What is an Entity Conversion and can I convert my sole proprietorship or partnership to a limited liability company (LLC) or corporation?

An entity conversion is a filing that is made with the state of incorporation that allows a company to change from one business type to another. As an example, if a business was originally formed as a limited liability company (LLC) and the owner wishes to change the structure to a corporation, they may wish to file a conversion as opposed to forming a completely new business.

If you are a sole proprietorship, you can become a corporation or LLC, but it is not considered a conversion. You need to incorporate your business as a corporation or LLC and transfer the assets of your old company into the newly-incorporated business. For more information on entity conversions, contact BizFilings.