Chapter 7
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, the last thing you want to do is cause any more chaos by changing your infrastructure and switching to a completely different type of entity. In most cases, you have to navigate a tax minefield and spend a lot of time changing contracts, business loans, and possibly even marketing materials (if you change your company name in the process) over to your new company. Although the conversion to an LLC can be time-consuming, ...
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