Convert LLC to C-Corp: Gaming Connecticut (2026) | Lovie

As your Connecticut gaming LLC gains traction, especially with esports sponsorships or indie game sales, converting to a C-Corp might be the right strategic move for 2026. A C-Corp structure can unlock significant advantages, including attracting investors and optimizing your tax strategy. We cover this in depth in our resource on the Connecticut incorporation process. This guide outlines the key considerations and steps for converting your gaming LLC to a C-Corp in Connecticut.

When to Convert

• Seeking Venture Capital Funding: Venture capitalists typically prefer investing in C-Corps due to their established corporate structure and equity options, crucial for scaling your gaming studio.
• Planning an IPO or Acquisition: C-Corps are the standard entity type for companies planning to go public or be acquired, streamlining the due diligence process.
• Offering Stock Options to Employees: C-Corps are designed for issuing stock options, a powerful tool for attracting and retaining top talent in the competitive gaming industry.
• Optimizing Tax Strategy for Growth: While LLCs offer pass-through taxation, C-Corps can offer more strategic tax planning opportunities as your profits increase, especially with Connecticut's corporate tax rate of 7.5%.
• Expanding Internationally: C-Corps are often viewed more favorably by international partners and investors, simplifying global expansion for your gaming business.

Conversion Steps

1. Assess Your Current LLC Structure: Review your Connecticut LLC's operating agreement, member agreements, and financial standing to understand the implications of conversion. Consider any existing contracts or intellectual property agreements.
2. Develop a Conversion Plan: Outline the specific steps for converting your LLC to a C-Corp, including the timeline, legal requirements, and financial implications. This plan should address the transfer of assets and liabilities.
3. File Articles of Incorporation with the Connecticut Secretary of the State: Submit the necessary documents to officially form your C-Corp in Connecticut. This includes the Articles of Incorporation and paying the state filing fee, which is $250 as of 2024 (verify for 2026).
4. Obtain an EIN from the IRS: Apply for a new Employer Identification Number (EIN) from the IRS, as your LLC's EIN will no longer be valid. This is essential for tax purposes and opening a corporate bank account.
5. Transfer Assets and Liabilities: Officially transfer all assets, liabilities, and contracts from your LLC to the newly formed C-Corp. This includes updating bank accounts, licenses, and permits.
6. Adopt Bylaws and Elect Directors: Create corporate bylaws that govern the operations of your C-Corp. Elect a board of directors who will oversee the company's management.
7. Notify Relevant Parties: Inform all relevant parties, including clients, vendors, and regulatory agencies, about the conversion of your business entity.

Start your formation with Lovie — $499 one-time, state filing fee included.