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How to Convert Your Existing LLC to a Delaware LLC with doola in 2025

Esha Panda
By Esha Panda
Published on 13 Jan 2025 Updated on 27 Jan 2025 7 min read Updated on 27 Jan 2025
How to Convert Your Existing LLC to a Delaware LLC with doola in 2025

If you’re running a business with an LLC structure, you might be considering making the jump to Delaware—home to a pro-business legal environment, tax benefits, and other perks for LLC owners.

But how to convert your existing LLC to a Delaware LLC?

In this blog, we’ll walk you through the pros and cons, the requirements, and the step-by-step process.

And, we’ll also show how to convert your existing LLC to a Delaware LLC with doola, ensuring everything is handled with precision.

Let’s doola it—this time in Delaware!

Should You Convert to a Delaware LLC? Pros and Cons to Consider

The Pros:

Often called the “corporate capital of the US”, Delaware has become the go-to state for entrepreneurs seeking flexibility, legal protection, and tax advantages.

73% of the business entities formed in Delaware are LLCs.

So before getting into how to convert your existing LLC to a Delaware LLC, let’s first understand why many business owners choose Delaware:

✔️ Business-Friendly Laws:

Delaware has a reputation for having business laws that are clear, flexible, and supportive of entrepreneurs.

📌 Note: The Delaware Court of Chancery, a specialized business court, is acclaimed for its expertise and efficiency in resolving corporate disputes, providing businesses with a sense of security and stability.

✔️ Tax Benefits:

Delaware’s tax structure is a major draw for LLCs. The state does not impose a sales tax and offers several other tax advantages, including no taxes on out-of-state income. This makes it especially appealing for businesses operating nationally or internationally, allowing them to maximize their profits.

✔️ Privacy Protection:

LLCs based in Delaware provide strong privacy protection for their owners. You don’t have to disclose the names of LLC members or managers publicly.

✔️ Enhanced Credibility:

Being a Delaware LLC can lend a certain level of prestige to your business, which can help build trust with investors, partners, and customers.

The table below provides a quick summary of the business benefits of converting to a Delaware LLC.

How to Convert Your Existing LLC to a Delaware LLC with doola in [year]

The Cons:

While Delaware offers numerous advantages, as we’ve just explored, it’s important to consider potential drawbacks before we discuss how to convert your existing LLC to a Delaware LLC.

❌ Cost Involved:

While Delaware’s fees are relatively low, you still need to pay the state’s formation fees, franchise taxes, and any additional legal or accounting costs involved in the conversion process.

❌ Dual-State Compliance:

If you continue operating in your original state, you may be required to maintain compliance in both states, which can increase administrative costs and complexity.

❌ Complexity of Conversion:

Converting an LLC to Delaware involves navigating the conversion process carefully, especially if you don’t have experience with business legalities.

Ultimately, deciding how to convert your existing LLC to a Delaware LLC depends on your unique business goals, growth aspirations, and the strategic advantages you seek for your company’s legal structure.

Delaware offers a business-friendly environment, but it’s essential to weigh the benefits against potential costs and compliance requirements to ensure it aligns with your vision.

If you’re uncertain about how to convert your existing LLC to a Delaware LLC or questioning whether it’s the right strategic move for your business, the image below will provide the clarity and direction you need to make an informed decision..

How to convert your existing LLC to a Delaware LLC

How to convert your existing LLC to a Delaware LLC: Factors to Consider

Want to understand how to convert your existing LLC to a Delaware LLC directly from the experts?

Let doola guide you through the process seamlessly with top-rated Delaware LLC formation services.

Prerequisites for Converting to a Delaware LLC

Before you understand how to convert your existing LLC to a Delaware LLC, there are a few prerequisites you’ll need to address:

✔️ Check Your Current State Laws:

Not all states allow LLCs to directly convert to a Delaware LLC.

You’ll need to verify whether your current state allows this process and review the legal procedures required.

✔️ Prepare Your LLC’s Articles of Organization:

Your LLC’s Articles of Organization (or equivalent formation document) from the current state will need to be in good standing and up-to-date.

✔️ Get Your Employer Identification Number (EIN):

Ensure that your EIN is updated and ready for use. If you’re changing states, your EIN may need to be re-issued. doola can help you fill out your form SS-4, which is a critical part of the EIN application and retrieval process.

📌 Note: Founders with a US Social Security number, US address, and US phone number qualify for expedited processing with doola. Those without these details will still benefit from efficient standard processing.

✔️ Make Sure You’re in Good Standing:

Your LLC should be in good standing in its home state, implying it’s up-to-date on taxes and fees, as Delaware requires this for conversion.

Step-by-Step Guide: How to Convert Your Existing LLC to Delaware LLC

Here’s how to convert your existing LLC to a Delaware LLC in 8 simple steps:

Step 1: Check Eligibility and Requirements

Verify that both your home state and Delaware allow LLC conversions. Not all states have provisions for LLCs to convert to another state.

Step 2: File the Certificate of Formation in Delaware

Start the process by filing a Certificate of Formation with the Delaware Division of Corporations. You will need to provide essential details about your LLC, such as its name, registered agent, and business address.

Step 3: Obtain the Certificate of Good Standing

In order to convert, you will need to obtain a Certificate of Good Standing from your current state. This proves your LLC is compliant with local laws and taxes.

Step 4: File the Certificate of Conversion

Delaware requires you to file a Certificate of Conversion with the Secretary of State. This officially completes the process of converting your LLC into a Delaware LLC.

Step 5: Set Up a Registered Agent in Delaware

A Delaware LLC must have a registered agent located in Delaware. You can hire a professional registered agent service to ensure compliance.

Step 6: Update Your Operating Agreement

Make sure your LLC’s Operating Agreement reflects Delaware laws and any changes made during the conversion process.

Step 7: Notify Your State of the Conversion

Once you’ve filed the necessary paperwork in Delaware, notify your home state about the conversion. You may need to file dissolution paperwork or notify the state that your LLC has moved.

Step 8: Update Your EIN (if necessary)

If your EIN needs updating, you’ll want to notify the IRS and update your LLC’s details.

doola can help you navigate these steps seamlessly—from helping you understand how to convert your existing LLC to a Delaware LLC to handling the intricate paperwork and ensuring compliance with Delaware regulations.

With its globally acclaimed LLC formation services, doola simplifies the process, saving you time and minimizing stress so you can focus on scaling your business.

Common Mistakes to Avoid When Converting to a Delaware LLC

While the process may seem straightforward, there are a few common mistakes that can delay the conversion or even lead to legal issues. Here’s what to watch out for:

❌ Failing to Obtain the Certificate of Good Standing:

Make sure you get this document from your home state. Without it, your conversion will not be approved in Delaware.

❌ Not Updating Your Operating Agreement:

An outdated Operating Agreement could create confusion regarding the new state laws that apply to your LLC.

❌ Forgetting About Ongoing State Compliance:

Once you convert to Delaware, ensure you’re compliant with both Delaware and your original state’s requirements, including taxes, franchise fees, and annual reports.

❌ Not Choosing the Right Registered Agent:

If you don’t hire a professional registered agent in Delaware, your LLC will not be legally recognized, which can result in penalties or missed legal notices.

Post-Conversion Checklist – What to Do After Moving to Delaware

Once you’ve successfully converted your LLC, there are a few final steps to complete:

1. File Your Annual Franchise Tax Report: Delaware LLCs must file an annual franchise tax report. Don’t forget to stay on top of this to maintain good standing.

2. Update Your Business Documents: Ensure all your business documents, including contracts, business bank accounts, and vendor agreements, reflect your new Delaware LLC status.

3. Notify Your Clients and Partners: Inform your clients, partners, and vendors of the change in your LLC’s legal structure and location.

4. Review Your Taxes: Consider consulting a tax professional to ensure you’re not double-taxed and to help with any other tax implications of converting your LLC to Delaware.

From understanding how to convert your existing LLC to a Delaware LLC to ticking off the post-conversion checklist successfully, doola is your trusted partner every step of the way.

Book a free consultation to get started with doola’s Delaware LLC conversion services.

FAQ: Converting an LLC to Delaware

FAQ: how to convert your existing LLC to a Delaware LLC

1. How long does it take to convert an LLC to Delaware?

The process can take anywhere from a few days to a few weeks, depending on the complexity and how quickly you file the necessary paperwork.

2. What are the main costs associated with converting?

Costs typically include Delaware’s filing fees, potential legal fees, registered agent fees, and any taxes associated with both the conversion and the maintenance of your LLC.

3. Will I pay taxes in both states?

Generally, if you maintain a physical presence in your original state, you may need to continue paying state taxes in that state. Delaware itself doesn’t impose state income tax on LLCs that do not operate within the state.

4. Is it necessary to hire a lawyer for the conversion?

While hiring a lawyer isn’t strictly necessary, it can help ensure the conversion process is smooth and legally compliant. If you’re unsure about the details, working with a professional can save you time and stress.

How to Convert Your Existing LLC to Delaware LLC with doola

How to Convert Your Existing LLC to Delaware LLC with doola

With doola’s Delaware LLC formation services, you no longer have to worry about how to convert your existing LLC to a Delaware LLC.

We handle everything from filing the necessary paperwork to ensuring you meet Delaware’s compliance standards. Additionally, our team is ready to assist with the conversion process, guide you through the steps, and answer any questions you may have along the way.

If you’re ready to take your LLC to the next level with the benefits of Delaware, doola is here to help every step of the way.

Book a free consultation today to get started with your Delaware LLC conversion!

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How to Convert Your Existing LLC to a Delaware LLC with doola in [year]