The question of how to structure your business is essential, but the ideal business organization for you may change over time. Between legal and financial liabilities as well as the potential for growth, it can sometimes be a good idea to reorganize your company. But when might it be a good idea to consider reorganizing your business, and what are the potential benefits of doing so?
What Does it Mean to Reorganize Your Business?
Put simply, reorganizing your business is the process of changing how your company is legally structured in order to gain certain legal or financial benefits. For example, this might mean incorporating an unincorporated business, or filing to have your company registered as a Limited Liability Company (LLC). The exact requirements for business reorganization depend on what your current business structure is, and what you are looking to shift into.
Why Might You Reorganize Your Business?
There are any number of reasons you might be considering reorganizing your business. In many cases, this is a matter of limiting legal and financial liability to ensure issues like litigation costs or business expenses have a minimal direct impact on your personal finances. Other times, it is about finding a way to minimize your tax liability, or to restructure in a way that can make it easier to expand your business.
What Are the Potential Benefits of Reorganizing?
Depending on how you intend to restructure your business, you could save a significant amount of money on taxes or other expenses. You can also protect yourself from legal or financial problems that may arise in the future. Additionally, certain types of business structures are better for larger businesses, especially those looking to do business in international markets.
What Should You Do?
Ultimately, the best decision on how to reorganize your business will depend on your company’s specific needs. That is why you should speak to a lawyer with experience handling business law issues, especially business reorganization. He can lead you through the steps you need to restructure your company in a way that best suits your interests, while protecting you from potential legal issues that may arise.
If you have a business law issue, give the Law Office of Andrew Ross Sack a call. Andrew Ross Sack is a New York and New Jersey business lawyer who has considerable experience in handling the many aspects of business law. To schedule a consultation with New York City/Long Island/Westchester business lawyer Andrew Ross Sack, call (516) 526-3319 or visit his contact page.
