Can I convert my LLC to a corporation, what is the procedure for doing this

Relatively easy to do, and it is all regulated by the California Corporation Code. More importantly, however, is specifically why you wish to convert your limited liability company to an S Corporation election.

For CA specific information and requirements under the California Code see:
http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=corp&codebody=&hits=20

Title 1 addresses corporations, scroll down the page to Title 2.5 for Limited Liability Companies.

The choice of entity that is nest suited to your needs is driven by your goals. Be it tax strategies, asset protection and liability insulation, or simply the cache of having "Incorporated" in the name - as well as the specific business operations to be carried out, each factor should be considered.

Generally speaking, the LLC offers many of the same advantages as an S Corp, but in a more streamlined structure with simply reporting and "flow-through" taxation, meaining you do not have to file a seperate tax return for the LLC.

Additionally, your query indicates it is "your" LLC - if you are seeking to use the Corporation structure for protectino from liablity, you should be aware that in the case of an LLC or a Corporation, if it is run essentially as a sole propreitroship, the Courts have demonstrated strong willingness to "pierce the corporate veil" holding the owners personally liable for any misdeeds and/or liabilities of the company. Strict adherence to all of the formal requirements for reporting and book-keeping, etc. are imperative to preserve any advantges offered by the choice of enity.

You may want to consult with a qualified tax advisor or an attorney with expereince in choice of business entities to determine which entity is best suited to meet your goals.

NOTE: This answer provides generic and general information only and does not constitute legal advice, nor is representation expressly or impliedly provided.

You need to proceed carefully in this arena because the way a conversion is structured could lead to a deemed liquidation of the LLC and generate a taxable event. I agree with Kevin, you should work with an tax advisor and/or an attorney with expereince in choice of business entities in determining whether you should continue as an LLC or use a C-coporation or S-corporation. You may also want to consider leaving the LLC in place and having the membership interests aquired by a new C-coporation or S-corporation.


NOTE: This answer provides generic and general information only and does not constitute legal advice, nor is representation expressly or impliedly provided. If you have specific legal questions, you should to meet with an attorney.

In addition to the points above, you could simply file an election under the check the box rules to change your tax status (if taxation is your reason for converting). Such a change could trigger gain or loss.

The first question is "why?" Itr is terribly important to speak with counsel and/or your accountant as to the pros and cons of various structures. If you create a C corp, you are subject ta tax on retained earnings, whereas with an LLC, profits and losses spin out to directly. It may be that a manner year needs to be sheltered in a C Corp. The concern is that you do not create other problems by soliving the samiple one.