How do I Change a Nevada LLC to S Corp?
Conversion is a process that will allow a business entity to change the type of entity or even the state of formation or incorporation. This simply means that if you own a Nevada LLC then it can be converted to a C Corporation or an S Corporation. If you choose to convert LLC to S Corp in the state of Nevada then the good news is that the state does not require you to dissolve the existing entity (LLC) for purposes of conversion. Instead, the process of conversion is considered to be just a continuation of the business entity undergoing conversion.
What is the process of converting a Nevada LLC to S Corporation? How does the process work? We have created a guide to help you understand this process.
One of the first steps to convert LLC to S Corp Nevada is to create a conversion plan pursuant to NV Rev Stat § 92A.105 (2013). The conversion plan includes specific information like:
- Name of the LLC electing S Corp conversion
- Proposed name of the S-corporation
- State of formation or registration of the LLC
- Jurisdiction of the law that will govern the resulting entity
- Terms and conditions related to the conversion
- Complete text of the incorporation or charter documents of the resulting business entity
The conversion plan should lay emphasis on how the ownership interests in the existing LLC will be converted to the ownership of newly elected S-corporation.
Once you have created a plan of conversion, the next step is voting. If you are planning to convert a domestic LLC then the voting to convert LLC to S Corp will be governed by NV Rev Stat § 92A.150 (2013). The plan of conversion has to be approved by those members that own majority of the interest in the current profit of the LLC.
Articles of Conversion
To convert LLC to S Corp Nevada, the plan of conversion has to be approved. Once it has been approved, the resulting business entity will be considered to be a domestic entity and will have to file the following documents with the Nevada Secretary of State pursuant to NV Rev Stat § 92A.205 (2013):
- Articles of Conversion and it should set forth the name as well as jurisdiction of organization of the constituent entity and the resulting entity
- The approved plan of conversion to convert LLC to S Corp as adopted by the constituent entity in compliance with the law of the jurisdiction governing the constituent entity
- Location of plan of conversion, as in whether it is attached with the Articles of conversion
- The charter or incorporation document of the domestic resulting entity (S Corp) as required by applicable provisions of chapter 78, 78A, 82, 86, 87A, 88, 88A or 89 of NRS
- The information required pursuant to NRS 77.310, which is name and address of the Registered Agent appointed for service of process.
Conversion Fee and Submission
The fee for filing Articles of Conversion is $350 and it has to be mailed to the office of the Nevada Secretary of State in Carson City. The articles can be submitted through regular as well as expedited mail. In order to convert LLC to S Corp Nevada in the fastest possible time, you can also submit the documents physically at the counter, through fax, and online. You need to provide the “ePayment Checklist” along with the articles.
Note: It is important to provide a forwarding address so that the office of the Secretary of State of Nevada can send copies of process.
As Specialists in Entity Conversion, We can Guide you through the Entire Process!