Resolutions for Small Business Owners: What’s “In” and What’s “Out”

As 2025 begins, the team at Hiatt Law is here to highlight a few trends and priorities that small business owners should keep in mind while crafting their New Year’s resolutions. Whether it’s optimizing your business structure, securing your business legacy, or protecting your intellectual property, here’s what we think should be on your 2025 to-do list:

What’s “In”?

1. Efficient Business Structures

As tax laws evolve, it’s important to assess whether your current business structure is still advantageous. A sole proprietor would likely benefit from forming an LLC to limit personal liability and potentially reduce tax burdens. Regularly reviewing and optimizing your business structure can lead to significant operational efficiencies and cost savings.

2. Workplace Agreements and Policies

Formalizing workplace agreements is essential for setting clear expectations and protecting your business. For example, drafting comprehensive employment contracts and independent contractor agreements can prevent misunderstandings and legal disputes. Implementing internal policies, such as employee handbooks, ensures compliance with labor laws and fosters a positive work environment.

3. Comprehensive Intellectual Property Strategies

In today’s digital age, safeguarding your intellectual property (IP) is crucial. For example, if you’ve developed a unique product or service, securing a trademark can prevent competitors from capitalizing on your brand. Additionally, implementing trade secret policies ensures that proprietary information, such as recipes or algorithms, remains confidential. Copyright strategies are also essential for protecting original content, like marketing materials or software code, from unauthorized use.

4. Customized Estate Plans for Entrepreneurs

Estate planning isn’t just about personal assets; it should encompass your business interests as well. An entrepreneur with substantial business holdings might establish a trust to manage and distribute assets according to their wishes, ensuring both their family and business are protected. Customized estate plans provide peace of mind and financial security for your loved ones.

4. Succession Planning for Small Business Owners

Planning for the future of your business is vital. Consider a family-owned restaurant where the owner plans to retire. Without a clear succession plan, the business could face operational disruptions. Establishing a tailored succession plan, including buy-sell agreements and trusts, ensures a smooth transition and preserves your business legacy.

What’s “Out”?

1. Reactive Business Planning

Waiting until challenges arise is no longer viable. For instance, addressing legal disputes or compliance issues only after they’ve occurred can be costly and damaging to your reputation. Proactive strategies, like formalizing partnerships and managing liabilities in advance, are essential in today’s fast-paced market.

2. Informal Business Practices

Relying on handshake deals and verbal agreements is a liability. Without written contracts, enforcing agreements becomes challenging, and misunderstandings are more likely. Formalizing arrangements with clear, written contracts ensures clarity, protects your interests, and builds trust with partners and clients.

3. Overlooking Intellectual Property

Ignoring IP protection can leave your business vulnerable. Imagine developing a unique logo or brand name, only to have it copied by a competitor because it wasn’t trademarked. In 2025, securing your IP assets is a non-negotiable step in maintaining your competitive edge.

4. Single-Faceted Estate Plans

Standard estate plans often fall short for business owners. If your estate plan doesn’t account for your business interests, it could lead to complications for your heirs. Coordinating personal and business goals in one cohesive strategy ensures a seamless transition and minimizes potential conflicts.

5. Neglecting Tax Efficiency

Operating under an outdated business structure could mean overpaying taxes. For example, failing to take advantage of available tax deductions or credits can result in unnecessary expenses. Regular reviews of your entity type and tax strategy can lead to significant savings and improved financial health.

Secure Your Success in 2025

At Hiatt Law LLC, we specialize in supporting small business owners with tailored solutions to protect your business, your intellectual property, and your legacy. Let us help you make 2025 a year of growth, protection, and peace of mind. If you’re unsure about how you can start making progress on your business resolutions, contact us today to speak with a member of our legal team about your priorities for the new year.