Spring Cleaning for Your Business
by John W. Schuster of Caliber Law, s.c. 920.292.0000
I frequently get asked by my clients if their business and legal documents are up-to-date. Below is a quick list of the most important items that every business owner should go through each spring to make sure the prior year was closed out successfully, and ensure they have a legally-compliant start to the new year:
Consent Resolutions – State law requires that all major decisions made by your corporation over the course of the year get properly documented. Many times these can be approved through special resolutions, but you will want to make sure that all major decisions have been properly documented, that your corporation has held an annual meeting, and that you have the proper resolutions approving all major corporate decisions, transactions, and meetings for the past and current years.
Your Buy-Sell Agreement – Spring is the perfect time to make sure all requirements of your buy-sell agreements have been met, especially if you have a buy-sell which provides for a yearly agreement upon the value of the business. There is nothing worse than forgetting to do this each year, and then finding out five years down the line that the purchase price to buy you out is more than five years old.
Contracts – Have you had someone review your standard contract and purchase agreements lately? Do you have adequate enforcement and default terms in your agreements? Having the right default terms can really affect your ability to collect – or not collect – if a customer decides not to pay you.
Spring is a perfect time to do a little spring cleaning and make sure your legal documents, processes, and decisions are up-to-date before you officially launch into the new year.
Atty. John W. Schuster, J.D., MBA is the owner and an attorney at Caliber Law, S.C., a law firm located in Oshkosh which specializes in business law and real estate. Schuster helps business owners start, protect, buy, sell and grow their businesses.