Change of Business Entity
The process of changing from one type of entity — for example, changing from LLC to S Corp or vice-versa, is called Entity Conversion.
Companies can change their legal format for different reasons. An LLC may want to convert to a C Corporation to make easier the incorporation of new shareholders, investors or for tax purposes. A Corporation can convert to a Limited Liability Company (LLC) to take advantage of the pass through feature allowed to an LLC.
As defined by some states, conversion means the continuance of an entity into another entity. The “converting entity” is the entity existing before a conversion takes place. Meanwhile the “converted entity” is the entity resulting from a conversion.
Regardless of the reasons to convert an entity, ActiveFilings.com can assist you with the complex process that usually involves the preparation of:
1) Plan of Conversion
2) Certificate of Conversion and
3) Articles of formation for the converted entity.
Entity Conversion is normally applicable to domestic entities, meaning, companies changing their structures in the same state. In some cases, the term “Entity Conversion” is also related to changes in the state of organization. In this case, a company formed in State A, wishes to move to State B under the same or different legal form. Although the most appropriate name for this change is “Domestication” some jurisdictions refer to it as “Conversion of State of Formation”.
Conversion of a foreign corporation or LLC into a domestic corporation or LLC, also called Domestication
Conversion of State of formation, also called Domestication;
Domestication with Conversion: moving from one state to another and changing the original type of entity;
Merging a foreign entity with a domestic entity and terminating the existence of the foreign one;
Foreign Qualification, expanding from one state to another.
At ActiveFilings we have successfully assisted our clients in converting their entities since 2001. Call or email us today to request a quotation.