Converting an LLC to a Corporation in Delaware
Converting a limited liability company (LLC) to a corporation in Delaware is fairly straightforward thanks to a process called statutory conversion. While not all states offer statutory conversion, Delaware does.
What is statutory conversion?
Statutory conversion is a legal process that allows a company to transition from one business entity to another with state assistance. Statutory conversion can also help businesses move from one state to another.
Can I dissolve my LLC and form a new DE Inc?
Sure. You can dissolve your Delaware LLC and start a new corporation from scratch—BUT, it’s a hassle. Converting one business entity to another allows you to keep some aspects of your business intact while rearranging others and adding new components (like stock shares, if you’re converting an LLC to a corporation). Plus, you won’t have to pay the extra fees associated with dissolution.
How do I convert my DE LLC to a corporation?
To convert your Delaware LLC to a corporation, you’ll need to follow these basic steps:
- Create a plan of conversion – Fundamentally restructuring your business involves a lot of moving parts. You’ll first want to make sure that all LLC members agree to the conversion, then make sure everyone’s on the same page about what’s changing and how.
- File a Delaware Certificate of Conversion -Delaware offers different forms for different entity types. To convert your business from an LLC to a corporation, you’ll use this Certificate of Conversion form.
- File a Delaware Certificate of Incorporation – In Delaware, you have to file a Certificate of Incorporation along with your Certificate of Conversion. Note that there’s one form for converting to a stock corporation (included in the Certificate of Conversion form), and another Certificate of Incorporation for a Nonstock Corporation.
How much does it cost to convert a DE LLC to an Inc?
It costs $194 to file the standard one-page Certificate of Conversion, and $89 for the Certificate of Incorporation. Any additional pages to either document will run you $9/page, and certified copies are an extra $100. At minimum, you’ll be paying $283.
