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Lets say, I incorporate as LLC, and decide down the road to take investment, can it be done? Can a LLC be changed to C-Corp, later?
by sathishmanohar 14y ago
Lets say, I incorporate as LLC, and decide down the road to take investment, can it be done? Can a LLC be changed to C-Corp, later?
- X-Istence 14y agoYes, you can always convert one business type to another. One thing I have noticed though is that depending on the state this can be a royal pain in the rear.
- jmonegro 14y agoYou'd just need to create a new C Corp and either transfer the IP or acquire the LLC.
- rprasad 14y agoYes. You can change the tax form of a LLLC by making what is called a "check the box" election on Form 8858. This will switch the LLC from a partnership (if it has multiple owners) or disregarded entity (if it has only 1 owner) to a corporation. In effect, it will be treated as if the LLC distributed all of its assets to its partners, who then contribute those assets to a new corporation with the same name as the LLC. You may recognize income on the conversion, it depends.