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Entity Conversion in
North Carolina

Entity Conversion in North Carolina

Conversion of LLC into Corporation

LLC-to-Corporation conversions are permitted under North Carolina law.

Conversion of Corporation into LLC

Corporation-to-LLC conversions are permitted under North Carolina law.

Process of Conversion

Prior to filing the necessary conversion documents with North Carolina Secretary of State, the company needs to hold a meeting of members (LLC) or directors and shareholders (corporation) and officially approve the conversion.

Next, conversion documents are filed with North Carolina Secretary of State, which reviews them, and if everything complies with the laws and requirement, approves them and returns filed copies. In North Carolina this document would be Articles of Incorporation (for LLC-to-corporation conversion), or Articles of Organization (for corporation-to-LLC conversion), which includes Articles of Conversion as a single document.

After conversion was approved by the state, a few additional steps are necessary to be made in order to complete the process, such as adopting bylaws for resulting corporation (operating agreement for LLC), holding initial meetings, issuing stock certificates etc.

Finally, after the process of conversion is completed it is important to properly adjust company's tax designation by the IRS, which is done by filing appropriate IRS form (Form 8832 or Form 2553, depending on situation). NOTE: It is important to discuss tax implications of conversion with your tax advisor prior to initiating the conversion.

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Our company provides full service in assisting with entity conversion in North Carolina. We will handle all the steps of conversion in North Carolina from preparing the necessary documents to filing all applications with the North Carolina Secretary of State, and making sure the filing is successful.

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