Knowing how to advise clients about switching business entities is important for client retention and your firm’s reputation. Periodically examining a client’s business can tell you if and when a change is warranted.
Reasons for switching business structures include liability and investor requirements. A business initially established as a sole proprietorship may now need more liability protection or may wish to offer stock or go public.
Business structures aren’t carved in stone. As client needs evolve, review all options before making a change in entity.