2025 Legal Prep: 5 Things to Do Before the Ball Drops

As the year comes to a close, many of us reflect on the past twelve months and plan for what’s ahead. For business owners, that reflection should include a legal checkup. A legally sound business is the best gift you can give yourself—and your future. Here are eleven critical steps to review before the ball drops.

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1. Review and Update Your Agreements

Contracts should evolve alongside your business. Make sure client agreements, vendor contracts, and independent contractor agreements reflect your current services, pricing, and policies. Outdated agreements can expose you to unnecessary disputes.

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2. Schedule Annual Meetings

If you operate as a corporation or LLC, state law may require annual meetings of shareholders or members. Even if not required, these meetings document important decisions and help preserve liability protection.

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3. Check Legal Entity and Trademark Status

Confirm that your business entity is in good standing with the state and that your annual filings are current. If you’ve invested in branding, verify the status of your trademarks to ensure continued protection.

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4. Review Any Outstanding Contracts

Look for contracts that are still pending completion or renewal. Addressing them before year-end can prevent disputes and give you a clear slate for the new year.

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5. Review Insurance Policies

Insurance needs can change as your business grows. Review your liability, property, cyber, or professional insurance policies and update coverage to reflect new risks or assets acquired during the year.

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6. Ensure Employment Law Compliance

If you have employees, confirm compliance with current wage, leave, and nondiscrimination laws. Update your employee handbook or workplace policies as needed to reflect new or revised regulations.

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7. Assess Non-Compete and Confidentiality Agreements

Evaluate whether your existing non-compete and confidentiality agreements still serve their purpose. Outdated agreements may be unenforceable, leaving sensitive information unprotected.

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8. Review Lease Agreements

If your business operates from leased space, check for upcoming renewals. Understanding renewal terms in advance gives you time to negotiate favorable conditions or explore other options.

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9. Resolve Unpaid Invoices

Clear up any outstanding receivables and payables. Collecting overdue invoices strengthens your year-end cash flow, while paying what you owe helps preserve strong vendor and client relationships.

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10. Evaluate Cybersecurity Protections

With increasing reliance on digital operations, cybersecurity has become a critical part of business protection. Assess your current safeguards, such as data encryption, backups, and employee training, to reduce risk of breaches.

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11. Review Succession and Estate Plans

Finally, revisit your succession plan and personal estate planning documents. Ensure that ownership transfers, powers of attorney, and trusts align with your current goals and family needs.

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Closing Thought:

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By taking the time to review these areas now, you’ll step into 2026 with confidence, knowing your business and legacy are protected. Smart planning today prevents costly surprises tomorrow.

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