How to Convert Your Therapist LLC to C-Corp in Delaware (2026)
As your therapist LLC in Delaware evolves, converting to a C-Corp might become strategic. This guide outlines the 'when' and 'how' of this transition in 2026, covering key considerations for your practice and how AI-powered platforms like Lovie can streamline the process. Delaware's business-friendly environment, particularly its Court of Chancery, can make a C-Corp advantageous as you scale.
When to Convert
Conversion Steps
- Assess Your Current Structure: Evaluate your LLC's operating agreement, financial health, and long-term goals. Determine if a C-Corp truly aligns with your future vision. Consider consulting with a financial advisor familiar with Delaware business law.
- Draft a Plan of Conversion: Create a formal plan outlining the conversion process, including the exchange of LLC membership interests for C-Corp stock. This plan must comply with Delaware law.
- LLC Member Approval: Obtain unanimous consent from all LLC members, unless your operating agreement specifies otherwise, to approve the conversion plan. Document this approval in meeting minutes.
- File Certificate of Conversion: File a Certificate of Conversion with the Delaware Secretary of State, along with the Certificate of Incorporation for your new C-Corp. The filing fee for a C-Corp is $89.
- Obtain an EIN: Apply for a new Employer Identification Number (EIN) from the IRS for your C-Corp. This is required even if your LLC already had one.
- Transfer Assets and Liabilities: Transfer all assets and liabilities from the LLC to the C-Corp. This includes bank accounts, contracts, and any other relevant business items. Ensure compliance with Delaware's Uniform Commercial Code.
- Update Licenses and Contracts: Notify all relevant parties, including licensing boards, insurance providers, and vendors, of the conversion and update all contracts and licenses to reflect the C-Corp's name and EIN. This is especially crucial for therapist licenses and insurance paneling agreements.
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