Is it possible to convert one business structure into another due to change in business conditions, needs or requirements?
During the life of business, things are bound to change. For example, in the early stages of business, you may have preferred to keep things simple with an LLP. But as your business and expectations grow, you may need to change your business structure. After all, what may have worked for your business during the first few years of its existence may not be optimal for you now.
If you’re considering changing your company from one business structure to another, there are a few things to keep in mind. The procedures themselves are not necessarily difficult or complex, but will typically involve some legal steps, such as a merger or the dissolution of one entity and the creation of a new one.
There can be significant tax implications involved with these moves, so seek the advice of an expert or tax advisor to determine what’s best for your business.