are a few items we want to remind our clients to consider before we wrap up another year.
1. Did you sell a business this year? Make sure you take steps to officially terminate and close your business entity if 2016 was its final year in existence. If 2016 was also your business’s final tax year, you will need to close tax accounts with governmental entities as well as prepare closing resolutions to terminate authorizations, liabilities, and business activity.
2. Did you buy or start a business this year or are you continuing a business you already own? It is prudent to prepare annual minutes to document and memorialize the major events of your business for the year. A company speaks through its legal books and records, and so keeping company minutes (at least annually) allows you to document the history of major events and decisions for your business. This is an important process that allows you to later defend and explain company action without having to rely on memory. Among many other uses, company minutes are used in defense of audit, defense of litigation, business valuation, and as evidence of financial and managerial stability to third parties such as purchasers and lenders.
3. Did you have a major life event, such as the birth of a child, marriage, divorce, or death in the family? There are many planning opportunities (and sometimes, planning requirements) after each of these events that you should consider and discuss with legal counsel.
Start 2017 off on the right foot. Call the attorneys at Thomas Law Group to discuss any major changes that happened this year, or will happen next year, and how they will impact your personal or professional life.