QUESTION

Can I change my business structure for business purposes while a a suit is pending?

Asked on May 31st, 2012 on Personal Injury - Texas
More details to this question:
I am not changing business structure to avoid judgment. I'm changing business structure because it is the best thing for my business. Can I do this?
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2 ANSWERS

Car/Auto Accident Attorney serving Hacienda Heights, CA at Gary Lee Platt
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Depending on what kind of change you are thinking of making to your business, I don't believe a lawsuit automatically prevents you from making the change, HOWEVER, if you are a partner in a partnership (for example) and wish to change your partnership into a corporation, the change will have taken place AFTER whatever circumstances led to the lawsuit being filed, so you will still be considered a partner for the purposes of the lawsuit. In other words, you can gain whatever benefit can be gained from changing the nature of your business, but NOT retroactively.
Answered on Jul 06th, 2012 at 12:54 AM

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Unless there is a court order restricting the transfer of your property or assets, you are permitted to do anything you would want to with your business, including reorganizing it.
Answered on Jul 05th, 2012 at 5:02 PM

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