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In California, you can use a relatively new, simplified procedure that allows you to convert your business from a corporation to an LLC largely by filing a single document with the Secretary of State.
One or more corporations of Delaware can consolidate or merge with one or more limited liability companies in the state of Delaware or elsewhere in the United States. These corporations and limited liability companies can merge into a corporation or can merge into a limited liability company.
The fee to file the Certificate of Conversion is $164.00 for a 1 page document. Please add $9 for each additional page. A Certificate of Incorporation is required to be filed simultaneously with the Certificate of Conversion. Enclosed for your convenience, please find a form for a Stock Certificate of Incorporation.
To convert your Delaware corporation to an LLC, you need to file two documents: the Certificate of Conversion and the Certificate of Formation. The Delaware Secretary of State offers both the LLC conversion formation documents in one pdf, and you can file them together for a total filing fee of $290.
Disadvantages of Converting From a Corporation to an LLC The business is taxed on assets and gains on assets which have appreciated since the business was acquired. The business must pay the tax even if they do not actually receive the money.
In California, you can use a relatively new, simplified procedure that allows you to convert your business from a corporation to an LLC largely by filing a single document with the Secretary of State.
To convert your Delaware corporation to an LLC, you need to file two documents: the Certificate of Conversion and the Certificate of Formation. The Delaware Secretary of State offers both the LLC conversion formation documents in one pdf, and you can file them together for a total filing fee of $290.
Delaware Law allows for the conversion of one entity type to another entity type.