How to Convert Your Agency LLC to C-Corp in Delaware (2026)
As your Delaware-based agency LLC grows, converting to a C-Corp might become strategically advantageous. This guide outlines the process for 2026, covering key considerations, steps, and potential pitfalls. Lovie can help automate and streamline this complex conversion, ensuring compliance and accuracy.
When to Convert
Conversion Steps
- Assess Conversion Readiness: Evaluate your agency's financial health, growth trajectory, and long-term goals to determine if a C-Corp conversion is truly the right move. Consult with financial and legal advisors.
- Develop a Conversion Plan: Outline the specific steps involved in the conversion, including legal, financial, and operational considerations. Define roles and responsibilities.
- File Certificate of Incorporation in Delaware: Prepare and file the Certificate of Incorporation with the Delaware Secretary of State. This document establishes your C-Corp's legal existence. The filing fee is $89 as of 2024, but may change by 2026. Lovie can handle this filing automatically.
- Obtain an EIN from the IRS: Apply for an Employer Identification Number (EIN) from the IRS. This is your C-Corp's tax ID number. Lovie can obtain this automatically upon formation.
- Transfer Assets and Liabilities: Transfer all assets and liabilities from your LLC to the newly formed C-Corp. This includes bank accounts, contracts, and intellectual property.
- Adopt Bylaws and Issue Stock: Create corporate bylaws outlining the rules and regulations for governing the C-Corp. Issue stock to the owners, reflecting their ownership percentages.
- Notify Relevant Parties: Inform clients, vendors, and other stakeholders of the conversion. Update your agency's legal name and tax information with all relevant entities.
Start your formation with Lovie — $20/month, everything included.