Converting a Sole Proprietorship to an LLC: Key Considerations
Many small business owners start as sole proprietors but later realize the need for greater legal protection. Converting to an LLC can provide liability protection and tax benefits, but the process requires careful planning.
Steps to Convert Your Sole Proprietorship to an LLC
- Choose a Business Name – Ensure your desired LLC name is available and complies with state rules.
- File Articles of Organization – Submit paperwork to formally register your LLC.
- Create an Operating Agreement – Establish business rules and ownership structure.
- Obtain an EIN – Get a new Employer Identification Number from the IRS.
- Update Licenses and Bank Accounts – Transfer business permits, contracts, and financial accounts to the LLC.
How Edwards Law Can Help
Transitioning from a sole proprietorship to an LLC can be complex. Contact us today to schedule a consultation and let Edwards Law guide you through the process to ensure a smooth and legally sound conversion.
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