How Do I Switch My Sole Proprietorship to an LLC?

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Overview

Changing from a sole proprietorship to an LLC is relatively easy if you follow the necessary steps.

Steps to Change from Sole Proprietorship to LLC:

  1. Confirm Business Name
  2. File Articles of Organization
  3. Draft Operating Agreement
  4. Transfer Assets

Considerations when Changing to an LLC

  • Some states have laws restricting certain professionals from forming LLCs.
  • Seek advice on potential risks before transitioning.

EIN Change Process

  1. Confirm Business Name Availability
  2. File Articles of Organization
  3. Draft Operating Agreement
  4. Cancel DBAs
  5. Transfer Assets
  6. Obtain New EIN

Additional Info:

  • Maintaining personal and business assets separately is crucial for limited liability as offered by an LLC.
  • LLCs may incur more state fees and taxes compared to sole proprietorships.

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