It may be both exhilarating and overwhelming to launch a business. Selecting a company entity type is one of the crucial choices you must make early on. Your entity type has an impact on your taxes, liabilities, and daily activities. But what if you later have a change of heart? Can you alter the kind of your entity?
Yes, you may change your entity type, to give you the quick answer. However, depending on the state and entity type you want to transfer to, the procedure and requirements change. The process is simple, for instance, if you wish to go from a sole proprietorship to an LLC. You must apply for a new EIN and file your articles of organization with your state. The process is more difficult if you wish to change from an LLC to a corporation and you could need legal aid.
Although altering entity types is allowed, there are a few drawbacks to take into account. For instance, creating an LLC may offer limited liability protection, but it also entails paperwork and yearly fees. Furthermore, LLCs might pay more in self-employment taxes than corporations do. Before making any modifications, it’s critical to assess the advantages and disadvantages of each entity type.
The name of your company is a crucial factor to take into account when starting a business. Should you register a trademark for your company name before creating an LLC? Both yes and no, is the answer. Even though it’s not legally required, trademarking your company name can be advantageous. By registering your name as a trademark, you can prevent others from using it and establish the uniqueness of your company. To make sure your name isn’t already taken, it’s also crucial to conduct a comprehensive search.
Let’s now answer a typical grammar query regarding LLCs. Should LLC be followed by a comma? Yes, it is the answer. The term “limited liability company,” or LLC, refers to a particular kind of business entity. The same comma that you would place before “Inc.” or “Co.” should also be placed before “LLC.”
How do you tell if the name you want to use for your company is already taken? To make sure no one else is using your selected name, do a thorough search before registering your firm. Start by looking through the business databases maintained by your state and the United States Patent and Trademark Office. To make sure no one else is using your name, you could also scan the web and social networking sites.
In conclusion, changing your entity type is conceivable, but it’s important to assess the advantages and disadvantages of each form and get legal counsel as needed. Additionally, you may safeguard your brand and avert legal problems in the future by trademarking your company name and completing a comprehensive search. Before choosing a company name, keep in mind to put a comma before LLC and to do a thorough search.