As the year ends, every Michigan business should review its legal, financial, and compliance obligations to prevent costly mistakes in the new year. A thorough year-end legal checklist helps ensure that corporate records and contracts are up to date, employee policies align with state and federal law, and tax and licensing requirements are met. Taking these steps now can help businesses in Macomb and Wayne County start the next fiscal year with confidence and stability.
Review and Update Business Formation Documents
The first step in any year-end review is to confirm your business entity remains in good standing. For corporations and LLCs registered in Michigan, that means verifying the following:
Annual Statements: Confirm your yearly statement has been filed with the Michigan Department of Licensing and Regulatory Affairs (LARA). Failing to file can lead to administrative dissolution.
Operating Agreements or Bylaws: Revisit these documents to ensure they reflect current ownership, voting rights, and management structures.
Registered Agent Information: Verify that your registered agent and address are up to date — this is essential for receiving official notices.
Business Licenses and Permits: Check renewal dates for county or municipal licenses, especially if your business operates in multiple jurisdictions across Macomb and Wayne County.
Regularly reviewing your foundational documents ensures your business remains compliant and protected against future disputes.
Audit Contracts and Vendor Agreements
Contracts are living documents that often need adjustment as operations grow or laws change. A year-end audit can reveal opportunities to renegotiate, renew, or terminate outdated agreements.
Key contracts to review include:
Supplier and Vendor Agreements: Ensure terms still align with current pricing, delivery expectations, and service levels.
Client Contracts: Check for automatic renewal clauses or obligations extending into the following year.
Leases and Real Estate Agreements: Verify renewal windows and confirm the lease terms comply with Michigan property law.
Non-Disclosure and Non-Compete Agreements: Ensure they reflect enforceable language consistent with current Michigan law, which continues to evolve.
A contract review is especially critical for businesses that have expanded service areas or changed partners during the year.
Evaluate Employment Practices and Policies
Employment law compliance is a significant focus for Michigan regulators, especially for businesses operating in populated areas such as Detroit, Warren, and Livonia. Before closing the books on the year, review:
Employee Handbooks: Make sure they include current Michigan labor laws, including updates on paid leave, wage transparency, and remote-work policies.
Wage and Hour Compliance: Confirm employees are correctly classified as exempt or non-exempt and that overtime policies follow state and federal standards.
Independent Contractor Agreements: Reassess independent contractor relationships to ensure compliance with IRS and state tests for worker classification.
Discrimination and Harassment Training: Verify that training has been completed and documented for all staff and managers.
Employers in Macomb and Wayne County can also consider conducting an HR compliance audit to address any risks before they lead to liability proactively.
Check Tax and Financial Filings
A year-end legal checklist wouldn’t be complete without confirming tax and financial obligations. Michigan businesses must:
Reconcile State and Local Taxes: Ensure all sales, use, and withholding taxes have been filed and paid.
Review Payroll and 1099 Records: Confirm all reporting is accurate ahead of January deadlines.
Evaluate Business Deductions: Coordinate with your accountant to identify any year-end expenditures that may qualify for deductions.
Confirm Employer Identification Numbers (EINs): If your business has restructured, confirm that EINs and state tax accounts are updated accordingly.
For multi-location companies in Macomb and Wayne Counties, check that each local jurisdiction has received the required reports or payments.
Conduct a Legal Risk Assessment
A proactive legal risk review can prevent disputes or penalties down the line. Consider:
Pending or Potential Litigation: Resolve or document any ongoing claims.
Data Privacy Practices: Review your compliance with federal and state privacy laws, especially if you handle consumer or employee data.
Insurance Coverage: Confirm that liability, cyber, and property policies reflect your current risk profile.
Intellectual Property: Ensure trademarks, copyrights, and patents are current and renewed adequately with the U.S. Patent and Trademark Office.
Identifying these issues now allows your business to address vulnerabilities before they become legal liabilities.
Prepare for Corporate Transitions and Succession
If your business anticipates ownership changes, new partners, or potential mergers in the coming year, begin planning early. Review buy-sell agreements, ownership percentages, and succession documents to confirm they still reflect your current intentions.
In family-owned or closely held companies, aligning succession plans with estate planning goals ensures a smoother transfer of leadership and ownership — a step often overlooked until disputes arise.
Plan for 2026 Compliance Changes
Michigan’s regulatory environment can shift quickly, and many state or federal law changes take effect at the start of a new year. In 2026, business owners should pay attention to:
Minimum wage adjustments and local labor updates.
Potential tax code revisions affecting pass-through entities.
Evolving privacy and cybersecurity expectations, especially for businesses handling consumer data or operating online.
Setting a reminder to review compliance updates each January helps prevent surprises and keeps operations legally sound.
Start the New Year With a Strong Legal Foundation
Completing a year-end legal checklist ensures your business begins the following year with a clean slate — compliant, organized, and ready for growth. From corporate filings to employee policies and contracts, addressing these issues proactively can help you avoid disruptions and legal exposure.
If you operate a business in Macomb or Wayne County, MI, and need help reviewing your legal or compliance obligations, turn to Keating Law, PLC for guidance. We assist businesses across Michigan in maintaining compliance, protecting assets, and preparing for future success. Contact us today for a consultation.
FAQs About Year-End Legal Tasks for Michigan Businesses
1. What should I do if my Michigan business missed its annual filing deadline?
If you’ve missed a LARA annual filing, submit the overdue report as soon as possible. The state may administratively dissolve your entity after continued noncompliance. Once dissolved, you must file all delinquent reports and pay reinstatement fees to restore good standing and retain liability protection.
2. How often should small businesses update employee handbooks in Michigan?
Employee handbooks should be reviewed at least once a year or whenever major employment laws change. Michigan wage, leave, and discrimination laws can shift quickly. Regular updates ensure policies remain enforceable and protect your business from claims arising from outdated or inconsistent workplace standards.
3. Do remote or hybrid businesses in Michigan have different compliance needs?
Yes. Remote operations may create multi-jurisdictional compliance obligations, such as tax nexus or variations in employment law, if workers live outside Michigan. Review payroll sourcing rules, data privacy practices, and labor law coverage for each employee’s work location to ensure your policies meet all applicable state and federal requirements.