When you thought that your personal assistant company would generate a few thousand dollars a month and you were the only person working there, operating it as a sole proprietorship didn’t seem like a risk. It just seemed like the simplest way to go from having a great idea to running a successful company.
However, instead of just renting out your services, you brought on more people to keep up with demand. Your company is growing bigger every day, and you want to keep expanding. To make that happen, there will inevitably be more risks involved. You may want to better protect yourself by changing your business to a more complex legal entity.
Although it is usually easiest to choose the right business form when you first start the company, there are always going to be people who need to change their business after starting it. The good news is that you can actually change the form of your business.
Altering your business structure is a bureaucratic process
From submitting paperwork to the state to providing notice to your financial institution, there will be many key steps involved in changing the form you use to do business. You may need additional insurance and licenses as you change into a larger-scale business entity. You may also need to look into how you protect your business with contracts.
From the agreements you have with your staff members to how you make arrangements with your clients, there may be better ways to protect yourself as you scale up your operations. Revisiting your contracts, employee roster and other key elements of your business can help you keep everything operating smoothly despite the imminent change for your company.
It can be prohibitively difficult to manage all the needs of your company while simultaneously trying to learn about the process of legally changing your business type. Making the decision under pressure and without advice is likely part of the reason why you need to make a change now.
Instead of trying to manage that process in-house, it may be smarter and far more efficient to cooperate with a lawyer who can advise you on how to change your business structure and what protections will be necessary as your business continues to grow. Updating your business’s legal form is one of many ways for you to keep your company growing and thriving.