Changing the structure of a business is not uncommon, especially when things change and the present structure is no longer useful or satisfactory. For instance, if you started out as a sole trader and your business expanded so rapidly you decided to take on a partner to help with the work, or even to just provide more finance. You would then need to restructure the business to be a partnership.
But there are many other reasons why you may be considering restructuring and there are things to consider before going ahead.
- It’s important to seek legal advice from suitable commercial lawyers and then be clear with your instructions about why you need to restructure so you can be sure that this is the best way forward and it will meet your future needs better than the present structure.
- Know your options and the implications of each one. There are tax and other implications with each type of business structure, so these must be taken into careful consideration to ensure the new structure is right for your goals.