As 2018 gets underway, now is the perfect time to review your current business structure and determine if any changes need to be made in the new year. As your business grows, evolves and changes, it might make sense to change your current structure to something that provides greater risk coverage and more adequately suits your business goals.
When is the best time to make a change? How do you change it? If you change it, can you switch it back later? These are questions that are best answered by an attorney with experience in small business law, like those at LexLaunch.com. Each business structure has different legal and compliance obligations, so make sure you understand the differences before changing your business structure.
Here are common reasons to consider changing the structure of your business:
- Have you taken on a business partner?
- Have your profits increased or taken a downturn?
- Have you expanded your offerings?
- Are you looking to purchase real estate for your business?
- Did you buy an existing business, or did another owner leave the business?
- Did you increase the number of employees at your business?
- Have your financial goals changed recently?
- Are you reorganizing the operations within your business?
- Are you looking for investment opportunities or looking to sell your business in the near future?
Each business structure has different legal and compliance obligations, so it is important to have an attorney explain the differences before you decide to change your business structure. A good attorney will take the time to meet with you and discuss the following before providing guidance:
- Pros and cons of changing your business structure
- Types of each kind of business structure
- Determining a business plan for your new structure
- Whether partnership agreements or corporate governance documents are required
- Whether new trademarks or business names need to be registered
- Review other agreements that are currently in place or will need to be formed with the new structure
You don’t have to wait until you need to change your business structure to talk with a professional. In fact, it’s better to plan for your business needs now and make those changes before you need them. With careful planning with an experienced attorney, you can take advantage of opportunities as they arise. You can also insure that you are personally and professional protected from risk as your business grows. Don’t wait to review your business structure, call the professionals at LexLaunch.com today at (816) 434-6610 or click here for more information.