Healthy businesses are constantly growing and changing, and those changes can necessitate alterations in the overall structure of the company. The time to make those changes depends on a variety of factors that may arise over the growth of your company, and it’s important to make those changes promptly in order to maintain efficiency within the organization as well as compliance with federal and state laws.
Changes in Management
As a company grows, so too will its leadership, and you may have to take on more people in order to fill important corporate leadership roles. The simplest example of this is if you are the sole proprietor of a business and decide to take on a partner. That will mean changing your entity type to a partnership or even an LLC, depending on the nature of your business.