An opportunity to change
When the nature of your business changes, it may present a chance for you to
change from one business entity type to another:
- Changing a
corporation into a limited liability company (LLC). For example, a C corporation with an owner that is not a US citizen wish to become an LLC to
take advantage of pass-through taxation. (Because the C corporation has an
owner that is not a US
citizen, it cannot become an S corporation.)
- Changing an LLC to a corporation. For example, the owners of an LLC may wish to
seek venture capital funding and therefore wish to become a corporation.
Why it’s important
Converting a company from one business type to
another requires the business owner to follow the procedure required by the
company’s state of incorporation. All tax implications should also be weighed
and those obligations satisfied. For
taxation questions, it is best to seek the advice of an accountant or tax
Features & Benefits
The BizFilings conversion service helps you by:
- Determining the appropriate process for conversion in the state where your company was formed.
- Obtaining and preparing appropriate state forms.
- Submitting your completed conversion forms to appropriate state agencies.
- Notifying you when the process is complete and shipping any state-approved documents to you.
As a company’s needs change, so can its business structure. A company is not “locked into” its business type for life. Business Type Comparison Table
Keep in Mind
As your business type changes, so do your annual state requirements. In the case of converting from an LLC to a corporation, you will now be subject to ongoing formalities, such as holding and properly documenting annual meetings of directors and shareholders. You can learn about the requirements for your state of incorporation in our State Guides. State Guides