What to Include in an Annual Legal Checkup (and Why It Matters)
Running a business means juggling a lot — and legal issues often take a backseat until something goes wrong. But just like you schedule checkups for your health or finances, your business deserves the same attention.
An annual legal checkup can help you:
- Catch small issues before they become big problems
- Make sure your documents and practices still match your goals
- Protect yourself from unnecessary risk
- Feel confident heading into the next phase of growth
Here’s what that checkup should cover — and why it’s worth your time.
What to Review in an Annual Legal Checkup
1. Business Structure
- Is your current structure (LLC, S Corp, nonprofit, etc.) still the best fit?
- Have there been ownership changes, new partners, or shifts in how you operate?
2. Operating Agreement or Bylaws
- Are roles, decision-making, and ownership reflected accurately?
- Would the agreement hold up if someone left or a dispute came up?
3. Contracts & Templates
- Are your core contracts up to date and tailored to your current services?
- Do your templates cover the right legal protections (payment terms, IP, dispute resolution)?
- Are there handshake deals that should be formalized?
4. Employment & HR Basics
- Are your workers properly classified (employee vs. contractor)?
- Do you have updated offer letters, agreements, or an employee handbook?
- Are you complying with current labor laws in your state?
5. Licenses, Permits & Filings
- Are all business licenses, permits, and registrations current?
- Have you filed any annual reports or corporate updates required in your state?
6. Intellectual Property & Branding
- Are your name, logo, website, and content protected?
- Should you consider registering a trademark?
7. Insurance & Risk Management
- Do you have the right insurance coverage in place for your size and services?
- Are you exposed to unnecessary legal or financial risks?
8. Website, Privacy & Online Activity
- Are your website terms of service and privacy policy up to date?
- Do you collect customer or donor data in a legally compliant way?
Real-World Example: The Growing Business With Hidden Gaps
A successful boutique consulting firm reached out for help with a potential investor. They’d grown quickly over the past two years — hired a few contractors, launched new services, and built up a strong client base.
But when we started reviewing the legal side, a few things surfaced:
- Their operating agreement hadn’t been touched since day one. It didn’t reflect how profits were actually being shared or how a new investor could be brought in.
- Their client contract didn’t match their current offerings — and was missing important terms like late fees, dispute resolution, and IP ownership.
- Their contractor agreements were outdated, and one worker should likely have been classified as an employee.
- They’d rebranded with a new logo and name — but hadn’t taken steps to protect their intellectual property.
They weren’t in crisis — but these issues could’ve created major problems if they’d moved forward without fixing them. After a full legal checkup, we brought everything up to speed and built a plan for growth with a solid legal foundation.
Why It Matters
Legal checkups aren’t about chasing paperwork — they’re about protecting what you’re building.
As your business grows, so does the risk of something slipping through the cracks.
A little legal maintenance each year can help you:
- Avoid costly disputes or fines
- Strengthen your position in deals and negotiations
- Plan with more clarity and confidence
Want Help With a Legal Checkup?
We offer flexible support options for small businesses and nonprofits. Whether you need a simple review or a deeper dive, we’d be happy to help you stay legally healthy.
Ready to get started? Let’s talk today.