The way you structure the business can impact everything from the taxes you pay to your legal standing. It’s important to structure the business in the way that creates the most benefit for owners and successors. There are always trade-offs but there are also many ways to customize details so you can get the best situation for your circumstances.
And just because your business structure is a sole proprietorship now, doesn’t mean you have to keep it that way. The more time you have between now and the date when ownership is fully transferred, the more flexibility you have to restructure your business.
Advisors that can help you make decisions on your business structure are legal advisors, management advisors, and accountants.
If you haven’t already brought advisors into this discussion, do that now. They can provide some quick advice that will make your life easier.