We facilitate a smooth transition
Whether it’s an LLC, a corporation, or another business type, each one has its own set of restrictions and opportunities. For example, a corporation can garner venture capital more readily than an LLC. Although the requirements vary, most states allow businesses to convert from one to another. Rest assured, CT Corporation’s compliance experts know the ins and outs of every state's conversion process.
We consult with you throughout the process
1. Confirm your choices and gather all required information
2. Clarify the conversion process for your state
3. Complete and file the proper forms and promptly submitting them to the appropriate state agencies
4. Monitor the process and delivering your state-approved documents at the earliest opportunity
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Does converting a company have tax implications?Yes, there may be significant tax consequences, both at the time of conversion and going forward. For example, if you convert a corporation to an LLC, both the corporation and its shareholders may be taxed. It’s best to consult an accountant or tax advisor for advice on your particular situation.
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Is an amendment different from a conversion?Yes, filing to convert your corporation or LLC to another business type (conversion) is a different process from changing the number, par value, or type of authorized shares, or the number of directors (amendment).
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Do I have to file for a conversion to change to or from an S Corporation?No, an S-Corporation is a special tax classification. Making an S Corporation election—or revoking one—requires a filing with the IRS, not the state. We’re available assist you with making an S Corporation election, though we recommend soliciting guidance from a tax professional as well.