If you have already established and registered your business and did not realize the various benefits of forming a limited liability company, you may wonder if you can change your mind. Actually, converting your existing business to an LLC is probably easier than converting an LLC to a different type of business. How you go about the conversion to an LLC business depends on your current establishment.
A sole proprietorship might be the simplest to convert, but a business partnership or corporation may be more involved. What is a business partnership? It is when two or more people share in the ownership of an unincorporated business. It is often treated much like a sole proprietorship in that it is a pass-through business structure.
Keep in mind that filing LLC paperwork to convert an existing business may also have extensive tax implications. Typically, corporations will have to pay additional taxes because the IRS views the conversation as if the business sold its assets to the LLC. Start the conversion process by filling out the necessary forms through GovDocFiling.