Colorado Springs, CO asked in Business Formation and Business Law for Colorado

Q: I need to change my 10 mo. old business from a general partnership to a sole proprietorship. Which way should I do this?

The partnership owes no back taxes. I personally bought all the equipment, supplies. My partner will become my employee. The split/change is amicable, with no disagreements to ownership, naming, clients, or anything else, and we will still be working as usual. I don't know whether to dissolve then refile or go through a change of business model.

1 Lawyer Answer

A: Sell the partnership (assets and membership/profit interests) to you as an individual for whatever price is deemed fair by all, But consider an LLC, which protects personal assets, as an alternative to a sole proprietorship.

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