To change from an LLC to a corporation in Washington State, you’ll need to change the business formally with your state’s Secretary of State. You can switch your limited liability company’s tax status to S corporation, provided it meets the Internal Revenue Service’s (IRS) requirements. Therefore, some small business owners change their LLCs to S-Corps for specific reasons, including tax benefits. LLCs offer the pass-through taxation offered by Sole Proprietorships while providing the liability protection of Corporations.
Ways to Change LLC to C Corp in Washington State
There are three ways to change your LLC into a C Corp in Washington State. You can choose from statutory conversion, statutory merger, or creating a new company. Details and key requirements covering these options include filing a Certificate of Conversion with your Secretary of State.
Streamlined Process for Conversion
Is it easy to switch from an LLC to a corporation? Up until recently, if a Washington LLC wanted to become a corporation, the only option was to participate in a merger. Fortunately, in 2014, the Washington legislature amended the LLC Act and the Business Corporation Act to allow entities to convert, rather than merge.
If the owners of your LLC agree, you can convert your company to a corporation. Some states have a streamlined process that allows you to easily transition your LLC to a corporation.
Additional Information
If you wish to convert an LLC to a corporation in Washington State, it’s also possible to convert entities from other states into Washington entities and vice versa, though it’s important to ensure that the other state’s laws authorize such conversion before attempting to do so.