Convert LLC to C-Corp: Mobile Developer Connecticut

As your mobile app development business in Connecticut grows, converting from an LLC to a C-Corp might become necessary. This guide outlines the process for 2026, covering key considerations and steps to ensure a smooth transition. We cover this in depth in our resource on the Connecticut incorporation process. Lovie can help automate this complex process, ensuring compliance and accuracy every step of the way.

When to Convert

• Seeking Venture Capital Funding: Most venture capital firms prefer investing in C-Corps due to their stock structure and potential for future acquisitions. If you plan to seek VC funding for your mobile app startup, converting to a C-Corp is essential.
• Planning for an IPO: C-Corps are the standard corporate structure for companies going public. If you envision an IPO for your mobile development business in the future, you'll need to convert to a C-Corp.
• Attracting and Retaining Top Talent: C-Corps can offer stock options and other equity-based compensation packages, making it easier to attract and retain highly skilled mobile developers and other key personnel.
• Optimizing for Tax Advantages: While LLCs offer pass-through taxation, C-Corps may be more advantageous from a tax perspective if you plan to reinvest profits back into the business. Connecticut's 7.5% corporate tax rate should be considered. Consult with a tax advisor to determine the best structure for your situation.
• Reducing Personal Liability: While LLCs offer liability protection, C-Corps provide an additional layer of separation between your personal assets and business debts. This can be crucial as your mobile app business scales and faces increased risk.

Conversion Steps

1. Develop a Conversion Plan: Outline the reasons for conversion, assess the impact on your business, and create a timeline for the process. Consider consulting with legal and tax professionals.
2. Approve the Conversion: Hold a formal meeting of LLC members to approve the conversion to a C-Corp. Document the decision in meeting minutes.
3. File Articles of Incorporation: File Articles of Incorporation with the Connecticut Secretary of the State to create your C-Corp. This requires providing information about your corporation's name, registered agent, and authorized shares. The filing fee is $250 as of 2024, but this may change by 2026.
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 is free to obtain.
5. Transfer Assets and Liabilities: Transfer all assets and liabilities from your LLC to the newly formed C-Corp. This includes bank accounts, contracts, and intellectual property related to your mobile apps. Ensure proper documentation for all transfers.
6. Notify Relevant Parties: Inform all relevant parties, including clients, vendors, and financial institutions, about the conversion and the change in business entity. Update your Apple and Google developer accounts.
7. Comply with Ongoing Requirements: Ensure your C-Corp complies with all ongoing requirements, including filing annual reports with the Connecticut Secretary of the State ($150 filing fee as of 2024), paying business entity tax ($250), and adhering to all applicable state and federal tax regulations. Lovie can automate these compliance tasks.

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