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What are the steps I need to take in order to change the legal structure of my business in Pennsylvania?

Picture of Chris Battis By   ·  1 minute read

To change the legal structure of your business in Pennsylvania, you will need to follow a few basic steps:

  1. Determine the new legal structure you want to adopt: Before anything else, you need to decide on the new legal structure you want to adopt for your business. There are several legal structures in Pennsylvania, including sole proprietorship, partnership, limited partnership, limited liability company (LLC), and corporation. Each structure has its own advantages and disadvantages, so it's important to understand what they entail before making a decision.
  2. Register your new structure: Once you've decided on your new legal structure, you'll need to register it with the Pennsylvania Department of State. Depending on the structure you choose, the registration process may involve filing a new certificate of formation, an amendment to your existing certificate, or a new business entity entirely.
  3. Notify the IRS: If you have an Employer Identification Number (EIN), you will need to notify the IRS of your new structure. If you are changing from a sole proprietorship or partnership to an LLC or corporation, you will need to apply for a new EIN.
  4. Update your licenses and permits: Depending on your business, you may need to update any licenses or permits you hold under your new legal structure.
  5. Notify your accountant and insurance providers: You will need to inform your accountant and insurance providers of the change in legal structure to ensure that all financial and insurance matters are properly handled.

It's important to note that changing the legal structure of your business may have tax implications, and you should consider consulting with a tax professional to ensure that you are properly handling any tax consequences. Additionally, depending on your industry and the specifics of your business, there may be additional requirements or steps you need to take in order to change your legal structure. As such, it is advisable to seek the advice of a licensed attorney for guidance on your specific situation.