If the legal structure of your business entity is no longer well-suited for your business, is there an easy way to convert it into a different structure? New Jersey is moving toward simple processes for converting business entities. Considera lo siguiente…
Entity choices…
Today’s entrepreneurs have many choices when it comes time to choose a structure for their business entities. In addition to a traditional corporation, Asociación, or limited liability company (“LLC”), several hybrid structures are available as well. Sin embargo, puede llegar un momento en que la forma original de la entidad ya no sea adecuada para el negocio. algunos estados, como Delaware, proporcionar un sencillo, proceso de “un paso” para convertir una entidad comercial de una estructura legal a otra. Con rara excepción, La ley de Nueva Jersey no ha proporcionado un procedimiento simplificado para las conversiones comerciales.. En la mayoría de los casos, una conversión requerirá la formación de una nueva entidad y una fusión estatutaria, o alguna forma de estrategia de disolución y transferencia.
La ley de conversión de Nueva Jersey...
After many years of languishing in the New Jersey legislature, Senate Bill 142 was signed into law on May 8, 2023. En virtud de la nueva ley, on and after November 4, 2023, an LLC may convert into a corporation and a corporation may convert into an LLC through a relatively simple procedure. Desafortunadamente, simple procedures for converting all forms of business entities in New Jersey remain elusive. Other than converting a general partnership into a limited liability partnership, the conversion of partnerships remains somewhat cumbersome. Senate Bill 134 addresses this shortcoming, but has not been passed into law as yet. Si se aprueba, a partnership or limited partnership will be able to convert into another form of business entity and other forms of business entities will be able to convert into a partnership or limited partnership through a relatively simple procedure.
Conclusión…
It is encouraging to see New Jersey begin to follow the lead of other states and provide simple procedures for converting the legal structure of business entities. Sin embargo, even though the mechanics of conversions are becoming more streamlined, conversions can have significant legal and tax consequences. Así, it is prudent for business owners to obtain legal and tax advice prior to implementing a conversion. Please feel free to contact me if you would like more information about converting business entities.
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