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Convert Your Business Entity with Confidence
Swyft Filings helps business owners legally change their entity structure, for example, from an LLC to a C Corp or S Corp, or from a C Corp to an LLC. Our specialists manage the filing and documentation process from start to finish, so your business keeps moving forward.
- Update liability protection
- Unlock Growth and Investment
- Strategic Tax Optimization
Start Your Business Conversion
Have questions? Call us at (877) 777-0450
Convert Your Entity in 3 Simple Steps
1
Share Your Goals
Tell us your target business structure and goals, and we will tailor the transition to your specific needs.
2
Reviewed and Filed for You
Our specialists prepare and file your statutory conversion documents with the state, ensuring everything is submitted correctly.
3
Get Your Updated Documents
Access your official conversion paperwork in your secure online account, while fully preserving business continuity.
Business Entity Conversion Pricing Package
$199+ state fee
Expedited filing options available at checkout.
What does the business entity conversion service include:
- Custom preparation of your official state conversion and formation documents.
- Thorough filing specialist review of all entity paperwork to eliminate errors.
- Direct document filing with your state's target governing agency.
- Fast digital delivery of your approved conversion documents.
- Safe handling of your EIN, bank information, and business details.
- Live specialist support to answer all your questions.
* In states where statutory conversion is unavailable, alternative methods (such as a merger or dissolution/reforming) may be required and can alter the workflow or timeline.
The total cost of a business conversion depends on two things: your state's filing fees and the service fee for professional filing assistance. State fees vary significantly. Some states charge under $100 for conversion filings. Others charge several hundred dollars.
State filing fees go directly to your state agencies and are required regardless of how you file. Swyft Filings charges a separate service fee to review your documents, prepare the filings, and submit them correctly. All pricing is listed as a service fee + state filing fees.
Why Choose Swyft Filings for your Business Conversion
Smooth Transitions for Growth
We make converting your business entity simple so you can adapt to new goals without confusion or delays.
Stay Compliant in Every State
Entity conversions must meet state-specific rules. We review requirements carefully to help you avoid compliance setbacks.
Live Expert Support
Our specialists are available to answer questions and guide you through the conversion process step-by-step.
Filed Correctly Every Time
Your conversion documents are reviewed for accuracy and filed properly to help you avoid costly mistakes or rejections.
What Is Business Entity Conversion
Business entity conversion is the legal process of changing your business from one structure to another. An LLC can become a corporation. A corporation can elect S Corp status. Each change updates your tax classification, ownership structure, and compliance requirements at both the state and federal levels.
A statutory conversion (the formal legal method) lets you change your structure without dissolving your existing business. Your contracts, bank accounts, and business history carry over. You get a new legal structure without starting from scratch.
A statutory conversion (the formal legal method) lets you change your structure without dissolving your existing business. Your contracts, bank accounts, and business history carry over. You get a new legal structure without starting from scratch.
When Should You Convert Your Business
Not every business needs to convert. These are the situations where a conversion makes the most sense.
When Raising Venture Capital or Investor Funding
Most venture capital firms and institutional investors require a C Corporation structure before they will consider funding a business. An LLC does not support the issuance of preferred stock, which is the standard equity instrument in most funding rounds.
If you plan to raise a seed round or Series A, converting to a C Corp is a required step in most cases. Delaware C Corps are the most commonly preferred structure for VC-backed companies.
If you plan to raise a seed round or Series A, converting to a C Corp is a required step in most cases. Delaware C Corps are the most commonly preferred structure for VC-backed companies.
When Optimizing Your Tax Structure
Tax efficiency is one of the most common reasons business owners consider a conversion. An LLC with significant profits can face high self-employment tax on all net income. An S Corporation allows owners to pay themselves a reasonable salary and take remaining profits as distributions, which are not subject to self-employment tax.
A C Corporation has a flat 21% federal corporate tax rate, which can be lower than the personal income tax rate for high earners. Each path has trade-offs. The right choice depends on your income level, distribution plans, and long-term goals.
A C Corporation has a flat 21% federal corporate tax rate, which can be lower than the personal income tax rate for high earners. Each path has trade-offs. The right choice depends on your income level, distribution plans, and long-term goals.
When Scaling Business Operations
As a business grows, its structure often needs to grow with it. Corporations offer clearer lines of authority, easier equity sharing with employees through stock option plans, and a more formal governance structure that outside stakeholders expect.
If you are adding key employees, bringing in co-founders, or building an organizational chart, a corporate structure supports that kind of growth more cleanly than a standard LLC.
If you are adding key employees, bringing in co-founders, or building an organizational chart, a corporate structure supports that kind of growth more cleanly than a standard LLC.
When Changing Ownership Structure
An LLC has flexibility in how it handles ownership, but some ownership changes are cleaner inside a corporation. If you want to bring in investors at different preference levels, issue shares to employees, or separate voting and economic rights, a corporation gives you better tools to do that.
When LLC Structure Is No Longer Sufficient
Some businesses outgrow the LLC structure, not because it failed, but because their goals changed. A business preparing for an IPO, a merger, or an acquisition often needs to be a corporation first.
Buyers and partners in formal transactions expect corporate governance documents. Converting early means you are ready when the opportunity arrives.
Buyers and partners in formal transactions expect corporate governance documents. Converting early means you are ready when the opportunity arrives.
Changing Your Business Structure: What Every Owner Should Know
LLC Conversion From a C Corp or S Corp
Many businesses start as an LLC and convert to an S Corp or a C Corp, depending on growth and tax goals.
Converting from a corporation to an LLC simplifies your structure and can reduce your overall tax burden, though it typically means giving up the ability to issue stock or raise traditional venture capital. For S corporations, converting to an LLC can offer more flexible ownership, fewer shareholder restrictions, and simpler day-to-day management while still keeping pass-through tax treatment.
Converting from a corporation to an LLC simplifies your structure and can reduce your overall tax burden, though it typically means giving up the ability to issue stock or raise traditional venture capital. For S corporations, converting to an LLC can offer more flexible ownership, fewer shareholder restrictions, and simpler day-to-day management while still keeping pass-through tax treatment.
C Corporation Conversion From an LLC or S Corp
A C Corporation is the standard structure for businesses planning to raise venture capital, issue stock options, or eventually go public. It supports multiple classes of stock with no limit on the number of shareholders.
Converting from an LLC to a C Corp is often driven by investor requirements. Most venture capital firms and institutional investors require a C Corp structure before investing, and an LLC cannot issue stock options as a corporation can.
For S Corps, converting to a C Corp removes the shareholder cap, opens the door to foreign investors, and allows multiple classes of stock, all of which become necessary when raising serious outside capital.
Converting from an LLC to a C Corp is often driven by investor requirements. Most venture capital firms and institutional investors require a C Corp structure before investing, and an LLC cannot issue stock options as a corporation can.
For S Corps, converting to a C Corp removes the shareholder cap, opens the door to foreign investors, and allows multiple classes of stock, all of which become necessary when raising serious outside capital.
S Corp Conversion From an LLC or C Corp
An S Corp is not a separate legal entity; it is a federal tax election made on top of a corporation or, in some states, an LLC. It allows profits and losses to pass through directly to shareholders, avoiding corporate-level taxation.
Converting from an LLC to an S Corp election is typically a tax-driven decision. LLC owners pay self-employment tax on all business profits. With an S Corp election, owners can pay themselves a reasonable salary and take the remaining profits as distributions, which are not subject to self-employment tax.
For C Corps, converting to an S Corp eliminates the double taxation problem; profits are no longer taxed at the corporate level before reaching shareholders, making it a smart move for businesses that no longer need the structural complexity a C Corp provides.
Converting from an LLC to an S Corp election is typically a tax-driven decision. LLC owners pay self-employment tax on all business profits. With an S Corp election, owners can pay themselves a reasonable salary and take the remaining profits as distributions, which are not subject to self-employment tax.
For C Corps, converting to an S Corp eliminates the double taxation problem; profits are no longer taxed at the corporate level before reaching shareholders, making it a smart move for businesses that no longer need the structural complexity a C Corp provides.
How Business Entity Conversion Works
Converting to a corporation involves four key steps. Each one requires the right documents filed in the right order with the right agencies. Here are the steps for an LLC conversion:
Step 1: Choose Your New Entity Type
Your first decision is which structure fits your goals.
- A C Corporation works well for businesses seeking outside investors or equity funding.
- An S Corporation works for eligible businesses that want pass-through taxation with a formal corporate structure.
Step 2: File Articles of Conversion and Incorporation
Once you know your target structure, your state requires two documents: Articles of Conversion and Articles of Incorporation. The former formally closes out your LLC structure, and the latter creates your new corporation on record.
Both documents must meet your state's specific formatting and content requirements. Filing errors or omissions can delay approval. Swyft Filings specialists review and submit both documents to help you avoid common filing mistakes.
Both documents must meet your state's specific formatting and content requirements. Filing errors or omissions can delay approval. Swyft Filings specialists review and submit both documents to help you avoid common filing mistakes.
Step 3: Update Your IRS Tax Classification
After state approval, you need to update your federal tax status. The IRS does not automatically reclassify your business when your state structure changes. You file IRS Form 8832 to change your entity classification or IRS Form 2553 to elect S Corporation status.
This step has strict deadlines. For example, S Corp elections must be filed no later than two months and 15 days after the start of the tax year to take effect in that year. Missing that window pushes your election to the following year.
This step has strict deadlines. For example, S Corp elections must be filed no later than two months and 15 days after the start of the tax year to take effect in that year. Missing that window pushes your election to the following year.
Step 4: Receive Approval and Continue Operations
Once both state and federal filings are processed, you will receive your updated formation documents. Your new entity structure is now on record. You can continue operating with updated bylaws, a new corporate structure, and the tax classification that fits your goals.
Tax Implications of Business Conversion
Changing your entity structure changes how your business is taxed. It's important to understand the shift before you convert, so you can plan accordingly.
LLC taxation
Profits and losses pass through directly to members and are reported on personal tax returns. Members pay self-employment tax on their full share of net income. There is no entity-level federal income tax.
C Corp taxation
The corporation pays a flat 21% federal corporate income tax on profits. When those profits are distributed to shareholders as dividends, shareholders pay tax again on those dividends at their personal rate. This is double taxation, which business owners should weigh against the structural benefits before converting.
S Corp taxation
Profits pass through to shareholders and are reported on personal returns, similar to an LLC. The key difference is that S Corp shareholders who work in the business must pay themselves a reasonable salary. Payroll taxes apply to that salary. Remaining profits distributed above the salary are not subject to self-employment tax, which is where the potential savings come from.
What Happens After You Convert Your Business
Conversion approval is not the finish line. Several steps follow to keep your business compliant and operational under its new structure.
Update IRS records and tax classification
File the appropriate IRS form to reflect your new entity type. Form 8832 handles general entity classification changes. Form 2553 is specific to S Corp elections.
Update payroll and accounting systems
If you are converting to an S Corp, you will need to set up payroll to pay yourself a reasonable salary. Your accounting structure may need to change as well.
Revise your governing documents
Your LLC operating agreement no longer applies; your corporation needs bylaws, a board structure, and a record of initial organizational actions.
Stay compliant under your new structure
Corporations have more ongoing compliance requirements than LLCs, including annual meetings, meeting minutes, state reports, and board resolutions.
Things to Know Before You Convert
Compliance obligations are set at the state level and vary significantly across the country. Here is what varies and why it matters.
1
The Difference Between S Corp Election and Legal Conversion
This is one of the most misunderstood points in business structuring. An S Corp election is a tax filing with the IRS. A legal conversion is a structural change filed with your state. They are different processes. You can have an LLC that has elected S Corp tax treatment, or a corporation that has elected S Corp status. Confusing the two leads to incomplete filings and unexpected tax outcomes.
2
Updating the IRS After Conversion
Your state conversion approval does not automatically update your IRS records; you must file separately with the IRS to change your federal tax classification. Skipping this step means your business continues to be taxed under its old structure even after the state conversion is complete.
3
Selecting the Right State Filing
If your business is registered in multiple states or operates in a state different from where it was formed, you need to confirm which state handles your conversion filing. Filing in the wrong state creates compliance gaps.
4
Understanding Ongoing Compliance Requirements
Corporations have more ongoing compliance requirements than LLCs. Annual meetings, meeting minutes, state reports, and board resolutions are standard. Going in with a clear picture of these requirements helps you stay on track after conversion.
Why 600,000+ Owners Trust Swyft Filings
Frequently Asked Questions
Speak directly with a Business Specialist, please give us a call at (877) 777-0450. We love to help!
Start Your Business Entity Conversion with Confidence
Converting your business structure affects your taxes, your compliance requirements, and how your business is positioned for growth. Swyft Filings manages the entire conversion process from document preparation to state filing to final approval. Tell us about the business you want to build, and we will handle the paperwork.