How to Convert Your Co-Founder Pair LLC to C-Corp in Delaware (2026)
Converting your co-founder pair LLC to a C-Corp in Delaware by 2026 can be a strategic move as your business evolves. Delaware is the preferred state for incorporation, especially for C-Corps seeking venture capital, due to its established legal system and business-friendly environment. This guide outlines the process, tax implications, and equity restructuring considerations for a smooth transition. Let Lovie streamline your Delaware C-Corp formation with AI-powered precision, handling everything from filings to compliance.
When to Convert
Conversion Steps
- LLC Member Approval: The LLC members (co-founders) must formally approve the conversion to a C-Corp. This typically requires a unanimous vote, but review your LLC operating agreement for specific requirements.
- Name Availability Check: Ensure your desired C-Corp name is available in Delaware. You can check name availability on the Delaware Division of Corporations website.
- Draft Certificate of Incorporation: Prepare the Certificate of Incorporation for your C-Corp. This document outlines the corporation's name, purpose, registered agent, authorized shares, and other key details. Lovie can draft this for you, ensuring compliance with Delaware law.
- File Certificate of Incorporation: File the Certificate of Incorporation with the Delaware Division of Corporations. The standard filing fee is $89, but expedited options are available for faster processing.
- Obtain EIN from IRS: Apply for an Employer Identification Number (EIN) from the IRS. This is required for tax purposes and to open a corporate bank account. Lovie can handle the EIN application process seamlessly.
- Adopt Bylaws and Appoint Directors: Create corporate bylaws that govern the internal operations of the C-Corp. Appoint the initial directors who will oversee the company's management. For a co-founder pair, this will likely be yourselves.
- Transfer Assets and Liabilities: Formally transfer all assets and liabilities from the LLC to the newly formed C-Corp. This includes bank accounts, contracts, and intellectual property. Ensure proper documentation for the transfer.
Start your formation with Lovie — $20/month, everything included.