Can You Change the Legal Structure of Your Business?

Can you change the legal structure of your business?
Changing business structure depends on what the current structure of your business is. The easiest change to make is from a sole proprietorship or simple partnership to a more complex business structure. If you’re changing your business structure to a corporation, you’ll need to act like a corporation.
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You might discover that the legal structure you initially selected is no longer the most appropriate as your firm expands and changes. Fortunately, it is feasible to alter your company’s legal structure. Although this process can be challenging, with the appropriate direction, it can be completed without incident.

Dissolving the current entity and establishing a new one is one way to alter your company’s legal framework. When the present structure is no longer suitable for the demands of the organization, this option is often chosen. For instance, you might decide to dissolve your sole proprietorship and establish an LLC if you originally operated as one but now want to safeguard your personal assets. This approach, though, can be costly and time-consuming.

Converting the current entity to a new legal structure is an additional choice. Generally speaking, this option is less expensive and time-consuming than dissolving and starting over. You might decide to change your single proprietorship into an LLC or your LLC into a corporation, for instance. Depending on the state you are operating in and the legal system you are converting to, the conversion procedure differs.

If you have a business in Georgia and want to modify your DBA, the procedure is rather simple. A modification must be submitted to the Georgia Secretary of State’s office. Both your current DBA and the new DBA you want to use should be listed in the modification. The cost of filing the modification depends on the kind of entity you have and is subject to change.

The price of forming an LLC in Georgia will vary on a number of variables, including the kind of LLC you select and the sort of business you run. The Georgia LLC filing charge is $100, although there could be extra costs for services like name reservation, expedited processing, and others.

You must submit an Articles of Amendment to the Georgia Secretary of State’s office in order to change the articles of incorporation in that state. The amendment must specify the modifications you want to the articles of incorporation. The cost of filing the modification depends on the kind of entity you have and is subject to change.

Finally, you might need to file an amendment with the state if you want to change your business purpose. Depending on the legal makeup of your company and the jurisdiction in which you conduct business, different procedures must be followed when changing your organization’s purpose. Before changing your business objective, you can occasionally need the shareholders’ or members’ consent.

In conclusion, changing your company’s legal form is conceivable but can be challenging. To be sure you are choosing the best course of action for your company, it is imperative to speak with an attorney or other trusted expert before making any changes. You may make sure that your company is positioned for long-term success by carefully weighing your options.

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