How to Change From an S-Corp to an LLC
- 1). Obtain an articles of organization form to create a LLC from the secretary of state's office. The form is available both from the physical office of the secretary of state, and on the agency's website.
- 2). Complete the articles of organization, which are easy to complete. Only basic information is required to establish a LLC.
- 3). File the articles of organization at the secretary of state's office or submit over the Internet at the agency's website.
- 4). Prepare and pass a resolution through the S-Corp to transfer all assets of that enterprise to the newly formed LLC. A resolution is voted on by any individual or individuals who own stock in the S-Corp.
- 5). Draft an agreement transferring the assets of the S-Corp to the LLC. The agreement can be simple and need only clearly set forth that all assets of the S-Corp are transferred to and become the property of the LLC.
- 6). Execute the asset transfer agreement. The asset transfer agreement is signed by the chief executive of the S-Corp and the manager of the LLC, which can be the same individual.
- 7). Prepare and pass a resolution dissolving the S-Corp.
- 8). Commence operations of the business as an LLC.
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