Want to Change the Type of Entity You Use?
If you currently operate your business as a Nevada corporation, for example, but would like to change it to a Nevada limited liability company, what do you do? Do you have to close the corporation and open a brand new LLC? Or can the corporation be converted to an LLC, thereby maintaining the longevity of the business?
Fortunately, Nevada provides a process for converting from one form of business entity to another. You can simply convert your corporation into an LLC.
To complete this process, the company needs to adopt a Plan of Conversion, which needs to be approved by the appropriate resolution. Articles of Conversion must then be filed with the Nevada Secretary of State’s office together with the charter document for the new entity. The new entity is referred to as the “resulting entity” by the State. And the charter document for an LLC, for example, would be the Articles of Organization.
As people realize the benefits of LLCs and Series LLCs, the most common conversion we see is that of converting an existing corporation into a limited liability company.
What about moving your business from another state to Nevada?
Maybe you’ve recently moved to Nevada and wonder whether you must open a new company in order to move your business entity from the old state? Or can you transfer your business from the old state to Nevada?
If you would like to continue the business entity, you can just transfer the business to Nevada. This process is called “Domestication.” You are domesticating the business from the old “foreign” state to Nevada. Similar to conversion explained above, you will want to authorize the move with the proper company resolutions. Then you will file Articles of Domestication with the Secretary of State along with the proper constituent documents, ie. Articles of Organization or Articles of Incorporation, as the case may be.
If you have questions about moving your company to Nevada or converting it from one type of entity to another, give us a call to set up a free initial consultation.