With the end of 2016 in sight, now is a good time to run through your year-end business planning checklist. Here are a few things to consider before you head into the New Year:
- Do you need to hold a corporation/LLC annual meeting? While an LLC may not be required to hold an annual meeting, it is often advantageous for an LLC to have one, as the practice can prove beneficial in certain tax and legal scenarios.
- Update your meeting minutes. Again, while an LLC has no legal requirement for meeting minutes, it is a best practice to keep up-to-date minutes to maintain organized operations and a record of decisions. Corporations do have to have annual meetings and the end of year is a good time to get them done.
- Review your business’ operating agreement or shareholder agreement. Since the agreement sets forth important governance matters in your organization, these documents should be reviewed periodically. Does it still effectively govern ownership interests and their financial and managerial rights and responsibilities? Now is the time for a thorough review.
- Review or consider a buy/sell agreement. Why review this? The value of your business may have changed. Also, have you considered all the triggers that may cause a shareholder to leave (personal and professional)? The agreement needs to be funded, so you need to make sure funding matches with the terms of the buy-sell.
- Consult with your CPA on regarding taxes including New Hampshire Business Enterprise Tax (BET) or New Hampshire Business Profits Tax (BPT).
- Review your employee handbook and any employee agreements. This is a good time to make sure your organization is current and compliant with employment and labor laws as well as setting employee expectations and ensuring consistent treatment.
To learn more about Shaheen & Gordon, P.A.’s corporate and business services and litigation representation or to seek assistance with any of these matters, please contact Sean O’Connell or Karyn Forbes.