How to Convert Your Solo Founder LLC to C-Corp in California (2026)
As a solo founder in California, your LLC structure may have served you well initially. But as you eye funding, scalability, and a more robust corporate image, converting to a C-Corp becomes a strategic move. This guide outlines the 'when' and 'how' of converting your single-member LLC to a C-Corp in California in 2026, ensuring you're set up for future success. Let Lovie handle the complexities while you focus on growing your business.
When to Convert
Conversion Steps
- Assess Your Current LLC Structure: Review your LLC's articles of organization, operating agreement, and any existing contracts to understand your current obligations and assets. Ensure all filings are up-to-date with the California Secretary of State.
- Develop a Conversion Plan: Outline the specific steps for the conversion, including asset transfer, liability assumption, and equity allocation. Consult with legal and tax professionals to optimize the plan for your situation.
- File Articles of Incorporation (Form ARTS-CNV): Prepare and file Articles of Incorporation with the California Secretary of State, including the conversion information (Form ARTS-CNV). The filing fee is $100.
- Obtain an EIN for the C-Corp: Apply for a new Employer Identification Number (EIN) from the IRS for your newly formed C-Corp. This is essential for tax purposes and payroll if you plan to hire employees.
- Transfer Assets and Liabilities: Officially transfer all assets and liabilities from the LLC to the C-Corp. This includes bank accounts, contracts, intellectual property, and any debts.
- Adopt Bylaws and Issue Stock: Create corporate bylaws to govern the C-Corp's operations and issue stock certificates to the founder(s).
- Notify Relevant Parties: Inform all relevant parties, including clients, vendors, and financial institutions, about the conversion and the new corporate entity.
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