As 2026 begins, it's the perfect time for small business owners in the Carolinas to reflect, regroup and plan. Beyond financial goals and marketing strategies, here are five legal resolutions to protect and strengthen your business this year.
1. Put Everything in Writing
Still relying on handshakes and verbal agreements? It's time to make it official. Whether it's a vendor agreement, client contract or employee policy, get it in writing. Written agreements clarify expectations, reduce the risk of disputes and provide a legal framework if things go sideways.
2. Review (or Create) an Operating Agreement
If you're an LLC and don't have a signed operating agreement, you're not alone — but that doesn't mean it's safe. Operating agreements confirm ownership, decision-making authority and what happens if someone exits or the business hits a rough patch. Without one, state default rules apply, and those may not reflect your intentions.
3. Check Your Worker Classifications
Misclassifying employees as independent contractors can lead to costly penalties from the IRS and state agencies. A quick rule of thumb: if someone works set hours, reports only to you and uses your tools or space, they're probably an employee.
The distinction matters for tax withholding, benefits, workers' compensation and liability. When in doubt, consult an attorney before making classification decisions.
4. Prepare for New Laws
Several legal changes impact Carolina businesses this year:
- South Carolina: If you operate a business that serves alcohol, the new tort reform and liquor liability law now requires mandatory alcohol-server and manager training. The law reconfirms minimum insurance coverages and creates opportunities for businesses to reduce their insurance costs by meeting certain requirements.
- North Carolina: Revisions to the NC Business Corporations Act are business-friendly, supporting corporate growth, governance and operational flexibility.
Staying ahead of these changes can save you headaches — and money — down the road.
5. Update (or Finally Create) Your Employee Handbook
Workplace norms and legal requirements evolve. If you have a handbook, review your policies on issues like remote work, social media and paid leave. If you don't have one, now is the time to create it.
A well-drafted handbook sets expectations, protects your business in disputes and shows employees you take compliance seriously.
Let's make 2026 your strongest year yet.
This article was originally published in the January 2026 issue of Stroll Firethorne magazine. Written by Melissa G. Cassell, Partner at Morton and Gettys Attorneys at Law (mortongettys.com, 803-366-3388).