1. Consider Incorporating.The business year-end is a good moment to reflect on your business organization or lack thereof. 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 how much you would have to pay if you were to convert your business to a Corporation or an LLC. If you are considering incorporating, doing so with a January 1st effective date can make preparing your annual financial statements less complicated. Get the help you need to incorporate your business.
2. Prepare Your Tax Paperwork.December is also a good time to reflect on your taxes in general. Consider taking time now to review your paperwork and iron out 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.
3. Review Your Documentation.It's also a good idea to go through your business documentation and clean it up to start the year fresh. Remove old paperwork, correct mistakes, and make a list of any new licenses that you will need 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).
4. Provide Feedback to 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 agreements 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.
5. Set Goals for the Coming Year
The end 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, set goals for the year to come.The end of the year is the perfect time to prepare for changes, so that you can start the New Year with a relatively clean slate. The insight you will gain from this process is invaluable, and can mean the difference between success and failure.
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.