If done correctly, conversion preserves continuity, meaning contracts, tax IDs, and operating history typically remain intact.

This is common when raising venture capital, preparing for an IPO, or offering equity compensation, since investors typically require the C-Corp structure.

Corporate conversion is the legal process of changing your business from one entity type to another, such as from an LLC to a C-Corporation, without dissolving and starting over.

You may face fines, be barred from bringing lawsuits in that state, and raise red flags with investors during due diligence.

It allows states to require sales tax collection from businesses with no physical presence, if sales exceed state-specific thresholds.

Yes. Even one employee working from another state may create a tax or registration obligation in that state.

It means registering your company to legally operate in a state other than your state of incorporation.

No. An EIN is for business entities, while a Social Security Number is for individuals. However, the responsible party must provide their SSN or ITIN when applying.

Online applications are processed immediately. If you file by mail, it may take up to four weeks.

You should incorporate first. The IRS requires your legal entity details from your incorporation certificate to process your EIN application.

Failing to complete essential post-incorporation documents can create legal disputes, ownership confusion, and tax complications. It may also discourage investors who expect proper documentation to be in place.

Yes. Employees, contractors, and consultants who contribute to product development or intellectual property should sign a CIIAA to ensure the company owns all IP rights.

The 83(b) election allows founders to pay taxes on stock at the time of grant, which can save significant money if the company’s valuation increases in the future.

Bylaws are critical because they establish how the corporation is governed and how decisions are made. However, other documents like stock purchase agreements and the 83(b) election are equally important for founder protection.

Yes. If your startup is registered to do business in multiple states, you must appoint a registered agent in each jurisdiction.