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

As your Connecticut dropshipping business grows, you might consider converting from an LLC to a C-Corp. This guide outlines the process, tax implications, and key considerations for dropshippers in Connecticut looking to make the switch in 2026. While an LLC offers simplicity, a C-Corp can unlock new opportunities for funding and tax advantages. Lovie's AI-powered platform can help navigate this complex conversion, ensuring compliance and optimizing for your business needs.

When to Convert

Conversion Steps

  1. Assess Your Current LLC Structure: Review your Connecticut LLC's operating agreement, member details, and financial standing. Ensure all records are up-to-date and compliant with Connecticut state regulations.
  2. Draft a Plan of Conversion: Create a formal plan outlining the conversion process, including the transfer of assets and liabilities from the LLC to the C-Corp. This plan should be approved by all LLC members.
  3. File Articles of Incorporation with Connecticut: File the Articles of Incorporation with the Connecticut Secretary of the State, officially creating the C-Corp. The filing fee is $250 as of 2024, but confirm the latest fee schedule for 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 required for tax purposes and is free to obtain.
  5. Transfer Assets and Liabilities: Transfer all assets and liabilities from the LLC to the newly formed C-Corp. This includes bank accounts, inventory (if any), contracts, and debts.
  6. Adopt Bylaws and Elect Directors: Create corporate bylaws to govern the C-Corp's operations and elect a board of directors. These decisions should be documented in corporate minutes.
  7. Notify Relevant Parties: Inform all relevant parties, including suppliers, customers, and financial institutions, of the conversion from LLC to C-Corp.

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