In soccer, halftime is more than a break. It is a chance to review the first half, adjust the game plan, and prepare for what comes next. Business owners can use the middle of the year in much the same way. By July, there is enough of the year behind you to see what is working, where pressure is building, and what may need attention before year-end arrives. On this week’s Tuesday Tax Take, we are using a World Cup-inspired halftime report to walk through key legal and tax areas business owners should consider reviewing before heading into the second half of the year.
Review the Scoreboard: Contracts and Agreements
Every business has contracts that keep operations moving, but many are signed and then left untouched until a problem arises. Mid-year is a good time to review whether those agreements still match the way the business actually operates. Business owners may want to review:
Customer and vendor agreements
Service contracts
Lease agreements
Independent contractor agreements
Loan documents and guarantees
Pay close attention to renewal terms, termination rights, pricing adjustments, and notice requirements. Many contracts renew automatically or require advance notice to make changes or exit. A summer review can help avoid being locked into another year of unfavorable terms. It is also a good time to ask whether the business has changed since the agreement was signed. If services, pricing, responsibilities, locations, or payment terms have evolved, the written contract may no longer reflect reality.
Check the Formation: Entity Compliance and Corporate Records
Even the best team needs the right formation. For businesses, that means making sure the company’s legal structure and internal records are in order. A mid-year compliance review may include:
Confirming annual filings with the Secretary of State are current
Reviewing operating agreements, bylaws, or shareholder agreements
Documenting required meeting minutes or written consents
Verifying ownership percentages and management authority
Confirming who has authority to sign contracts or bind the business
These records matter. Lenders, buyers, courts, and taxing authorities may all look at a company’s internal documents. Keeping records current can help support liability protection, avoid ownership disputes, and make future transactions smoother.
Strengthen the Defense: Insurance and Risk Management
A strong offense is important, but so is a strong defense. Insurance is one of the most important risk-management tools a business has, yet coverage is often overlooked until a claim happens. Business owners should consider reviewing:
General liability coverage
Professional liability or errors and omissions insurance
Cybersecurity and data breach coverage
Employment practices liability insurance
Property and business interruption coverage
Coverage that made sense when the business started may no longer be adequate. If the business has added employees, expanded locations, increased revenue, changed services, or taken on new types of clients, insurance policies may need to be updated.
Evaluate the Lineup: Employees and Independent Contractors
The people working in and around the business are a key part of the game plan. Mid-year is a good time to review employment practices, especially if the business has hired, expanded, or used seasonal help. Key areas to review include:
Employee classification and independent contractor status
Wage and hour practices
Offer letters and employment agreements
Employee handbooks and policies
Paid time off and leave policies
Intern, seasonal, or part-time worker arrangements
Misclassification and wage issues are common sources of disputes and audits. A proactive review can help identify potential issues before they become expensive problems.
Adjust the Strategy: Tax Planning Before Year-End Pressure
Tax planning works best when there is still time to act. Waiting until December often limits available options. A mid-year review allows business owners to look at the first half of the year and make adjustments before the final whistle. Mid-year tax planning may include:
Reviewing year-to-date income and expenses
Adjusting estimated tax payments if needed
Evaluating depreciation and capital expenditures
Considering retirement contributions or benefit plans
Assessing whether the current entity structure still makes sense
Prepare the Bench: Authority and Continuity Planning
Unexpected absences happen. Owners travel (maybe to a World Cup game), key employees leave, and emergencies arise. Businesses should know who can step in if an owner or key decision-maker is unavailable. Questions to consider include:
Who can sign contracts or checks?
Who can access bank accounts?
Are powers of attorney or other authority documents in place?
Who communicates with employees, vendors, lenders, or customers?
What happens if the owner becomes temporarily unavailable?
The Second Half Starts Now
A mid-year legal checkup is not about finding problems. It is about preventing them. Like a halftime report, it gives business owners a chance to review the first half, make adjustments, and enter the second half of the year with a stronger plan. Small issues often become large ones because they were ignored too long. Taking time during the summer to review contracts, compliance, insurance, employment practices, tax planning, and decision-making authority can put business owners in a better position before fall and year-end deadlines arrive. If you have not reviewed these areas recently, July may be the perfect time to pause, assess, and reset before the second half gets underway.
This article is for general informational purposes only and is not legal or tax advice. Every business situation is different, and professional guidance should be sought for specific questions or circumstances.
