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3 times you may want to change your business structure

On Behalf of | Feb 22, 2022 | Business Formation & Planning

When you start a business, choosing the right structure is one of the most important decisions. The form you use will determine everything from your tax liability to what steps you have to take to sell the company later.

Some business owners realize eventually that they need to change their business structure. You may have even wondered if such a change might benefit you or your company. What are some of the more common reasons that people change their business from one form to another?

They want to take out a partner or move on without one

Maybe you started the company all on your own, and now you would like to train a partner to take over for you when you retire. Perhaps you have long run a business with a partner, but they want to move on and start a separate company now. Adding or removing a partner or even multiple co-owners is a common reason to change your business structure.

The company has grown substantially

When your business is successful, you may eventually need to create a more formal business entity. You may want to change sole proprietorship to an LLC or from an LLC to a different corporate structure. Changing your business’s structure could help you access resources, like investment capital.

When they change their business model

Maybe you started off trying to operate an electronics retail shop, but you have since realized that the vast majority of your income comes from repair work. If you intend to change what your company does or how it operates, you may need to change the business model that you used to reflect those changes.

Realizing that it may be time to change your business’s structure can help you protect your company and its finances.

Get Started today

Contact us today if you have a business you need to start, grow, or alter. To learn more about Thirdinline Legal LLC and how we can help you achieve your goals, contact us online or by telephone at 312-878-6072