How To Change My LLC to a Corporation
You can change your business from an LLC to corporation, provided all partners in the LLC agree to the change and vote in its favour. You should discuss the idea quite well before taking a practical step. Also, read Articles of Organisation, which should guide you to give notice to all members of the LLC, expected documentation and other issues. At a meeting with all the members, table your idea and all pros and cons you have thought about in the process of changing the business to corporation, its benefits and disadvantages. Once all members agree to the idea and vote in its favour, go for it. Sometimes you might need help of a professional advisor, but you can do the process by yourself if follow all rules of organisation or operation agreement. The more you do your home work, the more you will be able to do the job easily. So it is better to study all relevant information, and plan well in advance all stages of the process.
Instructions
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1
Determine Tax Obligations
A corporation has a different tax structure, and is more taxable than an LLC. So, study and discuss all tax obligations and complications beforehand. Also, keep all tax obligations in front of all members, as you will need to change the tax structure and documentation by changing to corporation. -
2
Dissolution of LLC
Dissolution of LLC is your next step. Before dissolving the LLC, you will need to keep the proposal or plan in front of all partners. They should discuss and contribute towards the idea before giving a final approval. If all principal members agree, you should dissolve the LLC as per the rules explained in the operating agreement. If you cannot find a proper guidance in your operating agreement that how to dissolve the LLC, you should state rules and regulations to dissolve it. Try to stay within laws to avoid any legal complications later. -
3
Get Corporation Registered
After you have dissolved the LLC and are ready with documentation of corporation, get it registered with the relevant body. Sometimes the corporations are run by Securities and Exchange Commission or in some countries there are separate registration authorities. Also, fulfill other formalities as per legal requirement. For example, you might have to advertise in media about change of the LLC to corporation. Do all the basic work, as you can be asked of all such documents at the time of registration. -
4
Transfer of License
Getting transferred licenses of your LLC is another legal aspect of your operation necessary to be dealt with. You should contact all permitting agencies to inquire about the requirements and process of getting your licenses and permits transferred.
