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Generally, an S corporation and LLC both offer limited liability protection to business owners and are taxed as pass-through entities. However, sometimes you need to switch from an S corporation to LLC status due to specific situations. This guide will talk about how to change an S corporation to LLC in all 50 states.
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If you are confused between LLC vs. S corp, here are some reasons you must take into account while converting S corp into LLC:
Most states allow an S corporation to directly convert to an LLC through a process called Statutory Conversion. Only a few states do not have the statutory conversion option in their jurisdiction, and they are listed below:
You have to look for alternatives such as non-statutory conversion and LLC merger in such states. Business owners who do not want to directly convert their S corporation to an LLC due to any reason can also change their corporation to LLC using these alternatives.
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