FMR, Fidelity’s parent, decided on the change earlier this year. An October
An FMR spokesperson said the change isn’t a prelude to a sale or float of the company. It is in line with other cost-cutting efforts such as staff reductions, 200 of which the Boston Globe reported have begun this week.
By changing into an LLC, the group may escape federal taxes because LLCs pass on all earnings to their owners. LLC owners usually have to pay a tax of up to 35%.
One downside of the conversion is that it could lead to a large, one-time capital gains levy. That would turn on whether the