Many people want to create an LLC because of its lower financial costs and less maintenance than a Corporation. However, in the future, if you plan to raise capital for your company you will want to convert it to a C Corp. While it may sound intimidating to convert your LLC to a C Corp, heres an easy guide on how to do it⤵
The LLC Consent form is paperwork that lawyers will create for you, which shows that all the members of an LLC approve of the conversion into a C Corp. It is necessary that all members of the LLC agree.
The second form, the Agreement and Plan of Conversion, is to dictate the conversion of 'units' to 'shares'. LLC's grant 'units' to people as the equivalent of giving 'shares' in a corporation. There must be an agreement of how the units will convert to shares once officially a C Corporation.
The documents needed to file are the Certificate of Conversion from Delaware/Non-Delaware LLC to Delaware C-Corporation, and a Delaware Certificate of Incorporation. These options come with an expedited filing option ($300 and will be done in a matter of days) or the standard filing option (Cheaper but takes a longer time).
Corporations must have bylaws (laws in which the company will operate and govern itself). You will also have to have a Sole Incorporator Consent form. This form allows the creation of a board of directors, which is also mandatory for a C Corporation
Doola is a one-stop-shop to creating your LLC! We can create the LLC for you, and when the time is right you can easily convert it to a C-Corp following these steps above 😃
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