Conversion – Bent Enterprise

What You Should Know About Company Conversion.

Companies are required to fulfill certain obligations to ensure that they don’t lose their businesses. Obligations like annual fees or having working registered agents have to be checked consistently to ensure that the state does not suspend or out rightly terminate your business.

A company’s termination is not always absolute and certain things can be done to return the company to its original state. After said changes have been put in place, it is necessary to file for business reinstatement in the state where the company operates.

Which State Allows All Conversions

A good number of states allow all types of conversions with no restriction. These states allow conversion from LLC to corporation and vice versa; Alabama, South Carolina, South Dakota, Tennessee, Texas, Virginia, Utah, Rhode Island, Washington, New Mexico, North Dakota, North Carolina, Georgia, Florida, Louisiana, Delaware, Colorado, California, Arkansas, Minnesota, Maine, Massachusetts, Michigan, Wisconsin, Ohio, Nevada, Wyoming, Idaho, Iowa,  and Hawaii.

Which States Have Certain Regulations?

Kentucky and West Virginia only allow LLCs to convert to corporations, but don’t allow corporations to convert to LLC. Alaska does the same with the exception of sub-companies.

The rest of the states out rightly don’t allow corporation. If you have businesses in these states you can’t convert from LLC to Corporations and vice versa. These states are New Jersey, New York, Pennsylvania, Vermont, New Hampshire, Nebraska, Montana, Mississippi, Maryland, Connecticut, Arizona, District Of Colombia, Missouri and Illinois.

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