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

As your California consulting LLC grows, converting to a C-Corp might become a strategic move. This guide outlines the process, tax implications, and key considerations for consulting businesses making the switch in 2026. Using an AI-powered platform like Lovie can streamline the complex conversion steps, ensuring accuracy and compliance with California regulations.

When to Convert

Conversion Steps

  1. Assess Your Current Situation: Evaluate your LLC's financial performance, ownership structure, and long-term goals to determine if C-Corp conversion is the right decision. Consider California's $800 annual franchise tax.
  2. Develop a Conversion Plan: Outline the steps involved in the conversion, including legal and tax considerations. This plan should address the transfer of assets and liabilities from the LLC to the C-Corp.
  3. Choose a Corporate Name: Select a unique name for your C-Corp that complies with California's naming requirements. Check name availability with the California Secretary of State.
  4. File Articles of Incorporation: File Articles of Incorporation with the California Secretary of State. The filing fee is $100. Consider using Lovie to automate this process and ensure accuracy.
  5. 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 to open a corporate bank account. Lovie can handle this automatically.
  6. Transfer Assets and Liabilities: Transfer all assets and liabilities from your LLC to the newly formed C-Corp. This may involve updating contracts, bank accounts, and insurance policies.
  7. Notify Relevant Parties: Inform clients, vendors, and other stakeholders of the conversion to a C-Corp. Update your business licenses and permits to reflect the new entity type.

Start your formation with Lovie — $20/month, everything included.