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Clients often ask “Can I change the entity type of my Delaware company after it has already been formed?” The answer is yes. Sometimes, in the course of business, things change and for whatever reason it may be necessary to change your Delaware LLC to a corporation or your Delaware corporation to an LLC. It could be because your accountant advised you to, because a potential partner advised you to, or because maybe you would like to issue shares of stock but cannot do so with your LLC. Whatever the reason, Harvard Business Services, Inc. would be happy to help you change your business entity from one type to another.
This process is called a conversion. Our service includes the document preparation, the Delaware State fees, a new corporate kit as well as a new corporate seal. The corporate kit and seal will contain your new company name. For example, when converting ABC Realty, LLC to a corporation, the ending will change. The popular choice for a corporation is Inc., so the new company name would likely be ABC Realty, Inc. Some clients want to completely alter the name when filing this conversion; this is also acceptable. Harvard Busines Services, Inc. will check the new name before filing the conversion and as long as it is available with Delaware Division of Corporations, we are able to change the name at the same time of the conversion.
When you file a conversion, your company will maintain its original birth date. This may be important to some clients if their company has built up many years of history. Other people may opt to just form a brand new company with the entity type they prefer, and close the previous company. The latter is sometimes less expensive and simpler, although this may be different for every client. Keep in mind that the Franchise Tax must be paid for both entity types in the year the conversion is filed. After that year, clients will only pay the Franchise Tax of the new entity type. After the conversion process is initiated, you will receive documents for signature via fax or email. Once the documents are signed and returned to Harvard Business Services, Inc., it takes approximately three to five business days for the filing to be complete. The approved documents will be delivered to you by email.
We are happy to answer any additional questions about your options and the conversion process. Please call 1-800-345-2677 or email firstname.lastname@example.org.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.
There are 2 comments left for Convert a Delaware LLC to a Corporation or Vice VersaAmr Yehia said: Sunday, February 18, 2018
Hi Dear, I have just formed an LLC in Delaware just 6 days ago ... My partners and me are not US Residents. Can I just convert it to C Corporation in the very first instead of doing it lately. Also, does meetings of C- Corporations requires our visits to US in the First Year or not .. Finally, can you advise how much it would cost to convert the LLC To C-Corporation ? Thank you ... AmrHBS Staff replied: Monday, February 19, 2018
The LLC has the ability to be taxed with the C status; typically clients work with their tax professional to change their tax classification from a single member LLC or a partnership to the C status.
If your intention is to have a corporation that has shares of stock, instead of an LLC, please call us at 800 345 2677 Ext 6900 to speak with a specialist.Dmytro said: Thursday, February 8, 2018
Dear sirs, We have LLC in CA with one non-resident owner. We would like to convert this company into the C Corp in DE with three non-resident shareholders, change the field of operations and the name of the company. Can you manage this and what will be the price? Is there an option to process this without coming to US?HBS Staff replied: Thursday, February 8, 2018
Hello. We can only do the filing here in Delaware to change the entity from a CA LLC to a Delaware LLC and then make the entity a corporation. We cannot help with any of the filings in CA, to terminate the entity, unfortunately. Please feel free to give us a call or Live Chat with us via our homepage for pricing and any questions you may have. 1-800-345-2677