Webinar Recap: Year-End Business and Real Estate To-Dos
Here’s our checklist of things to do as we approach year-end.
Entity Maintenance
Respect the corporate formalities. Glossing over these tasks can create problems with the IRS and during litigation.
Pay your annual renewal with the secretary of state. After 90 days of nonpayment, the Secretary of State's office may administratively dissolve your entity. At which point, your entity is no longer registered with the State, which is a requirement of doing business.
Have your annual meeting. Corporations are required to have annual meetings. LLCs are not unless your operating agreement says you do.
Update your minutes and put them all in one place in case a lender or anyone else asks for them. Document any material moves, including approval of those moves by members. This includes adding or losing members.
Make sure personal loans to the business are properly documented and reflected in your books.
Talk to your banker and your attorney if your PPP loan is still on the books and are selling all or part of your business. It can transfer to new owners in certain circumstances.
Evictions
Seattle Mayor Jenny Durkan issued an executive order that extends moratoriums on evictions of residential, nonprofit and small-business (<50 employees) tenants through March 31, 2021. Landlords and property owners cannot issue notices of termination or initiate eviction actions unless there are significant and immediate threats to health and safety. Tenants are still legally required to pay rent, and the city requires landlords to offer payment plans. Both the city and county have prohibited property owners from late fees, and interest and other charges. Governor Inslee is looking for a similar extension of the statewide ban, but as of now, it is on track to expire on December 31.
Put repayment plans in place now with at-risk tenants so you can act swiftly if you need to pursue proceedings.
Schedule a call with your attorney to go over the latest orders and if/how they impact you.
Commercial Leases
When was the last time you read your lease? Do it now so you can:
See if there are any outs for early termination.
Put upcoming deadlines like renewal options, option to purchase and scheduled rent increases.
Get an insurance advisor's opinion on whether your coverages and denominations are correct.
Insurance
Check-in with your insurance advisor at the end of the year to:
Determine whether you have moved into a new asset class or increased total value of portfolio, which could shift costs substantially.
Make sure you’re well-covered with the right coverages.
Review your umbrella policy to ensure it provides sufficient protection.
Estate & Succession Planning
A lot has happened this year that could impact your estate or succession planning. And since tax rates are undoubtedly going to be higher next year, if you’re going to do anything with your estate or business ownership, get started now.
Determine if your assets have grown to a point where there are new tax considerations.
Note additions and losses to the family or to business ownership.
Update (or start) a will.
Create an information packet for the executor that includes bank and investment accounts, an original will, deeds, partnership documents, insurance policies, or other important information.
Make strategic decisions about how and when to give your family members or employees shares, etc.
Make sure your official documents are correct so you get the benefit or your beneficiaries do.
You can get more details on these topics by watching the full session below. As always, reach out if you have any questions
Meantime, thanks for joining us on these webinars, which we’ll continue into 2021. Won’t it feel great to have 2020 behind us!
