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As the days are getting shorter and the calendar is quickly ticking off the final days of 2010, we all start thinking about holiday shopping and travel plans. But if you’re a business owner, no matter the size and scale of your business, it’s also that time to make sure you’ve got everything squared away for the new year.
Here’s a snapshot of some of the things you should be thinking about while it’s still 2010. Be sure to let us know which tips helped you the most, or add to the conversation by providing your own business resolutions and advice in the comments below.
1. If You Have an Inactive Business — Close It Before 2012
Maybe you formed an LLC for a graphic design business a few years ago, or you started an online venture with a few friends, but in the past year you’ve focused on your full-time day job. If you haven’t actively promoted your business, or it has no revenue, or no customers, essentially, you’ve closed your business.
However, you still need to file a formal termination of that LLC or corporation, otherwise you can still be charged the corresponding fees. You’ll still be expected to file an annual report (where applicable). You’ll still be required to submit tax returns to the IRS and state.
You’ll need to file Articles of Dissolution or a Certificate of Termination document with the secretary of state in the state that your corporation or LLC was formed (and in most cases, you’ll need to settle any owed taxes before you can do this). Along these lines, you should also cancel any kind of permit or licenses you hold with the state or county. And if you’ve been using a fictitious business name, you’ll need to file an abandonment form. Again, make sure to take care of these matters while it’s still 2011. There’s simply no reason to pay an extra cent in fees toward a business you know you’re retiring. Put that money toward your next venture instead.
2. If You Have a New Business — Think About Incorporating Before 2012
If you’ve started a new business in 2011 and still haven’t incorporated or formed an LLC, you might want to do so before 2012. Of course, bear in mind that your corporation’s “start date” is not retroactive. Any tax benefits you might receive apply from the date you incorporated. For example, if your corporation forms on December 11, you’ll still need to fill out your taxes as a “sole proprietor” for all the previous months in 2011.
For this reason, incorporating or forming your LLC is the one legal issue that might be better deferred until 2012. But be aware that January is the absolute busiest time of the year at your secretary of state’s office, so by waiting until January, you will be at the mercy of a long backlog.
However, you’ve got a great option in selecting a “delayed filing” with a document-filing company. This means that you can get all of your paperwork submitted now and it will be held and filed on the first business day of 2012 (when you’ll be at the front of the line).
3. If You Have a Corporation — Make Sure You’ve Filed Your Annual Report
If you’ve gone through the work to incorporate your business, make sure you keep it in good standing. Most states require some form of an annual report filing (some every year, some every two years). If your state requires you to file this report, there is a specific due date for filing each year. In some cases, it’s on the anniversary of your business’ incorporation date. In other cases, it’s when your annual tax statements are due. And in some cases, it’s at the end of the calendar year.
Be sure to know your specific filing deadline (check with your secretary of state’s office). Missing this deadline can result in penalties and late fees. In the worst case scenario, your company can even be subject to suspension or dissolution.
4. If You’ve Changed Your Corporation — File Your “Articles of Amendment”
Did you change your address? Drop the “.com” from your official company name (or any other name change)? Authorize more shares? Did a board member or director leave the business? Any time you make a change to your corporation or LLC, you can basically count on having to file an official notification (referred to as an “Amendment”) with your state. In many states, these are called Articles of Amendment.
If you have made any of those changes, make sure you file that Amendment before the new year swings by.
5. Tie Up Legal Loose Ends
The end of the year presents a perfect opportunity for you to tie up any loose ends that you’ve put off throughout the year. For example: Did you file a DBA (Doing Business As) for your business name? Do you need to file for a trademark? Did you get a tax ID number (or, employer ID number)? Are all your necessary licenses and permits in order?
December may be a busy month, but be sure to set aside some time to address your administrative obligations. In some cases, taking care of an issue in 2011 can help save you money in fees and penalties moving forward. And in other cases, you can cross a few more things off your list to start fresh in 2012.
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Professional networking events present opportunities to interact with others on a personal level and to develop profitable business relationships. These occasions are significant for anyone who wants to grow a business or promote a career. The ability to connect with people is essential to success in any business.
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