How Do I Change My Corporation to a Sole Proprietorship?
How Do I Change My Corporation to a Sole Proprietorship? Changing the legal structure of your business is not an impossible task. In fact, it's a relatively simple process, but there are some tax consequences to consider. In addition, there are a number of states that offer simplified conversion processes to help make it easier to make this transition. However, if you're not sure whether or not you're a good candidate for conversion, you might want to speak with a tax advisor. Converting You can choose to convert from a sole proprietorship to an LLC (limited liability company), which provides limited liability protection and offers pass-through taxation. However, it's important to remember that your personal assets can be at risk if your business cannot pay off its debts. Be sure to evaluate your assets, including those you may have acquired since you started your business. When you decide to convert to an LLC, you'll need to make a few changes to your business. You...