How to transition business structure from a trust to a company?

[kirsty73]

Hi Team
We are raising capital for the business.  The business was initially set up as a trust and to be able to take on investors we have had to change the structure of the company from a trust to a company, though we will be trading under the same name of Nature's Help.  Our change of over date is the 1st of July 2023.

What is the best way for us to do this,  and what details do we need to provide so payments can go into the new bank account as of the 1st of July 2023.

Thank you
Kirsty Strowger  

[Moeed]

Hello @kirsty73 ,

Congratulations on the transition from a trust structure to a company! Here's a step-by-step guide to help you navigate the process and ensure a smooth transition for your business and payments:

1. Register your new company: If you haven't already done so, you'll need to register your new company under the desired name, "Nature's Help." Check the requirements and procedures for company registration in your jurisdiction, which may involve submitting necessary documentation and paying applicable fees.

2. Obtain a new bank account: Open a new bank account under the name of your newly registered company, "Nature's Help." Contact your preferred bank to inquire about their account opening procedures, required documentation, and any specific requirements for business accounts. Provide all the necessary details and complete the process to have the new bank account ready by the 1st of July 2023.

3. Update payment details with stakeholders: Notify all relevant stakeholders about the upcoming change in your company's structure and payment information. This includes investors, customers, suppliers, and any other parties involved in financial transactions with your business.

4. Provide updated banking information: Furnish the new bank account details to all stakeholders who make payments to your business. This information typically includes the account name, account number, routing number (if applicable), and any additional instructions required for electronic transfers. Clearly communicate that payments should be directed to the new bank account starting from the 1st of July 2023.

5. Update payment settings in your systems: If you have online platforms, such as Shopify, where payments are processed, make sure to update the payment settings with the new banking information. This ensures that funds are directed to the correct account. Check all relevant payment gateways, plugins, or apps you utilize to update the banking details accordingly.

6. Inform payment processors and gateways: If you use third-party payment processors or gateways to facilitate transactions, contact them to update your account details. This may involve providing new bank account information, verifying your company's updated legal structure, and completing any necessary forms or agreements.

7. Maintain clear communication: Throughout the transition process, maintain clear and timely communication with all stakeholders. Inform them of key dates, changes, and actions required to ensure a seamless transition of payments into the new bank account.

By following these steps and providing the necessary information and updates, you can ensure that payments are directed to your new bank account as of the 1st of July 2023, allowing for a smooth transition from the trust structure to the new company structure.

It's recommended to consult with a legal professional or business advisor to ensure compliance with any specific legal and financial requirements in your jurisdiction during this transition.

Best of luck with your fundraising efforts and the future success of Nature's Help!

If I managed to help you then, don't forget to Like it and Mark it as Solution!

Best Regards,
Moeed

[Kimi]

Hi, @kirsty73.

If you're using Shopify Payments as your payment provider, you'll need to make sure that the bank account information on file is up-to-date in order for the system to be able to send your payouts. We have instructions in this guide that you can follow to update your Shopify Payments bank account information.

In regards to your new business information however, your store's details (for tax purposes) are stored within your Shopify Payments account. This information isn't directly accessible by merchants via the Shopify admin, due to security reasons. So to update it, we'll need the help of our Shopify Payments team, which currently only operates via email.

So from here, if you'd like us to update your business information for your Shopify Payments account, please get in touch with our live support team via the Help Center here. Once logged in on the Help Center, select a topic that best fits your query or situation. From there, you'll be taken to a page with a list of relevant support articles, and you can scroll to the bottom of that page to select your preferred contact method with our team. Our live support team will be able to further assist in escalating your case to the necessary Shopify Payments team from there.