When you started your Nevada business, you had a vision for what you hoped your company would look like in a few years. Things in business are rarely predictable, and what your company looks like now can be very different from what you imagined. Sometimes, this may mean that it’s necessary for you to make changes to various aspects of your company.
The structure of your business is an important choice you will have to make during the formation process. This choice affects everything from how your taxes will work to whether you will be personally liable for business debts. The decision you made in the beginning may not work for your company anymore. Fortunately, it is possible to change the entity of your company.
What happens when you change your company’s structure?
Changing the structure of your business is not something that you just decide to do one morning. This is a significant decision, and this choice typically follows a period of careful consideration, input from various legal and financial professionals, and other cautionary steps. You will find it helpful to carefully weigh out the benefits and the drawbacks of your preferred entity choice compared to what you currently have. The type of structure directly affects the following things:
- The amount of control you have over your own company
- How much and the types of taxes you have to pay
- How you can operate your business on a daily basis
You may not be certain that changing the structure of your business is the right choice for you. The most common reason why businesses change their entity is when their company has changed drastically and they need to make adjustments. This specific choice can help some businesses simplify their tax situation or add additional protections for their company.
Protecting the future of your company
When you are making important decisions that will affect the long-term interests and operations of your company, you will want to think carefully about the positive effects and potential drawbacks of any choices you may make. Before you move forward, you will find significant benefit in speaking with an experienced attorney about your situation.
An assessment of your case can help you see what options are available to you and how you can pursue an outcome to your current situation that will allow your business to have a strong and prosperous future.