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 advisor.
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.