All businesses are interested in making improvements along the way as their operation grows but knowing exactly what to do can be challenging. Increased sales and new additions are usually the focus but making changes can also have unforeseen outside ramifications. New responsibilities could be the ultimate result, and especially when legal issues could arise from the change. Improvements often result in increased value of a business, which could also lead to additional tax implications beyond increased income taxes. And many changes can bring new legal requirements such as licenses and inspections. Regardless of the changes being considered, it is always a good decision to consult with our experienced Indianapolis business attorneys at McClure McClure & Davis before any transition begins.
One modification that businesses often evaluate is adding business partners, which means they may want to change the business structure from a sole proprietorship to a limited liability company. This change has a direct impact on tax responsibility assignment, but often it carries many advantages. Any positive modification to a business should always be considered, but it is important to consult with an experienced business attorney who can provide advice and handle all of the structure change filings needed to make the transition happen.
Changes to Avoid
All businesses will have some sort of liability associated with their operation, and it is always best to evaluate what could happen following any business modification. The primary “don’t” for any businessperson is increasing company liability without increasing company protection and not assessing potential problems following a major change. An experienced business attorney will understand what to expect before it happens, and their advice can be vital to sustained business growth for any entrepreneur.
Making changes to your business on a whim without a feasibility study beforehand is never good policy. Indiana business managers should contact McClure McClure & Davis Indianapolis business attorneys for solid representation before making any operational modification.
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