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

As your California dropshipping LLC gains traction, converting to a C-Corp might be the key to unlocking significant growth. This guide outlines when and how to make the switch, navigate the complexities of California regulations, and position your business for long-term success. Let Lovie handle the complexities of formation while you focus on scaling your dropshipping empire.

When to Convert

Conversion Steps

  1. Assess Eligibility and Plan: Ensure your LLC is in good standing with the California Secretary of State. Develop a comprehensive business plan outlining the reasons for conversion and projected financial benefits.
  2. Prepare Articles of Incorporation: Draft the Articles of Incorporation for your C-Corp, specifying the corporate name, registered agent, number of authorized shares, and the purpose of the corporation. In California, the filing fee is $100.
  3. File Articles of Incorporation: Submit the Articles of Incorporation to the California Secretary of State. You can file online, by mail, or in person. Expedited processing is available for an additional fee of $750, reducing processing time to the same day.
  4. 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. This can be done online and is free.
  5. Transfer Assets and Liabilities: Transfer all assets and liabilities from your LLC to the newly formed C-Corp. This includes bank accounts, inventory (if any), contracts, and intellectual property.
  6. Adopt Bylaws and Elect Directors: Create corporate bylaws to govern the internal operations of the C-Corp. Hold an initial board meeting to elect directors and appoint officers (e.g., CEO, CFO, Secretary).
  7. File Statement of Information: Within 90 days of incorporation, file an Initial Statement of Information with the California Secretary of State, listing the names and addresses of the corporation's officers and directors. The filing fee is $25.

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