How to Convert Your Therapist LLC to C-Corp in California (2026)

As your California-based therapist LLC grows, converting to a C-Corp might become a strategic move in 2026. This guide outlines the key considerations and steps involved in converting your therapist LLC to a C-Corp in California, ensuring you're well-prepared for the transition. Lovie can help automate this complex process, ensuring compliance and efficiency.

When to Convert

Conversion Steps

Conduct a Business Valuation: Determine the fair market value of your therapist LLC. This is crucial for understanding the financial implications of the conversion and ensuring accurate stock allocation in the new C-Corp.
Develop a Conversion Plan and Agreement: Create a detailed plan outlining the steps involved in the conversion, including asset transfer, liability assumption, and stock allocation. This plan should be formalized in a written agreement.
File Articles of Incorporation with the California Secretary of State: File the necessary documents to create your C-Corp, including the Articles of Incorporation. Pay the filing fee, which is currently $100 in California. Expedited filing options are available for an additional fee ($750 for same-day processing).
Obtain an EIN from the IRS: Apply for a new Employer Identification Number (EIN) from the IRS for your C-Corp. This is free and can be done online.
Transfer Assets and Liabilities: Officially transfer all assets and liabilities from your therapist LLC to the newly formed C-Corp. This includes bank accounts, contracts, and insurance policies.
Issue Stock Certificates: Issue stock certificates to the members of the former LLC, reflecting their ownership in the new C-Corp. Ensure compliance with California securities laws.
Update Licenses and Permits: Update all relevant licenses and permits, including your therapist licenses, to reflect the new C-Corp entity. This is crucial for maintaining compliance with California regulations.

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