{"id":2318,"date":"2022-09-30T07:32:02","date_gmt":"2022-09-30T07:32:02","guid":{"rendered":"https:\/\/www.mlgbusiness.com\/?p=1656"},"modified":"2022-09-30T07:32:02","modified_gmt":"2022-09-30T07:32:02","slug":"when-is-it-too-late-to-change-my-business-structure","status":"publish","type":"post","link":"https:\/\/fire.h50.us\/~morganpolicy\/blog\/when-is-it-too-late-to-change-my-business-structure\/","title":{"rendered":"When is it Too Late to Change My Business Structure?"},"content":{"rendered":"<h1>When is it Too Late to Change My Business Structure?<\/h1>\n<p>Our MLG Business Litigation Group <a href=\"\/practice-areas\/business-formation-attorney-florida\/\">business formation attorneys in Florida<\/a> and <a href=\"https:\/\/www.ca.gov\/\">California<\/a> know how important it is to start your company on the right legal footing. That includes choosing a business structure that aligns with your current and future goals in the beginning.<\/p>\n<p>Whether you started your small businesses to operate as a sole proprietorship or LLC, your company may ultimately be best served as a <a href=\"\/business-start-up-and-document-review-packages\/partnership-document-preparation\/\">partnership<\/a>, corporation, or cooperative.<\/p>\n<p>That is difficult to know upfront, especially when growth opportunities take you by surprise.<\/p>\n<p>The reality is, it is possible to change your business structure at any point, but a change will require careful consideration, planning, and consultation from business and <a href=\"\/attorneys\/\">legal professionals<\/a>.<\/p>\n<p>Here are a few common changes business owners throughout the U.S. make often.<\/p>\n<h2>Converting a Sole Proprietorship to an LLC<\/h2>\n<p>When one person starts out on his or her own, it may make sense to initially operate as a sole proprietorship. However, it may not take long to realize this organization type puts your business more at risk than it needs to be.<\/p>\n<p>Commonly, sole proprietors convert their companies to LLCs to create a clear division between business and personal assets.<\/p>\n<p>Sole proprietorships operate under an individual\u2019s social security number and are not registered business structures. That means all the business owner would need to do is <a href=\"https:\/\/www.policyadvocate.com\/wp-content\/uploads\/2022\/04\/Business-LLC-Start-Up-Package-Final.pdf\">take the necessary legal steps to form an LLC<\/a>.<\/p>\n<h2>Converting an LLC to a Corporation<\/h2>\n<p>Some LLCs grow quickly and require restructuring to evolve.<\/p>\n<p>Once an LLC reaches a certain size, converting to a corporation may be the next logical step.<\/p>\n<p>The process of converting from an LLC to a corporation will depend on the state in which you operate, but can be <a href=\"https:\/\/www.policyadvocate.com\/wp-content\/uploads\/2022\/04\/Business-Corporation-Start-Up-Package-Final.pdf\">much simpler with legal representation<\/a>, so you are shifting your goals smoothly and within the letter of the law.<\/p>\n<h2>Converting a C Corporation to an S Corporation<\/h2>\n<p>C Corporations tax both the business profits and individual income, which may require converting to an S Corporation to lower taxes.<\/p>\n<p>S Corporations are not subject to federal income tax, since they qualify as \u201cpass-through\u201d business entities, which allow shareholders to pay income tax only on their own profits.<\/p>\n<p>Shifting from a C Corporation to an S Corporation requires filing the proper paperwork with the <a href=\"https:\/\/www.irs.gov\/\">Internal Revenue Service<\/a> (IRS). However, there are eligibility and timing requirements that the current C Corp must qualify for before making the transition. We can help.<\/p>\n<h2>Call MLG Business Litigation Attorneys in Florida &amp; California Today<\/h2>\n<p>If you find the time has come for your company to evolve, and you are ready to take the next step, we can help you successfully navigate today\u2019s crowded business landscape and ensure you are aware of all the benefits and potential ramifications of converting your company to a different operating structure before finalizing your decision.<\/p>\n<p><a href=\"\/contact-us\/\">Contact<\/a> our <a href=\"\/\">MLG Business Litigation Group in Florida<\/a> and California today at <a href=\"tel:7867069228\">(786) 706-9228<\/a> to schedule a free initial consultation to learn more <a href=\"\/about\/\">about our law firm<\/a>, so we can help you align both your business and legal needs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When is it Too Late to Change My Business Structure? Our MLG Business Litigation Group business formation attorneys in Florida<\/p>\n","protected":false},"author":1,"featured_media":1660,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[73],"tags":[],"class_list":["post-2318","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-law"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>When is it Too Late to Change Our Business Structure?<\/title>\n<meta name=\"description\" content=\"It is possible to change your business structure at any point, but a change will require careful consideration, planning, and consultation from the business.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta 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