How to Convert Your Accounting LLC to C-Corp in District of Columbia (2026)
For accounting professionals in the District of Columbia, transitioning from an LLC to a C-corp can unlock new opportunities for growth and tax optimization. This guide outlines the key considerations and steps for a successful conversion in 2026. Let Lovie handle the complexities while you focus on your clients.
When to Convert
Conversion Steps
- Assess Your Current Situation: Evaluate your accounting firm's current financial standing, ownership structure, and long-term goals to determine if a C-corp conversion is the right move. Consult with a tax advisor familiar with District of Columbia regulations.
- Develop a Conversion Plan: Outline a detailed plan that addresses all aspects of the conversion, including legal, financial, and operational considerations. This plan should include a timeline and budget.
- Adopt a Plan of Conversion: The LLC members must formally adopt a plan of conversion, outlining the terms and conditions of the conversion to a C-corp. This usually requires a vote or unanimous consent, depending on your LLC operating agreement.
- File Articles of Incorporation: File Articles of Incorporation with the District of Columbia Department of Licensing and Consumer Affairs (DLCA) to officially create the C-corp. The filing fee is $220 as of 2024, but confirm the current fee schedule for 2026.
- Obtain an EIN: Apply for a new Employer Identification Number (EIN) from the IRS for your C-corp. This is required for tax purposes and is free to obtain.
- Transfer Assets and Liabilities: Transfer all assets and liabilities from the LLC to the newly formed C-corp. This includes bank accounts, contracts, and any other relevant business holdings.
- Notify Relevant Parties: Inform clients, vendors, and other stakeholders of the conversion. Update all legal documents and contracts to reflect the new C-corp entity.
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