California Entity Conversion
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In California, you can change your entity type from one to another through the process of conversion. A California LLC can convert to a California corporation, or vice versa. To do so, you need to submit the proper filings to the Secretary of State’s office and pay the appropriate fee.
A California entity conversion is a pretty straightforward process, but it should not be done lightly. There are significant differences between LLCs and corporations, and you should understand the differences fully before committing to a conversion. Specifically, you should consider the tax implications of conversion and whether or not a new entity type will meet your business needs.
How to Convert a California LLC or Corporation
Whether you are converting your California LLC into a corporation or converting your California corporation into a limited liability company, the process is basically the same. The forms are different, but the submission and fees are the same.
|Conversion Filing||Filing Fee|
|LLC to Corporation||$150|
|Corporation to LLC||$150|
Choose a Name
You will need to select a name for your new entity. The new name must conform to California state law. It is useful to first search for your new name by conducting a business entity name search. This will allow you to see if your name is currently available. You cannot register an entity name that is already in use by another LLC or corporation.
Fill Out the Conversion Articles
California makes conversion fairly simple. You will need to file new Articles (same as you did when you first formed your company). These new Articles will have conversion language and space to include information about your newly converted business.
You can click on the links above to see the document specific to the California entity conversion you are considering.
This is the only document necessary for conversion.
Submit Conversion Articles
Once your forms are complete, you can submit them to the California Secretary of State. You must mail or hand-deliver the document. You must include the $150 processing fee.
Filings are usually processed in five business days.
File Statement of Information (For New Corps Only)
If you are converting from an LLC to a corporation, you will need to file a Statement of Information within 90 days of submitting your conversion document. Unlike LLCs, which file every two years, California corporations must submit a Statement of Information every year.
Things To Remember
- When filing a California entity conversion, don’t forget to include the Mail Submission Cover Sheet. The Secretary of State uses the information on this form to communicate with your company.
- Checks and money orders should be made payable to: Secretary of State
- In-person delivery requires an additional $15 processing fee