• June 2018
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How do I change my corporation to a sole proprietorship?

Everything Kelly said is correct. Although one would think that just abandoning your C-Corp would be sufficient, it is NOT (especially if you are trying to limit the cost of this transition). The process to do this will depend on who owns it (is it just you?), and what processes are identified in the by-laws for taking such action.

Realistically, you can probably just do this on your own. But if you are trying to find the most cost-effective method, then you should definitely consult a lawyer. Experienced business lawyers, particularly those in the DE area, can help you find the best alternative for your company moving forward.

Aside from going about this process, you should definitely consider the implications of this transition as well. C-Corps give much greater protection to their shareholders, whereas Sole Props are limited in this regard. Although you might be saving the small franchise fees by switching entities, you may end up with greater personal expenses as well. So once again, good to speak with a lawyer first.

You should take a look at our site, LawTrades. We have highly qualified attorneys experienced in Delaware law that could help you out. Our site allows you to complete much of your legal work through our site, limiting the time and hassle of the typical lawyer-client relationship.

Although this sounds like another added expense onto this process, it may save you more money in the long run. For starters, there will certainly be some sort of personal tax implications involved with changing your company, and finding a lawyer that can put you in the right direction could save you from this problem.

Also, you want to make sure that you don’t do anything improper under DE law that may cost you more money as well. The state can fine you or the company, and take other steps to make this process way worse than it has to be.

I hope this is helpful. Please contact me if there is anything I can do to help you out. Best of luck!

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