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Before you restructure your business, you need to consider the reasons why you want to change and what you aim to achieve with your new structure.

Different business structures have different legal, tax and compliance obligations. You need to understand the differences between each before you decide if changing business structures is the right move for your business.

Use our 4 steps to help you know what to do before you change your business structure.

1. Review your current business structure

Understand your current business structure’s legal, tax and reporting obligations.

2. Understand structure differences

You need to investigate each business structure and its obligations carefully to decide which best suits your needs.

If you plan to move from a sole trader to a company, read our sole trader to company information.

3. Seek advice

Speak to a business adviser, solicitor or accountant to seek advice regarding your business and personal circumstances. They’ll be able to help you understand the different structures and what you need to do.

4. Update your plans

Review and update your business plan, marketing plan, and succession plan to ensure you consider your business goals and objectives before you decide to change your business structure. If you plan out your business restructure, it’s more likely to succeed.