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As the year draws to a close, the fourth quarter becomes a critical time for businesses to review their performance, assess financial goals, and make strategic adjustments. For Cincinnati businesses, this period offers an opportunity to evaluate legal and operational aspects to ensure the business is set up for success in the upcoming year. The final quarter is the perfect time to address key legal matters that may impact your company’s profitability, compliance, and growth trajectory.

Cincinnati businesses face unique challenges and opportunities as they navigate local economic trends and regulatory changes. From shifting workforce dynamics to region-specific regulations, it’s important for business owners to stay proactive in addressing these factors. By focusing on critical legal strategies in the fourth quarter, Cincinnati businesses can stay competitive, protect their interests, and take full advantage of opportunities that emerge as the year ends.

Review Contracts and Agreements

Evaluate Ongoing Contracts

The fourth quarter is the ideal time to assess whether current contracts are meeting your business needs. Contracts with vendors, suppliers, service providers, and clients should be reviewed to ensure that all parties are fulfilling their obligations. It’s crucial to verify that the terms of your agreements are still favorable and that performance is aligned with expectations. This evaluation helps identify any gaps or inefficiencies that may need to be addressed before entering the next fiscal year.

Renegotiate or Terminate Agreements

For contracts that are set to expire at year-end or no longer align with your business goals, consider whether renegotiation or termination is the best course of action. If a contract’s terms are no longer favorable, the fourth quarter provides an opportunity to renegotiate better terms or seek more competitive options with other vendors or service providers. Additionally, for contracts that are outdated or no longer serve a strategic purpose, businesses should explore termination options to avoid unnecessary expenses or obligations in the coming year.

Ensure Compliance with Local and Federal Laws

It’s essential to ensure that all contracts comply with the latest local and federal laws, particularly if there have been regulatory changes in Ohio or Cincinnati over the past year. A careful review will help identify any areas where your agreements may need updates to remain legally sound. This is especially important for employment agreements, which need to comply with changes in labor laws, minimum wage adjustments, or overtime rules. Ensuring your contracts meet all legal requirements reduces the risk of disputes or penalties in the future.

End-of-Year Tax Planning

Review Tax Liabilities

Before the year ends, it’s important for businesses to conduct a thorough review of their tax liabilities. This involves assessing your current tax situation, identifying potential tax obligations, and evaluating how your revenue and expenses have evolved over the course of the year. By identifying potential liabilities early, businesses can plan ahead to ensure there are no surprises when filing taxes. Additionally, reviewing your financial statements now allows you to take advantage of any deductions or credits that can reduce your overall tax burden.

Consider Tax-Advantaged Strategies

There are several tax-saving opportunities that businesses can leverage before the year ends, such as:

• Capital Investments: Consider making capital investments in equipment, technology, or other assets that qualify for tax deductions or accelerated depreciation. This can reduce taxable income while improving business operations.
• Retirement Plan Contributions: Businesses that contribute to employee retirement plans, such as 401(k)s, may be eligible for tax deductions. Increasing contributions before the year ends can provide a tax benefit while helping to retain key employees.
• Charitable Giving: Charitable contributions not only benefit your community but also provide potential tax deductions for your business. Donating to qualified nonprofits or setting up charitable funds can reduce your taxable income while aligning with your company’s values.

Prepare for Any Upcoming Tax Law Changes

It’s crucial for Cincinnati businesses to stay informed about any expected changes to local, state, or federal tax laws that could impact their filings in the upcoming year. This may include changes in corporate tax rates, payroll taxes, or new tax credits that may be introduced. Businesses should work closely with their accountants or legal advisors to understand how these changes will affect their tax obligations and take appropriate steps before year-end to ensure compliance.

For example, new tax laws may affect deductions or credits for certain industries, and being aware of these changes can help you adjust your financial strategies accordingly. Preparing ahead allows you to take full advantage of any available opportunities while avoiding penalties or non-compliance issues.

Ensure Regulatory Compliance

Update Licenses and Permits

One of the most important steps in year-end regulatory compliance is ensuring that all business licenses and permits are current. This includes renewing any expiring licenses and confirming that your business holds the necessary permits for operations. Whether you're running a restaurant, retail store, or professional services firm, operating without the proper licenses can lead to fines, penalties, or even forced closures.

In Cincinnati, various industries are subject to specific local licensing requirements, and it's essential that businesses confirm they meet all regulations before year-end. Proactively addressing license renewals now will help avoid disruptions and ensure that your business remains in good standing for the coming year.

Monitor Employment Law Changes

Employment law is another area where businesses must remain vigilant. In recent years, there have been several changes in employment regulations at both the state and federal levels, and Cincinnati businesses need to stay informed to ensure compliance.

• Minimum Wage Adjustments: Make sure you are aware of any changes to Ohio’s minimum wage laws, which may affect hourly workers and require updates to your payroll processes. Failure to comply with new wage standards can result in costly penalties.
• Overtime Rules: Review your employee classification to ensure that all eligible employees are receiving appropriate overtime pay. Misclassifying employees as exempt from overtime when they are not can lead to significant legal consequences.
• Employee Classification: As laws surrounding independent contractors versus full-time employees evolve, businesses must review how they classify workers. Misclassification can lead to wage violations and back taxes, so it’s important to update policies as needed.

Review Industry-Specific Regulations

In addition to general business regulations, many industries have sector-specific requirements that need to be addressed before the year ends. For example:

• Construction: Construction businesses in Cincinnati must adhere to building codes, safety regulations, and environmental standards. Ensuring compliance with updated regulations can prevent delays in projects and costly fines.
• Healthcare: Healthcare providers must comply with regulations surrounding patient privacy (HIPAA), billing practices, and healthcare provider licensure. A regulatory review can help ensure that all requirements are being met.
• Food and Beverage: Restaurants and food service businesses should review health and safety regulations, food handling certifications, and local inspections to ensure all standards are met heading into the new year.

Employment and Staffing Considerations

Review Employee Contracts

Employee contracts, especially those of key personnel, should be reviewed to ensure that they are up to date and reflective of your business’s current goals and strategies. Take the time to assess whether the terms of each contract align with the evolving needs of your business. This could include evaluating compensation packages, reviewing non-compete clauses, and ensuring that responsibilities and expectations are clearly defined.

For key employees, you may also want to revisit incentive structures or offer retention bonuses to ensure that your top talent remains committed to your company’s success. By proactively managing employee contracts, you can prevent misunderstandings and create a solid foundation for a productive workforce in the upcoming year.

Prepare for Year-End Bonuses and Incentives

The fourth quarter is also the time to evaluate year-end bonuses and incentive programs. Offering bonuses can boost employee morale and reward high performers, but it’s important to ensure that your bonus structures comply with labor laws and are clearly communicated to employees. Whether you offer cash bonuses, stock options, or other incentives, make sure that the terms are fair, transparent, and aligned with your company’s overall compensation philosophy.

Update Workplace Policies

Workplace policies and procedures should be regularly updated to ensure compliance with current employment laws and alignment with company goals. In the fourth quarter, businesses should review policies related to:

• Employee conduct and discipline
• Remote work or hybrid arrangements
• Anti-discrimination and harassment policies
• Health and safety protocols

Updating these policies to reflect the latest legal standards and business practices helps reduce the risk of disputes and ensures that your employees are aware of the company’s expectations. Additionally, reviewing and revising workplace policies can support a more inclusive, productive, and legally compliant work environment.

Protect Intellectual Property

Conduct an IP Audit

A comprehensive IP audit is the first step in ensuring that all of your intellectual property assets are properly filed and protected. An IP audit helps you evaluate your existing IP portfolio, including trademarks, patents, and copyrights, to ensure that filings are up to date and that your rights are fully enforced.

For trademarks, this involves reviewing registrations to ensure that they are still active and cover all the goods or services your business offers. For patents, it’s important to confirm that filings reflect your current innovations and that renewals or maintenance fees have been paid. Conducting an IP audit also helps identify any gaps in protection, such as unregistered trademarks or copyrights, that may need to be addressed before the year ends.

Review Licensing Agreements

If your business is involved in licensing intellectual property to other companies or receiving licenses for the use of IP, it’s important to review these licensing agreements on an annual basis. The fourth quarter is the perfect time to examine the terms of any current licensing agreements and ensure that they remain aligned with your business’s goals and legal requirements.

You’ll want to confirm that all parties are complying with the terms of the agreement, including royalty payments, usage rights, and renewal terms. If agreements are nearing expiration, now is the time to renegotiate terms or seek out alternative partnerships that better reflect the value of your intellectual property.

Consider New IP Filings

As you prepare for the new year, it’s a good time to consider any new intellectual property filings that may be necessary to protect your business’s latest innovations, branding, or product lines. Whether you’ve developed new technology, designed a unique product, or created new branding materials, filing for patents, trademarks, or copyrights ensures that your IP is legally protected.

If your business is planning to launch new products or services in the upcoming year, securing intellectual property rights before the launch can prevent competitors from infringing on your ideas or confusing your customers. Taking a proactive approach to IP filings helps protect your business’s competitive advantage and enhances your brand’s value.

Keller, Barrett & Higgins

As you prepare to close out the year, it’s essential to address the legal and strategic considerations that will set your business up for success in the upcoming year. The fourth quarter is the ideal time to ensure that your contracts, tax planning, compliance, and staffing strategies are all aligned with your business goals.

At Keller, Barrett & Higgins, we specialize in providing comprehensive legal guidance to Cincinnati businesses. Whether you need help reviewing contracts, ensuring regulatory compliance, or developing strategies for growth, our experienced attorneys are here to assist.

Schedule a consultation today to discuss how we can help your business navigate these critical year-end tasks and ensure a successful start to the new year.

• Phone: (513) 351-6058
• Email: info@kbhlawyers.com
• Office Address: 6900 Miami Avenue, Madeira, Ohio 45243