In Colorado, it is possible to convert a domestic entity into another form of domestic entity. For example, Colorado allows a limited liability company (“LLC”) formed in Colorado to be converted into a Colorado corporation. Similarly, Colorado allows a domestic entity to be converted into a foreign entity (i.e., an entity formed under the laws of another state). For example, a Colorado LLC may be converted into a Nevada corporation.
The conversion process is mechanical and not difficult to achieve, but there are many business and tax issues that need to be considered in advance of making this decision. Additionally, the entity’s constituent documents and organic statutes need to be reviewed to determine the conversion requirements for the particular type of entity being converted.
HOW WE CAN HELP
Dennis M. Lanphier, Esq., CPA, LL.M., is an experienced business attorney and certified public accountant who can help you consider the issues necessary in making this decision and assist you in filing the appropriate documents to achieve your desired result.