How do I convert my LLC to a C-Corp?

There are three ways to convert an LLC to a C-Corp: statutory conversion (file a Certificate of Conversion with the state, available in about 35 states), statutory merger (merge the LLC into a new corporation), or asset transfer (form a new corp, transfer all LLC assets, then dissolve the LLC). Statutory conversion is simplest and typically tax-free.

Statutory conversion process (preferred method): (1) Adopt a plan of conversion approved by LLC members, (2) File a Certificate of Conversion + Articles of Incorporation with the state, (3) Pay the filing fee ($50-$200), (4) The LLC automatically becomes a corporation — same EIN, same contracts, same bank accounts. Tax treatment: if structured correctly, the conversion is a tax-free reorganization under IRC Section 351. However, you should consult a tax advisor because the conversion can trigger taxable events if the LLC has appreciated assets, outstanding debt exceeding basis, or if members receive disproportionate shares. Best timing: convert before your first funding round, as investors will require a Delaware C-Corp.