Although there are various benefits of operating your business as an LLC or S corp, members and shareholders may wish to convert to a C corp. Here’s a quick guide to converting an LLC or S corp to a C corp.
Converting an LLC
There is not one LLC tax status or one conversion method. First, you must understand your LLC’s tax status. Next, you’ll need to choose from one of three types of conversion depending on your state laws. Here are your options:
Regardless of the method you choose to convert your LLC to C corp, you will need to make sure your new corporation is set up correctly. This includes getting a new Employment Identification Number (EIN), adopting corporate bylaws and issuing stock certificates. If you want to convert from an LLC to S corp, the process is similar.
Converting an S Corp
If you have an S corp but want to operate as a C corp, you have two options:
Learn more about the benefits of starting a C corporation with the help of GovDocFiling.