Is Your Business Ready for the New Year? A Handy Checklist for Business Owners

The new year is finally here. Time to sweep up the confetti, discard the empty champagne bottles, and tackle all your business’s year-end obligations so your company is up to date and in compliance in the New Year.

I know you’d rather be thinking about things other than business compliance and tax paperwork right now. But unfortunately, you need to attend to those to-dos if you want to put your business on the right path and avoid costly fines and penalties.

What should you have on your radar screen so you can neatly wrap up the old year and be ahead of the game?

Here’s a checklist to help:

1. Submit your annual report.

Although there are a few exceptions, most states require LLCs and corporations to create an annual report either every year or every other year. Does this apply to you? Check your state’s requirements so you don’t miss filing yours. When filing an annual report, you must complete it by a specific annual due date, which may be one of the following:

• The anniversary of your incorporation date
• The date that your annual tax statements are due
• The end of the calendar year

If you file your annual report late, you could get hit with penalties and late fees. But better late than never, so make sure you create and file yours even if you’re running behind schedule.

2. Renew business licenses and permits.

If your business needs licenses and/or permits to legally operate, make sure your find out which of them need to be renewed. Contact your municipality, county, and/or state offices to find out. If you don’t have the time or don’t want to be bothered with that, you might consider asking a legal filing service to track down the requirements and administrate the renewals to keep them up to date.

3. Make sure your accounting records are in order.

It won’t be long before you need to file your taxes. Why make it more painstaking than it has to be by having your financial and tax information in disarray? Now is the time to organize your paperwork for your accountant or tax preparer. Make sure you have accurate record of your business income, expenses, charitable giving, tax payments, etc., and keep receipts and your last couple of years’ tax returns close at hand in case you need to refer to them.

4. Send 1099s to any independent contractors you used.

If you pay a subcontractor $600 or more during the tax year, you’re required to send them a 1099 form. It discloses the compensation you paid them throughout the year. You are responsible for filling out the appropriate 1099 tax form and sending it to independent contractors by Jan. 31, 2017.

5. Hold your member/shareholder meeting and write/save minutes of what was discussed.

If required, don’t forget to hold your LLC or corporation’s annual meeting before the year has come to a close. When you do, remember to generate written minutes of what took place. And also get your members (if an LLC) or shareholders (if a corporation) to sign off on those minutes.

6. Review your current legal business structure’s effectiveness with your accountant and attorney. Does it make sense to make a change?

If you’re running your business as a sole proprietorship or partnership, you may be wondering if it’s still the best option for your growing business. Before the new year moves too far along, consider talking with legal and financial professionals to find out if you might be better off forming an LLC or incorporating your business.

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