How do we proceed in converting an LLC to a corporation, I understand that the basic name will remain same or we can get an alternate name. As far conversion to corporate entity is concerned , what forms need to be filed with the IRS / State
State/Country relating to question: New Jersey
A few items need clarified:
Is this a single member LLC or a multimember LLC?
Has the LLC made an entity classification election previously, or not?
Does the entity have an EIN, or not?
Have tax returns been filed, or not?
Will the owners of the corporation be the same and have the same shares of ownership as in the LLC?
Thank you for the additional information to help us give an accurate answer.
Multi member LLC, Return filed previously - No classification election made - Does have an EIN. The owners will be the same.
A multimember LLC that is currently taxed as a partnership can elect to be taxed as a corporation for federal income tax purposes by filing Form Form 2553, Election by a Small Business Corporation within 75 days from the time that the LLC wants the change to be effective.
In New Jersey Form CBT-2553 is the state S corporation election form. Provide the same information in the form as was used for federal election information. The state election date is the same effective date requested on the Form 2553.
An entity that has an employer identification number (EIN) will retain that EIN if its federal tax classification changes under §(NNN) NNN-NNNN3.
So, to be taxed as a corporation file the federal 2553, the New Jersey CBT-2553 and continue to use the same EIN.
Please ask if you need more information or you are seeking to not only change the tax treatment but to actually dissolve the partnership to form a corporation (attorneys will be needed in that case).
I've prepared all types of taxes since 1987.