Entity Conversion

$99.00

SKU: FS-ENTITY-CONV Categories: , ,

Description

Entity Conversion

Need to either change the tax status or entity type of your company?

For a base price starting at $99 for Tax Conversion, L4SB will convert your LLC to a S-Corp or C-Corp. For a base price starting at $199 for Entity Conversion, L4SB will convert your LLC to a Corporation, or a Corporation to a LLC.

What’s Included:

For Tax Status Conversion Only:

  • Help fill out and submit IRS Form 2553 (for S-Corp Election) or IRS Form 8832 (for C-Corp Election)
  • Revised Operating Agreement to support the new Tax Status, using our Couture Operating Agreement generator

For Entity Conversions:

  • Appropriate Articles of Conversion
  • Conversion of Articles (i.e. from Incorporation to Organization, or visa-versa)
  • If Corporation to LLC, access to our Couture Operating Agreement
  • If LLC to Corporation, assistance with conversion of Operating Agreement to Bylaws / Shareholder Agreement
  • Appropriate Corporate Resolution
  • Review by a licensed attorney (not available in states where we are not licensed)
  • 15 minutes of FREE Q&A with an experienced corporations attorney (may not be licensed in your state)

 

What’s NOT Included:

This is a low-cost offering, assuming there are no difficult issues to resolve (which would require additional expense for lawyer time). Examples of difficult issues to resolve include, but are not limited to:

  • Handling change of ownership issues
  • Resolving ownership or partnership disputes
  • Significant revision to Operating Agreement or Bylaws / Shareholder Agreement, beyond what our expert computer systems are capable of doing

Refund and Cancellation Policy

  • We will REFUND YOU IN FULL, at your request, provided we have not performed any services on your behalf. There is NO REFUND for completed services.
  • Note that our services INCLUDE preparation, processing and handling (valued at $150), even if we end up not submitting anything to the state (for whatever reason). Therefore, if we’ve spent time on your behalf in the preparation, processing or handling of your order, we reserve the right to deduct $150 from any refund you request. Preparation, processing and handling includes trying to contact you to verify and approve our work, even if you fail to respond to us.
  • We will cancel your order, at our discretion, if you are unresponsive or otherwise fail to answer our questions to our satisfaction. If we cancel for this reason, we will NOT issue you a refund unless you request it. If you do request it and we issue a refund, it will be less $150 for our services related to the preparation, processing and handling of your order, and less any other services we have provided (i.e. if you ordered a document, and we sent you that document, we will deduct the cost for that document from your refund). Typically, we will not cancel your order, unless we have been unable to move your order forward for eight (8) months or more.
  • We will first attempt to issue you a refund using the same payment method you used to pay for your order. If that fails (i.e. because we’re beyond the deadline to do this — typically six (6) months for credit cards), we will issue a check to the name used on the payment method (i.e. if Joe ordered from us, but used Jane’s credit card, we will issue the refund to Jane).

You should double-check with your accountant about “converting the entity” versus “converting the tax status”. This is a very easy thing to get confused, and you really want to make sure you’re doing the right thing. One suggestion is to ask your accountant, “You want me to convert my LLC to a Corporation, versus simply have the LLC taxed under Subchapter S?”

If your accountant wants you to be taxed under Subchapter S, and doesn’t care whether you have a LLC or Corporation, then our suggestion is to select Tax Status Conversion Only. This will preserve your entity type, but help you convert the tax status of your organization.

Otherwise, if your accountant does want you to convert the entity type from LLC to Corporation, then select Full Entity Conversion.

If you’re not sure, then we strongly encourage you to select the Not sure. Have tax attorney call before proceeding. option. This is not something you want to screw up.

Not all states permit entity conversion. Specifically, Montana, New Jersey and New York do not have any form of entity conversion option whatsoever. Kentucky doesn’t permit LLC to Corporation conversion, but it does permit Corporation to LLC conversion.

We can help change the tax status of a LLC or Corporation, but we cannot convert the entity type in these states.

If you live in one of these states, and you want a conversion that is not supported, please contact us, since there are other options (i.e. such as a merger to a new entity type).

No. An Entity Conversion assumes you already have a corporate entity (i.e. Corporation or LLC) in place, and you want to change it to something else.

If you are a sole proprietorship, you are “the company.” To start operating as a corporate entity, you need to form a Corporation or form a LLC. If you’re not sure what you want, we encourage you to try our Entity Selection Tool to help you determine the best entity for your needs.

If you have other questions, we do sell a 30-minute business attorney consult, which can help answer questions and point you in the right direction.

But, please DO NOT purchase this service. It’s intended for existing company structures, not new structures and not sole proprietorships.