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

As your Delaware real estate LLC grows in 2026, converting to a C-Corp might become strategically advantageous. This guide outlines the process, tax implications, and key considerations for real estate businesses making the switch in Delaware. Lovie can help you navigate this complex conversion seamlessly.

When to Convert

Conversion Steps

  1. Assess Conversion Readiness: Evaluate your LLC's financial performance, growth projections, and long-term goals to determine if a C-Corp conversion aligns with your strategy.
  2. Develop a Conversion Plan: Outline the legal, financial, and operational aspects of the conversion, including asset transfer, equity restructuring, and tax planning.
  3. File Certificate of Incorporation: File the Certificate of Incorporation with the Delaware Division of Corporations, specifying the C-Corp's name, registered agent, authorized shares, and other required information. The filing fee is $89 as of 2024.
  4. Obtain an EIN: Apply for a new Employer Identification Number (EIN) from the IRS for your C-Corp. This is essential for tax reporting and banking purposes. Lovie can automate this for you.
  5. Transfer Assets and Liabilities: Transfer all assets (properties, cash, contracts) and liabilities from the LLC to the newly formed C-Corp. Ensure proper documentation for real estate title transfers to avoid triggering due-on-sale clauses.
  6. Adopt Bylaws and Issue Stock: Create corporate bylaws to govern the C-Corp's operations and issue stock to the LLC members, reflecting their ownership interests in the new entity. Lovie can manage your cap table.
  7. Notify Relevant Parties: Inform all relevant parties (banks, lenders, tenants, vendors) of the conversion and update contracts and agreements to reflect the C-Corp's name and EIN.

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