The start of a new year brings fresh goals, renewed motivation, and a long list of things business owners want to do better this time around. More growth. Better systems. Fewer late nights. And ideally, fewer legal surprises with the right law firm support in place.
January is the perfect time to step back and ask an important question: is your business legally set up, with the right law firm support, to support the goals you have for the year ahead?
Too often, legal tasks are left until something goes wrong. A dispute. A cash flow issue. A falling out between business partners. By then, fixing the problem with a law firm involved can be stressful, expensive, and time consuming.
This guide walks through the key legal checks every small business should review at the start of each year with a law firm. Think of it as your annual legal health check, designed to protect what you are building and give you peace of mind as you move into the year ahead.
Why January Is the Right Time to Review Your Business Legals with a Law Firm
January offers a rare pause. The year has not yet gathered momentum, and there is space to plan with your law firm rather than react.
From a legal perspective, reviewing your business with a law firm at the beginning of the year allows you to:
• Identify risks before they become problems
• Ensure your documents reflect how your business actually operates
• Align your legal structure with your growth plans
• Avoid rushed decisions later in the year
If your business has grown, pivoted, or changed in any way over the past 12 months, your legal documents may no longer be fit for purpose.
1. Review Your Business Structure
Your business structure affects tax, liability, succession planning, and personal asset protection. It is not a set and forget decision.
Ask yourself:
• Are you still operating as a sole trader when your risk has increased?
• Has your income grown to a point where a company or trust structure makes more sense?
• Have you brought on a business partner without formalising the arrangement?
A business lawyer can review whether your current structure still aligns with your goals and risk profile. For many small businesses, growth is the trigger for needing stronger legal protection.
2. Check Your Business Name, Domain and Intellectual Property
Your business name, logo, branding, content, and systems are valuable assets. Many business owners assume they are automatically protected, but this is not always the case.
Key questions to consider:
• Is your business name registered with ASIC?
• Do you own your domain name personally or through your business entity?
• Have you considered trademark protection for your brand?
• Who owns your website content, marketing materials, or designs?
If you are investing time and money into building a brand, it is worth ensuring it is legally protected. Trademarks, contracts, and proper ownership arrangements all play a role here.
3. Update Your Contracts and Client Agreements
Contracts are one of the most overlooked areas of small business legals. Many businesses rely on templates downloaded online or agreements drafted years ago that no longer reflect reality.
January is a great time to review:
• Client or customer terms and conditions
• Service agreements
• Supplier agreements
• Contractor agreements
Your contracts should clearly set out payment terms, scope of work, termination rights, and dispute resolution processes. If your business has evolved, your contracts should evolve too.
Clear contracts do not just protect you legally. They also set expectations, reduce misunderstandings, and support better client relationships.
4. Review Your Employment and Contractor Arrangements
If you have staff or contractors, this step is essential.
Ask yourself:
• Are your team members properly classified as employees or contractors?
• Do you have written employment or contractor agreements in place?
• Are your policies and procedures up to date?
• Are you complying with Fair Work obligations?
Misclassification of workers is a common issue and can lead to serious penalties. A legal review at the start of the year can help ensure your arrangements are compliant and fair.
5. Check Your Privacy and Data Protection Obligations
If your business collects personal information such as client details, email addresses, or payment information, privacy laws apply to you.
January is the right time to review:
• Your privacy policy
• How client data is stored and accessed
• Who has access to sensitive information
• Whether your systems are secure
As your business grows, so does the responsibility to handle personal information appropriately. A privacy breach can damage trust and result in legal consequences.
6. Confirm Ownership and Succession Planning
Many business owners focus heavily on growth but forget to plan for unexpected events.
Important questions to consider:
• What happens to the business if you become ill or incapacitated?
• Who can make decisions on your behalf if needed?
• What happens to the business if you pass away?
This is where personal estate planning and business succession planning intersect. Wills, powers of attorney, and shareholder or partnership agreements should all work together.
A business lawyer can help ensure your personal and business affairs are aligned, protecting both your family and your business.
7. Review Insurance and Risk Management
While insurance is not a legal document, it plays an important role in risk management.
Consider whether you have:
• Professional indemnity insurance
• Public liability insurance
• Cyber insurance
• Directors and officers insurance, where relevant
Legal advice can help you understand where insurance fits into your broader risk strategy and where contracts or structures may also be needed to reduce exposure.
8. Set Legal Priorities for the Year Ahead
Once you have reviewed your current position, the final step is planning.
This might include:
• Updating contracts or policies
• Registering trademarks
• Restructuring the business
• Putting succession plans in place
• Seeking ongoing legal support rather than one off advice
Treating legal tasks as part of your annual business planning helps you stay proactive rather than reactive.
Frequently Asked Questions
Do small businesses really need a lawyer every year?
Not necessarily, but an annual legal review can save significant time and money in the long run. Even a brief check in with a business lawyer can highlight risks you may not have considered.
Can I just use online templates for contracts?
Online templates can be a starting point, but they are not tailored to your specific business, industry, or risk profile. A poorly drafted contract can cause more problems than it solves.
When should I consider changing my business structure?
Common triggers include increased income, higher risk, taking on partners, employing staff, or planning for succession. A business lawyer or accountant can help assess the right timing.
Is legal advice tax deductible for businesses?
In many cases, legal advice related to running your business is tax deductible. You should confirm this with your accountant based on your circumstances.
How long does a legal review usually take?
This depends on the complexity of your business. For many small businesses, an initial review can be completed relatively quickly, with follow up work scheduled over time.
Start the Year with Confidence
A new year is about momentum, not putting out fires. Taking the time in January to review your business legals can set the tone for a smoother, more confident year ahead.
If you are unsure where to start or would like tailored advice for your business, speaking with a business lawyer early can make all the difference.
Disclaimer:
This article is general information only and does not constitute legal advice. Every business is different, and you should seek tailored legal advice before making decisions based on this information.