Legal Preparation Checklist for the Year

Legal Preparation Checklist for the Year

Every new year brings with it new risks and opportunities. One of the best ways to reduce your company’s risks and capitalize on its opportunities is to plan ahead. Below is a checklist of some of the things you can do now to prepare for what’s ahead.

1. Annual Compliance Review

• Conduct a detailed review of your organization’s compliance requirements. For example:  
• Make sure all recommended corporate (or LLC) resolutions have been adopted and that all required state annual (or bi-annual) filings have been completed on time.
• Confirm all your required licenses and permits are in place or have been timely renewed.
• Bonus Idea: You may also want to engage a legal or audit professional to identify any missing pieces.

2. Contract Audits

• Review all active contracts and agreements to ensure:
• Obligations of all parties have been fulfilled or remain on track.
• Renewal dates and termination clauses are clear and documented.
• Negotiate adjustments for contracts that no longer serve your best interests or reflect outdated market conditions.
• Bonus Idea: Maintain a centralized repository for all your contracts to facilitate easy access and monitoring.

3. Incorporate Changes in Law

• Learn about newly enacted laws and regulations that may impact your operations.
• Assess the implications of these changes on your policies, processes, and documentation.
• Update your internal policies and guidelines.

4. Employee Training

• Regularly conduct training for you employees on:
• Workplace compliance standards and relevant laws.
• Policies on harassment, discrimination, and workplace safety.
• Procedures for handling confidential data and reporting violations.
• Bonus Idea: Use assessments and feedback mechanisms to gauge employee understanding and improve training programs.

5. Intellectual Property Protection

• Conduct an inventory of your intellectual property assets, including:
• Trademarks, patents, copyrights, and trade secrets.
• Confirm required renewal dates for registrations.
• Bonus Idea: Implement confidentiality agreements and non-compete clauses for employees and contractors to safeguard proprietary information.

6. Data Privacy and Security

• Review and update your data privacy policies to comply with the GDPR, CCPA, and other relevant laws and regulations.
• Conduct a data audit to understand how personal data is collected, stored, and used.
• Strengthen your cybersecurity measures, including:
• Install all software updates immediately.
• Provide cybersecurity training for your employees.
• Conduct penetration testing and risk analysis.
• Bonus Idea: Develop and rehearse a data breach response plan.

7. Tax Planning

• Prepare and organize financial records for accurate reporting.
• Consult with a tax advisor or accountant to:
• Understand changes in tax laws.
• Maximize deductions and credits while minimizing liabilities.
• Plan for quarterly estimated tax payments if applicable.
• Consider tax-efficient strategies such as retirement contributions or investments.

8. Risk Management

• Conduct a risk assessment to identify potential legal, financial, and operational risks, and address those issues.
• Review and update your insurance coverages as needed. General liability, professional liability, and cyber insurance policies come to mind.
• Bonus Idea: Develop a contingency plan for potential crises, such as loss of a major client, a supply chain disruption, or a natural disaster.

This is not a comprehensive legal preparation checklist, certainly, but by implementing these strategies for your company, and by engaging outside professionals as needed for additional insights and to assist with implementation, you can help position your company for a successful year ahead.

Disclaimer: This information in this blog is for educational and informational purposes only. It is not legal advice. Portions of this blog were generated using AI.