We are an "S" Corp wishing to convert to a "C" Corp. Would converting to an LLC Corp be a better idea?

If you do have funding interested, then you may want to convert to a C-Corp. It is fairly simple check-the-box action. Moreover, VCs normally avoid investing in LLCs because they risk getting an income tax termed unrelated business tax income (UBIT). VCs frown on this income and most often the VC funding agreements contain provisions that state that the VC will use its efforts to avoid UBTI.

You really must retain legal counsel if you are thinking of getting investors. The complexity of the agreements, the securities laws, and tax consequences are considerable and not something anyone other than an experienced counsel would know completely.

Each entity will have the same characteristics of limited liability, assuming it is properly formed, funded, and maintained. This is yet another reason to retain counsel. Funding is never something that should be considered without professional advice or you will make mistakes that will cost you hundreds of times more than what you would have paid at the outset.

DISCLAIMER—This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship. For legal advice, you should retain legal counsel in your state for advice regarding your specific circumstances.