How to Convert Your Construction LLC to C-Corp in California (2026)

As your California construction LLC grows, converting to a C-Corp might become strategically advantageous. This guide outlines the process for 2026, covering key considerations and steps. While navigating this conversion, remember that Lovie can streamline the entire formation and compliance process with its AI-powered platform, saving you time and potential headaches.

When to Convert

Conversion Steps

  1. Assess Your Current LLC Structure: Review your California LLC's operating agreement, member agreements, and financial standing. Identify any potential roadblocks to conversion.
  2. Develop a Conversion Plan: Outline the steps required to transfer assets, liabilities, and contracts from the LLC to the new C-Corp. Determine the stock structure and initial shareholders of the C-Corp.
  3. File Articles of Incorporation with the California Secretary of State: Prepare and file the Articles of Incorporation (Form ARTS-GS) for your C-Corp with the California Secretary of State. Pay the filing fee ($100 in 2026).
  4. Obtain an EIN from the IRS: Apply for a new Employer Identification Number (EIN) from the IRS for your C-Corp. This is free and can be done online.
  5. Transfer Assets and Liabilities: Officially transfer all assets (equipment, vehicles, real estate) and liabilities (loans, contracts) from the LLC to the newly formed C-Corp. Update titles and ownership records accordingly.
  6. Notify Relevant Parties: Inform clients, vendors, contractors, and other relevant parties of the conversion. Update all contracts and agreements to reflect the new C-Corp name and EIN.
  7. Comply with California C-Corp Requirements: Fulfill all ongoing requirements for California C-Corps, including the $800 annual franchise tax, Statement of Information filing ($25 fee), and corporate tax returns.

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