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The way your company finishes one year can lay the foundation for early success next year, says a lawyer in the latest edition of D.R. Legal News.

In that spirit, Michael G. Horstman, with Sorling Northrup Attorneys in Springfield reminds IAR’s managing brokers of five important tasks to complete by the end of 2014:

• Update employment applications, employee handbooks and employment law posters;
• Review insurance policies for your company and confirm that sponsored licensees are maintaining the proper type and appropriate amount of insurance;
• Check your company’s transaction and disclosure forms to prevent use of outdated information and inconsistent terminology;
• Study your anticipated income and tax liabilities to see if adjustments should be made to avoid penalties and save money; and
• Check your document retention and destruction policy – or create one if none exists – and then make sure you dispose of documents beyond the timeframes set in the policy.

When establishing a document policy, Horstman explains contracts are subject to legal action for up to 10 years, the Internal Revenue Service can audit tax returns for up to seven years and the Illinois Department of Financial and Professional Regulation can take action for violations up to five years old.

For more important explanations and details regarding his suggestions, check out his article in the November edition of D.R. Legal News.