Unit Contribution Agreement

When undergoing a conversion from an LLC to a corporation, many companies elect a "statutory conversion," which generally results in fewer administrative burdens on the company undergoing the conversion. This is a unit contribution agreement for use when a company undergoes a "non-statutory" conversion under Delaware law and allows for the members of an LLC to contribute their equity in the LLC (represented by units of membership interests) into the newly formed corporation, in exchange for stock in the corporation. Completing a company conversion may result in adverse tax consequences if not structured properly for your specific circumstances. Be sure to consult your attorney or tax advisor before undergoing any company conversion.