California Senate Bill 49

California Senate Bill 49

In September of 2022, California enacted Senate Bill 49.  This bill, effective 1/1/2023, streamlines the process for a domestic California corporation to convert to a foreign corporation.  Currently, a domestic corporation in California cannot directly convert to a foreign corporation.  In contrast, other entity types (like Limited Liability Companies or LLCs) can directly convert.  Accordingly, for a domestic corporation in California to convert to a foreign entity, it must first convert to an LLC or other entity type which permits foreign conversion.  This bill establishes procedures for a domestic corporation to convert directly to a foreign corporation or a foreign business entity.

More information, including the text of the bill, can be found on the California Legislative Information website at Bill Text – SB-49 Corporate conversions. (ca.gov).