Florida Business Law: What You Need to Know About Statutory Conversions
In order to thrive, a business needs the proper legal foundation. Legal form is an important thing for entrepreneurs to consider when creating a new company. Some businesses work best as a partnership, others as a limited liability company (LLC). You need the appropriate structure for your business. Of course, by nature, business is not static. There may come a time when your original legal form no longer makes sense for the current needs of your company.
Fortunately, there are solutions available to this problem under Florida law. Companies do not always need to be dissolved to change form. Instead, they can often be converted from one form to another. Generally, this is not something that business owners should try to do on their own. If you are considering converting your company in South Florida, you should consult with an experienced West Palm Beach business law attorney for professional legal guidance.
The Steps to Convert Your Business in Florida
- Know the Statutory Requirements
To start, you need to know the relevant state law on converting your business. For example, if you are converting a domestic corporation into another business entity in Florida, you must follow the requirements of Florida Statutes Section 607.1112. You should consult with a business law attorney who can help you ensure that your proposed conversion is both possible and wise.
- Draft a Plan of Conversion
Next, your business needs a workable plan of conversion. The specific nature of this plan will vary considerably, depending on the specific needs and structure of your business. A South Florida business law attorney can help you draft an effective plan of conversion.
- Ensure that the Plan Has Approval
Before you can move forward, your plan of conversion must be approved by a majority of the company’s owners. In some cases, this step will be easy. It is possible that all interested parties are already on board with the idea. Though, in other cases, some owners may require convincing that conversion makes sense.
- Draft New Formation Documents
Your conversion cannot become effective until you have new formation documents in place. No matter the structure, it is advised that your company always operates under professionally crafted business formation documents. Not only will these documents help to protect your rights, but they will always reduce the possibility that disputes or other problems will arise down the line.
- Obtain Confirmation from the State
Finally, you need to make sure that you get your hands on the official confirmation from the State of Florida that your statutory conversion has taken effect. These documents are important. Always get verification that your conversion has been approved and recorded.
Contact Our Florida Business Law Attorneys Today
At Pike & Lustig, LLP, we have the skills and experience required to help you convert your business to another statutory form. For a free, no strings attached review of your business law case, please do not delay in contacting our law firm today. From our offices in West Palm Beach, Wellington and Miami, we represent business owners in Broward County, Miami-Dade County, Palm Beach County, and Martin County.