Annual Legal Audits

Annual Legal Audits

One way for small businesses to save money, minimize risk, and anticipate potential problems is to have an attorney review the legal aspects of the business at least once a year. Typically, the best time for this annual legal audit is a month or so before the end of the business’s taxable year.

Mike reviews all aspects of his clients’ businesses and provides his clients with a thorough and detailed assessment of the potential legal risks the business faces in its current form and recommends solutions to protect the business from such risks. The following is a partial list of the issues Mike reviews in performing an annual legal audit for his clients:

  • basic documents related to the business itself such as articles of incorporation, bylaws, stock transfer records, operating agreements, and partnership agreements;

  • employment agreements;

  • all leases, licensing agreements, and other contracts with third parties;

  • insurance policies;

  • all standardized contract forms used by the business;

  • internal policy and procedural manuals;

  • regulatory compliance;

  • structural changes in the business organization;

  • filing of annual reports with the Secretary of State and other regulatory bodies;

  • pending and potential litigation involving the business; and

  • recent legal developments affecting the business.