Entity Conversion in Kentucky

Conversion of LLC into Corporation

LLC-to-Corporation conversions are not permitted under Kentucky law. Instead, a new corporation can be created, and then the LLC is merged into the new corporation.

Conversion of Corporation into LLC

Corporation-to-LLC conversions are permitted under Kentucky law.

Process of Conversion

Prior to filing the necessary conversion documents with Kentucky Secretary of State, the corporation needs to hold meetings directors and shareholders (corporation) and officially approve the conversion.

Next, conversion document (special version of Articles of Organization) is filed with Kentucky Secretary of State, which reviews it, and if everything complies with the laws and requirement, approves and returns filed copy.

After conversion was approved by the state, a few additional steps are necessary to be made in order to complete the process, such as adopting operating agreement for resulting LLC, holding initial meetings, etc.

Finally, after the process of conversion is completed it is important to properly adjust company’s tax designation by the IRS, which is done by filing appropriate IRS form (Form 8832 or Form 2553, depending on situation). NOTE: It is important to discuss tax implications of conversion with your tax advisor prior to initiating the conversion.