How to Convert Your Solo Founder LLC to C-Corp in District of Columbia (2026)
As a solo founder in the District of Columbia, starting with an LLC provides simplicity and liability protection. However, as your business grows, especially if you're eyeing venture capital or significant expansion, converting to a C-Corp may become necessary. This guide outlines the process for converting your solo founder LLC to a C-Corp in DC in 2026, highlighting key considerations and steps.
When to Convert
Conversion Steps
- Develop a Conversion Plan: Outline the reasons for conversion, assess financial implications, and project future needs. This includes determining the new C-Corp's structure and authorized shares.
- Adopt a Plan of Conversion: The LLC members (in this case, you as the solo founder) must formally approve a plan of conversion, outlining the terms and conditions of the conversion to a C-Corp.
- File Articles of Incorporation: File Articles of Incorporation with the DC Department of Licensing and Consumer Affairs (DLCA) to create the new C-Corp. The filing fee is $220 in 2026. Expedited processing is available for an additional fee.
- Obtain an EIN: Apply for a new Employer Identification Number (EIN) from the IRS for the C-Corp. This is required for tax purposes and can be done online.
- Transfer Assets and Liabilities: Officially transfer all assets and liabilities from the LLC to the newly formed C-Corp. This includes bank accounts, contracts, and intellectual property.
- Update Licenses and Permits: Update all business licenses and permits to reflect the new C-Corp entity. This is crucial for maintaining compliance with DC regulations.
- Notify Relevant Parties: Inform customers, vendors, and other relevant parties about the conversion and the new C-Corp entity. Update all business documents and marketing materials accordingly.
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