Strategizing for 2026
Strategizing for 2026: Cooper & Iravani LLP's Legal Business Checklist
By: Keith Cooper and Katayoon Iravani
As businesses continue to adapt to an evolving legal and regulatory landscape, staying proactive is more important than ever.
Cooper & Iravani LLP’s 2026 Annual Legal Business Checklist is designed to help companies and individuals identify key legal considerations, strengthen internal compliance practices, and prepare for the year ahead with confidence. From employment and privacy updates to corporate governance and operational risk management, this checklist highlights important areas every business should review as part of its annual planning strategy.
Here’s to continued success, strategic growth, and momentum in 2026!
Employees and Independent Contractors: Ensure that every employee and independent contractor is a signatory to an agreement that accurately describes the relationship with the Company and includes provisions granting ownership of all work product (including intellectual property) to the Company. These agreements should also restrain the worker from using or disclosing the Company’s confidential information and prevent the worker from competing (excluding CA) with the Company during, and sometimes after, the term of the relationship. In California, review all agreements to ensure they do not include unenforceable non-compete provisions or restrictions that could be construed as such. Review the Company’s Employee Handbook to ensure it conforms to current Company practices and interests. You must also ensure that the terms of the Employee Handbook are in compliance with state and federal law and are consistent with the terms of the employment or independent contractor agreement, unless otherwise stated. In addition, confirm that independent contractor classifications remain compliant under applicable law.
Minimum Wage and Compensation Compliance: Confirm that all hourly (non-exempt) employees are paid at or above the applicable minimum wage under California law, including any higher local wage ordinances. Confirm that exempt salaried employees satisfy the applicable minimum salary threshold required for exempt classification. Ensure timekeeping and payroll systems are updated accordingly.
Required Employee Notices: Confirm that all required federal, state, and local employee notices are being properly provided to current employees and new hires, including any updates to onboarding materials and the Employee Handbook.
Employee Leave Policies: Confirm that employee leave policies (including paid sick leave and any applicable federal and state leave laws) are current, properly coordinated, and consistently applied in practice.
Workplace Violence Prevention: Confirm that the Company has implemented and maintains a compliant Workplace Violence Prevention Plan, including required training, recordkeeping, and incident logs.
Employee Retirement Plan Compliance: If the Company does not sponsor a qualified retirement plan, confirm compliance with CalSavers. California employers with at least one (1) employee are generally required to either register with CalSavers or sponsor a qualified retirement plan. Confirm that any required registration, exemption reporting, employee onboarding, and payroll deduction implementation have been properly completed and remain operational. Businesses that failed to timely comply with prior registration deadlines should evaluate current status promptly, as non-compliance may result in penalties. If the Company maintains a qualified retirement plan, confirm annual notices, contributions, and plan administration obligations have been satisfied.
Arbitration Agreements: Confirm that any arbitration agreements used by the Company comply with applicable federal law, including required carve-outs for claims that cannot be subject to mandatory arbitration.
Beneficial Ownership Reporting (Federal): Determine whether the Company is subject to beneficial ownership information reporting requirements under federal law. Although enforcement and applicability are currently subject to ongoing legal developments, companies should confirm whether they qualify as a reporting company and be prepared to comply with applicable reporting obligations if required.
Annual Filings: Ensure the information on your State Annual Report is current, file updated annual reports, and pay applicable taxes in your home state and any other states in which the Company is qualified and registered to do business as a foreign entity. As a note, the requirements and filing deadlines for state annual reports vary according to the state of organization and operation. This applies equally to corporations and limited liability companies.
Permits: It is important to check the requirements of all authorizations, tariffs, licenses, approvals, and permits held by the Company from any local, state, U.S., or foreign governmental agency or authority, including any necessary renewals.
Annual Corporate Meeting Minutes (Corporations only): Prepare and store in the Company’s Corporate Book all minutes or consents of the shareholders, directors, and any committees. This obligation extends to maintaining minutes of special meetings.
Intellectual Property: Review U.S. and foreign trademark filings and registrations to check impending renewal or filing deadlines. Review all inventions, brands, and other things the Company has created in the past year to consider whether they are or should be protected by patents, trademarks, copyrights, and trade secrets. Ensure that all Company intellectual property is the subject of an agreement properly transferring ownership to the Company from the person or entity that created it, including yourself if you are the owner. Proper registrations are critical to ensure you can enforce your intellectual property rights. Additionally, for intellectual property licensed from or to third parties, ensure proper written licensing agreements are in place. Confirm that agreements address emerging uses of content, including any use in connection with artificial intelligence, and do not rely on implied rights or assumptions regarding permitted uses.
Data Security and Privacy: Ensure all personally identifiable data held or handled by the Company is subject to processes and procedures for maintaining data security, responding to user requests, and responding to a security breach that complies with applicable California and federal law. Confirm that data collection, use, retention, and sharing practices are accurately reflected in the Company’s privacy policies and agreements, and that agreements do not grant rights to use data beyond what applicable law permits. Confirm that appropriate agreements are in place with any third parties that process personal information on behalf of the Company and that roles and responsibilities are clearly defined. Ensure the Company maintains a written data breach response plan.
Website Opt-Out Signal Compliance: Beginning January 1, 2027, businesses operating websites in California must support web browser functionality enabling consumers to send an automatic opt-out preference signal for the sale or sharing of personal information. Confirm development timelines with internal or external website administrators by the end of 2026 to ensure compliance by the effective date.
Founder Agreements: Ensure the Company's founders have executed appropriate agreements governing their relationship to the Company, including documents formally granting founders their equity interest in the Company, whether on a vesting schedule or otherwise.
Vendor (and License) Agreements: Review all agreements to track termination windows and renewal procedures. Formally terminate agreements and statements of work with vendors that are complete, expired, or no longer relevant. Confirm that agreements with vendors handling personal information include appropriate data protection obligations.
Customer Agreements: Review terms of service, privacy policies, SaaS Agreements, EULAs, and other customer agreements issued by the Company to confirm they reflect current practices and remain legally current. Confirm that agreements do not include outdated or unenforceable terms and that users are provided with reasonably conspicuous notice of such terms and take clear action manifesting assent. Review whether any updates to such agreements require renewed user consent and confirm that any re-consent process is properly implemented. For subscription or recurring billing offerings, confirm compliance with applicable automatic renewal requirements. For non-form agreements, track termination dates and renewal procedures, and formally terminate any statements of work that are complete or expired.
Incentive Equity Plan: Commission an annual 409A valuation to inform the option price and the Company’s Incentive Plan if the prior 409A valuation is out of date. Ensure the appropriate amount of equity is allocated to the Incentive Plan and that the terms of the grants, including vesting and exercise periods, are still appropriate.
Investor Relations: Ensure that documents are in place for any individuals or entities that have loaned money to or invested in your Company. This includes stock purchase agreements, member interest purchase agreements, convertible or promissory notes, and SAFEs/SAFTs.
Insurance: Conduct an insurance review, including renewal status and deadlines for all coverage. Consider whether coverage remains appropriate for the Company’s operations, including general liability, employment practices liability, and cyber-related risks.
Accountants and Accounting: Confirm that the Company’s financial records are properly maintained, including filing state and federal tax returns. We generally recommend retaining an accountant to assist with these filings.
Cooper & Iravani LLP hopes this 2026 Annual Legal Business Checklist serves as a practical guide for identifying areas that may require attention, strengthen compliance efforts, and support strategic business planning throughout the year ahead.
Our team remains dedicated to helping clients navigate these ongoing challenges with thoughtful, business-minded legal counsel tailored to their specific needs. If your company would benefit from a more personalized review or guidance on any of the topics addressed in this checklist, we welcome the opportunity to connect and support your business in 2026 and beyond.
Please feel free to contact us to schedule a personalized consultation and discuss how we can help support your company’s legal and business objectives!
