How to Convert Your Designer LLC to C-Corp in Delaware (2026)

As your Delaware-based design studio grows, converting your LLC to a C-Corp might become strategically advantageous. This guide outlines the process for designers in 2026, covering key steps, tax implications, and equity restructuring considerations specific to the design industry. Lovie can help you navigate this complex process seamlessly, ensuring compliance and optimizing your corporate structure.

When to Convert

Conversion Steps

Assess Your Current Structure: Evaluate your LLC's operating agreement, assets, liabilities, and equity structure. Determine if a conversion or a statutory merger is the better approach for your design studio.
Develop a Conversion Plan: Create a detailed plan outlining the steps involved in the conversion, including the transfer of assets, liabilities, and contracts. Address any design-specific IP considerations like copyright assignments.
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. Ensure compliance with Delaware law.
File Certificate of Conversion: File a Certificate of Conversion with the Delaware Secretary of State, along with the Certificate of Incorporation for the new C-Corp. The filing fee for a C-Corp is $89 as of 2024, but this may change by 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 payroll.
Transfer Assets and Liabilities: Transfer all assets and liabilities from the LLC to the newly formed C-Corp. This includes bank accounts, contracts, intellectual property (including design copyrights), and equipment.
Update Licenses and Permits: Update all relevant licenses and permits to reflect the new C-Corp entity name and structure. This is especially important for design-related licenses or permits at the local or state level.

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