Business year-end is a good time to reflect on your business organization. A sole proprietorship is the most common form for small businesses to take, but is it really the best choice for your business? As you prepare your tax forms, calculate the taxes you would have to pay if you were to convert your business to a corporation or an LLC. If you are considering incorporating, targeting a January 1st effective date can make preparing your annual financial statements less complicated. Get the help you need to incorporate your business.
Prepare Your Tax Paperwork.
December is also a good time to reflect on your taxes. Consider taking time now to review your paperwork and identify any issues that may arise with the Internal Revenue Service. Better yet, consult a tax advisor and see if you qualify for any additional deductions. Tax deductions are easy to miss and can save you money.
Review Your Documentation.
It's also a good idea to go through your business documentation and clean it up to start the year fresh. Update your Business Plan, remove old paperwork, correct mistakes, and make a list of any new licenses or renewals that you may be required to apply for. When you return to business in the New Year, no matter what form your business takes, you'll know that your records are in good order (or well on their way to being corrected).
Provide Feedback to Your Employees.
Your employees are critical to the success of your company. Take some time at the end of the year to provide Employee Evaluations, so every team member knows where they stand and what you expect in the coming year. Also make sure you have the right contracts and policies in place with every employee, like Employment Agreements and a company Employee Handbook. Keeping good records puts everyone on the same page, and it can also help you avoid the cost and hassle of employment disputes in the coming year. See more documents for managing employees.
Set Goals for the Coming Year
The last quarter of the year is a natural time to reflect on, and analyze, your business. Assess whether or not the business is where you want it to be, its prospects for the future, and whether your current business practices are adequate. As you reflect, you can make minor adjustments ahead of the holiday season, as well as set goals for the year to come.
The end of the year is the perfect time to prepare for changes in the law or to your industry. Doing so can help start the New Year strong. If you have questions about year-end planning, incorporating, or updating your contracts and policies, reach out to a Rocket Lawyer network attorney for affordable legal advice.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.