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Once you do convert your business from an S-corp to an LLC, you will need to inform the IRS. Depending on your state, this conversion can be completed by forming a new LLC and merging the S-corp into the new business structure. In this case, the LLC will be a survivor in the merger.
California's Conversion Statute. In California, you can use a relatively new, streamlined procedure that allows you to convert from an LLC to a corporation largely by filing a single document with the Secretary of State.
Can I change my EIN from a sole proprietorship to an LLC? Yes, you can change the EIN from a sole proprietorship to an LLC. The Employer Identification Number (EIN) is a number issued by the IRS for tax purposes only.
As soon as the business has even one paying client, the owner is open to liability and should create an LLC or corporation to provide legal protection. The LLC or corporation provides a separation between the business assets and the personal assets.
California businesses are not legally required to obtain a certificate of status. However, your business may choose to get one if you decide to do business outside of California or get a business bank account.

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This document is called your formation document. It legally registers your limited liability company with the state. Once your Articles of Organization are accepted, your company will legally exist and be able to conduct business within the state.
If you have formed a corporation in California then it is important to understand that it is one of the few states that don't recognize conversion. Hence, it will not allow you to convert a California entity to a Delaware entity or a domestic corporation into a foreign corporation.
This means you'll: Form an LLC. Get a new EIN Number. Stop using your Sole Proprietorship. Cancel/withdraw your DBA (if applicable) Transfer any assets or property to your LLC. Update contracts and agreements. File a \u201cfinal\u201d tax return for your Sole Proprietorship. Open a new business bank account for your LLC.
Absolutely. There are a few different ways you can register your LLC in Delaware, including: Dissolution / formation \u2013 This is the most straightforward process, as you would simply dissolve your LLC in its current state of domicile (i.e. where it was formed), then setup a brand new Delaware LLC.
Once an LLC is formed, it is possible to convert it to an S Corp by making an entity classification election. To make a timely filed election, Form 2553 must be filed within two months and 15 days from the effective date.

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