10-Step Springtime Legal Audit Checklist
Welcome to the glorious, first Day of Spring 2025!
Just as you would take your automobile in for a tune-up, good practice requires that an audit the legal health of your business should be conducted regularly to ensure your business remains compliant with applicable laws, minimizes risk, and operates smoothly. The following 10-step checklist is a useful guide as a preliminary self-audit. Of course, a proper audit should be conducted by your trusted legal professional.
- Business Structure Review – You need to ensure that your current business structure (LLC, corporation, sole proprietorship, partnership, etc.) continues to optimally serve your business purpose and remains most tax-efficient.
- Licenses and Permits – Check any expiration dates of all your licenses and permits. Are you up to date with any required registrations? Are there new regulations in your industry that require additional certifications?
- Employment Agreement and Policies – You should review your employment contracts, nondisclosure agreements and workplace policies. It is critical that these remain up to date and in consonance with current labor laws.
- Intellectual Property – Conduct an inventory of all your intellectual assets, including trademarks, copyrights, and patents. Are they duly registered and are all renewals up to date?
- Contracts Review – Comprehensively review your vendor, client and partnership agreements.Look for any that may be about to expire or may need renegotiation.
- Insurance Policies – Ensure your insurance coverages, like liability, workman’s compensation, or property, are current and sufficient for your needs.
- Financial Health Check – Review your financial statements and tax returns. Are there loan/credit renewals or looming liabilities or issues that could have legal implications?
- Data Protection and Privacy – Ensure your business complies with data protection laws. If you store customer data, how secure are your protection measures?
- Real Estate and Leases – If you rent commercial space or other real estate, review your leases for compliance and for any approaching renewal dates or terms that need renegotiation.
- Succession Planning – If you haven’t already, consider what would happen to your business in the event of your retirement, incapacity or death. Having a legal plan in place is critical.
Why An Annual Legal Audit Is Important – A legal audit is more than just a procedural exercise – it is a proactive measure to safeguard your business and its future. Regular audits help identify potential vulnerabilities, ensure compliance with ever-changing laws, and allows peace of mind, knowing that you have minimized risks and optimized your opportunities.
Call to Action – While the above checklist is a good starting point, a comprehensive legal audit demands detailed scrutiny that only seasoned lawyers can provide. Head into the new season on a more solid footing. Contact seasoned lawyers at Thorgood Law Firm and let our experienced team guide you through a thorough legal audit, tailored to your specific needs. Your peace of mind is invaluable.
