Chapter 6
Converting Your Current Business into an LLC
IN THIS CHAPTER
Determining whether a conversion is for you
Understanding the tax implications
Completing the conversion
Dealing with the details of conversion
Chances are, if you’re considering forming an LLC, you’re not starting from scratch. LLCs are relatively new entities, and if you’ve been in business for a long time, you’re probably operating your business or maintaining your assets as a sole proprietor, partnership, or corporation. You likely know the benefits of operating under an LLC, but you may not know how to convert your existing business into one.
When you’re busy running a bustling enterprise, it can be a daunting prospect to purposefully cause chaos by changing your infrastructure and switching to a completely different type of entity. In some cases, you may need to navigate a tax minefield, spend a lot of time changing contracts, restructure business loans, and possibly even update marketing materials (if you change your business name in the process).
However, if you have decided that a conversion to an LLC ...
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