Minnesota Business Owners: A New Year Legal Checklist to Protect and Grow Your Business 

Many chess games are determined by a player’s opening moves, and in business, the same principle applies. Early decisions in the year can significantly influence how your business grows, evolves, and mitigates risks. By taking the time to review your business operations and consult with your attorney, you can set the foundation for a successful year. 

As a general legal counsel and advisor to closely-held businesses, I work with business owners to address their legal and operational needs proactively. This ensures they remain compliant with changing laws and strategically prepared for both opportunities and challenges. Here’s a comprehensive checklist to help you start the year strong: 

Business Renewal

File your LLC/business entity renewal with the MN Secretary of State at no cost before December 31^st of each year, otherwise your business entity may be administratively terminated.  If you plan to enter into new contracts or sell your business, you will want to ensure your business registration is current.

Business Records

Review and update your internal corporate governance documents like operating or shareholder agreements to reflect any changes to the business structure, ownership, valuation and any major decisions made during the fiscal year such as changing your corporate decision-making process, admitting or exiting a business partner or acquiring or selling business assets. This will ensure you are keeping up with ‘corporate formalities’ required to maintain your business’ limited liability status. 

Contracts/Leases

Track important deadlines of your business contracts and leases with respect to termination, notice and renewal issues providing you options if you decide to end or negotiate existing contractual relationships. 

Employer-Employee Relationships/Policies

Revisit and review your employee handbook, company’s policies/procedures and employment agreements ensuring compliance with new and current state and federal laws.  Some laws may have changed or are unenforceable like non-competes, and revisions of existing policies and contracts is highly recommended to avoid potential liability, penalties and litigation.    

Buy/Sell Agreements

We cannot predict the future but can plan for unforeseen circumstances or unfortunate events.  Having a buy/sell agreement is a key business succession planning tool that deals with transitions in the event of an owner’s disability, death, divorce, departure or bankruptcy.   It also provides an ‘exit strategy’ for business owners thinking of retirement.  Furthermore, business valuations are often a highly litigated issue in shareholder disputes, and a well drafted and updated buy/sell agreement can minimize disputes and unwanted legal fees saving time. 

Taxes

Prioritize important tax deadlines based on your company’s tax classifications and operations.  For example, if your company is taxed as corporation or partnership, there are various deadlines to file such returns, or if you hire employees or independent contractors, W2s or 1099s need to be sent to them by certain dates as well as payroll reports. 

Estate Planning

Often overlooked, an estate plan may ensure a successful transfer of a business owner’s most prized asset to their loved ones with ease and certainty, and navigate decision-making, taxation or business continuity issues posed. 

Conclusion 

As a business owner, planning for the future is one of the best ways to protect your investment and achieve your goals. By addressing the items on this checklist, you not only ensure compliance with evolving laws but also position your business for sustainable growth and resilience. 

At Omnus Law, we specialize in providing tailored legal advice to closely-held businesses, including comprehensive General Counsel legal services. Whether you need assistance with operational reviews, compliance with new regulations, or strategic business planning, our team is here to support you at every stage. Schedule a consultation today to review your operations and ensure your business is prepared for the year ahead. Together, we can safeguard your success and set the stage for a thriving future.