4 New Year's Resolutions for Your Business

Just like people set New Year’s resolutions to improve their health, wealth, and everything in between - you should set resolutions for your business to ensure continued success in 2020 and beyond.

In this article, we are going to discuss four resolutions that you need to do in the new year:

1. Make Sure You Have an Up to Date Operating Agreement

2. File Your Annual Report

3. Reassess Your Liabilities

4. Review Your Contracts

1. Make Sure You Have an Up to Date Operating Agreement

If you’ve watched any of the videos on the Lyda Law Firm YouTube Channel, you know that we like to talk about operating agreements. That’s because they are one of the most important documents for any business, regardless of size or industry.

Your operating agreement is basically the founding document for your business. It’s what outlines how your business will operate and it differentiates yourself as an individual from your company.

If you don’t have an operating agreement, you need to get one ASAP. If you do have an operating agreement, make sure it is still applicable in 2020 by consulting with a licensed professional in your state.

2. File Your Annual Report With the Secretary of State

All businesses need to file an annual report with the Secretary of State. You don’t need to do this at the start of every year, but you do need to do it every year - typically one year after the expiration of your business registration.

The process is very simple and can be done online in just a couple of minutes. It’s very similar to the process of registering your business in the first place. 

If you don’t do this every year, your business license could lapse, which is obviously not a good thing. Also, make sure to do it on time. It’s usually very cheap, but the late fees can be pricey.

3. Reassess Your Liabilities

When you first start your business, you need to assess your liabilities and determine your insurance needs. You should revisit this process every year because you’ll learn more about your liabilities as your business grows.

It can be helpful to look back at the year and think about all of your vendors and all of your customers. Did anything change in the past year that could alter the types or levels of insurance you need?

4. Review Your Contracts

Just like your liabilities and insurance needs can change from year to year, so can your contract needs. In fact, some businesses review their contracts quarterly to ensure they are still up-to-date.

It is generally a good idea to hire a small business attorney to review your contracts. They will know what to look out for and they will know the right questions to ask.

It might also be a good idea to utilize a different attorney every year. It never hurts to get a variety of opinions to ensure that all of your bases are covered.

So there you have it, four things that your business MUST DO every year to protect your business and prepare for the future.

As always, if you have any questions, feel free to contact us.