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

As your software development LLC in Connecticut grows, converting to a C-Corp might become advantageous. This guide outlines the process, considerations, and implications for software developers making the switch in 2026. From understanding Connecticut's corporate tax structure to restructuring equity for investors, we'll cover the key aspects. Lovie's AI-powered platform can streamline this complex transition, ensuring compliance and optimizing for your specific needs.

When to Convert

Conversion Steps

  1. Assess Your Business Needs and Goals: Carefully evaluate your long-term business strategy and financial projections. Determine if the benefits of a C-Corp outweigh the costs and complexities for your software development business.
  2. Consult with Legal and Tax Professionals: Engage a Connecticut-licensed attorney and a CPA experienced in business conversions. They can advise on legal compliance, tax implications, and equity restructuring specific to your situation.
  3. 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 document is crucial for legal and tax purposes.
  4. File Articles of Incorporation with the Connecticut Secretary of the State: Prepare and file the Articles of Incorporation for your new C-Corp, including the corporate name, registered agent, and authorized shares. The filing fee is $250 as of 2024, but confirm the current fee for 2026.
  5. Obtain an EIN from the IRS: Apply for a new Employer Identification Number (EIN) for your C-Corp. This is required for tax purposes and to open a corporate bank account. This can be done online through the IRS website.
  6. Transfer Assets and Liabilities: Officially transfer all assets (including intellectual property, contracts, and bank accounts) from the LLC to the newly formed C-Corp. Ensure all legal documentation is properly updated.
  7. Notify Relevant Parties: Inform clients, vendors, and other stakeholders of the conversion. Update all contracts and agreements to reflect the new C-Corp entity.

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