I have a LLC that i formed less then a year ago, it was a long process of filing fees and publishing fees. I was wondering how hard and what are the steps to convert my LLC to a C-Corp. I want to give out stocks.
Is the issuance of stock the only reason you want to convert this LLC to a C-corp? Also, to whom are you planning on issuing stock and why wouldn't it be easier to simply issue membership interests in the LLC to these people?
Also, if you want the LLC to be treated as a c-corporation for tax purposes, then you can elect to have the LLC treated as a corporation without having to actually change the form of the entity for non-tax purposes.
That being said, if you are still determined to change to a c-corporation, you will have to form a new corporation because New York LLCs cannot convert to another type of entity, such as a corporation. Once the new corporation is formed, if you need to transfer any assets to the corporation from the LLC there are several ways to accomplish that. However, because there are a variety of different issues involved in doing this, I cannot simply provide you with a complete discussion of all the alternatives here. I would be more than happy to discuss these matters with you in greater detail; I can be contacted by email at [email protected]
I agree with the statements of my learned colleague. Why are you wanting to give out stocks? What are the benefits from going from an LLC to a C- Corp. These are issues to talk about with a business attorney and an accountant in person in your area, as they might advise a different course of action.
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