Today is New Year's Eve, which falls on a Friday this year, and so this week in our Freedom Friday blog and email newsletter I want to wish all of you a Happy New Year. Its time to say goodbye to 2021 and hello to 2022. Many changes and transitions are in store in the coming year, but in today's Freedom Friday blog and email newsletter, I want to share my Top Ten Tips for your small business in the new year.
1. Verify Information for Contractors
If your small business has independent contractors, you will need to send them 1099 forms for tax purposes. Now is the time to make sure you have their W-9, their correct mailing address, social security or federal tax ID number, and other financial information so that you or your tax professional can prepare the 1099 form.
2. Get Ready for Taxes
Every small business owner will need to file taxes in 2022. Now is the time to review your books, gather your financial documents, and coordinate with your CPA or tax professional whatever you will need to file taxes in 2022.
3. Hold Your Annual Meeting
If you haven't held your Annual Meeting yet, and this is required by your bylaws or operating agreement, you need to schedule and hold your Annual Meeting with your members, shareholders, or owners as soon as possible.
4. Prepare Your Budget
Now is the time to prepare your budget for 2022 if you haven't done so already. What are your revenue projections for 2022? What expenses will you have in 2022?
5. Set Your 2022 Goals
Also, now is the time to set your 2022 goals. What do you hope to have your small business achieve in 2022? Do you have a plan in place to achieve your goals?
6. Check Your Status with the Oklahoma Secretary of State
Every year business entities filed with the Oklahoma Secretary of State go inactive because they don't renew their annual certificate, which is required to stay in good standing. Now is the time to check and make sure you're still in good standing, and if you aren't in good standing, pay the minimal fee and get reinstated.
7. Amend Your Articles of Organization or Certificate of Incorporation
While you're checking your status with the Oklahoma Secretary of State, its also a good idea to consider if you need to amend your Articles of Organization (for LLCs), or your Certificate of Incorporation (for corporations and nonprofits). If you've changed the name of your small business, your primary business location has moved, or you've changed your registered service agent, now is the time to update this information.
8. Consider S Corporation Status
Now is the time to consider how your small business will be treated for tax purposes in 2022. If your small business is not already taxes as an S corporation, you will have two and half months after the new year to make that election with the IRS. This is a good time to discuss with your CPA or tax professional whether electing S corporation status would make sense for your small business.
9. Review Contracts
If you have any third-party contracts, now is the time for you to review those contracts to see if any of them have expired or will expire soon. You might need to consider if you need to renegotiate terms of the contract, and you should also check if the contract will automatically renew. If you wish to cancel the contract, you may need to provide advance written notice to the other party.
10. Schedule Meetings
If you have a business coach or mentor for your small business, now is the time to schedule a meeting with them to make sure you start 2022 on the right foot. At the same time, you should schedule a meeting with your CPA or tax professional to make sure your tax documents are in order for the new year. Lastly, this is a great time to schedule a meeting with your attorney for help with reviewing your contracts, amending your operating agreement, or just discussing any challenges you're having with your small business.
On behalf of Liberty Legal Solutions, LLC, have a Happy New Year 2022!
If you are interested in starting a small business in 2022, or you have any business law or business litigation need anywhere in the State of Oklahoma, please contact me at [email protected] to schedule a FREE strategy session.
For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/