How to convert an S Corp to an LLC in Illinois?

Converting an S Corporation to an LLC in Illinois is a formal legal procedure to bring the entity in line with Illinois law. One IBC USA provides professional services to make the transition.

1. Approve the Conversion

The shareholders of the company are required to authorize the conversion under the bylaws of the company and Illinois corporation law.

2. Dissolve S Corporation

File Articles of Dissolution with the Illinois Secretary of State to formally dissolve the S Corp. Fulfill all final tax reporting and requirements before dissolving.

3. Form the LLC

File Articles of Organization with the Illinois Secretary of State to form the new LLC. Name a registered agent with a physical address in Illinois.

4. Obtain a New EIN

Get a fresh Employer Identification Number (EIN) from the IRS because the LLC will now be considered a new entity for taxation purposes.

5. Moving Assets and Contracts

Move business assets, contracts, and licenses from the S Corp to the newly formed LLC to operate without any legal complications.

6. Update Tax and Compliance Filings

By following these steps, companies can effectively convert to an LLC form while staying compliant. Professional advice guarantees a smooth and legally valid conversion.

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