Fidelity Investments has changed its organizational structure to a limited liability company, or LLC, in an apparent move to reduce its tax burden, Bloomberg reports.

FMR, Fidelity’s parent, decided on the change earlier this year. An October SEC filing made the move public. The move could bring tax advantages for the family of Chairman Edward Johnson III and other FMR shareholders.

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 IRS considers the change to be a sale of the company.

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