Corporate law – conversion of a sole proprietorship into a limited partnership
When an individual’s business activity based on a business registration reaches a significant size, it is necessary to minimize risks and develop a legal formula in which the business can safely continue.
Because of the tax advantages (no double taxation), more and more clients are choosing to establish a limited partnership with a limited liability company as the general partner. Such a solution offers security for the entrepreneur’s personal assets while offering favorable income tax treatment.
On behalf of a large trading company, the law firm is leading the process of converting a sole proprietorship into a limited partnership. It is necessary to develop a concept, prepare a limited liability company agreement and limited partnership, developing rules for contributing a business as a contribution to a limited partnership. Aspects of the transition of the workplace to a new employer also need to be considered.