Can a sole proprietorship change to a corporation as business grows?

Learn how a sole proprietorship can change into a corporation.

These are legal entity questions, but you can. This is where you consult with your CPA or your accountant or an attorney because this thing deals with licensing and tax implications. The fact is, there are businesses that are started in your backyard that eventually become bigger than your home and then become more of a different kind of a taxable entity. So that could go from a sole proprietorship to a partnership to corporate entities. Those have both legal and tax implications. So how it's structured really has to be done in conjunction with those professionals.

Written by Ellen Thrasher -
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