Conversion of Entities 1

Periodically, the need arises to convert an entity from one form to another for a legitimate business purpose. For example, the owners may wish to convert a corporation to a limited liability company for allocation of profit and distribution of cash purposes. Some states, such as Delaware, permit this to be accomplished easily by statute.

Arizona has no such statute. So in Arizona. one way to deal with this issue would be to form a new limited liability company and then merge the corporation into the newly formed limited liability company. You come out at the same end result, but with a bit more expenditure of time and money.

Michael W. Margrave
mmargrave@mclawfirm.com
480-994-2000