Yes, legally a corporation can convert its status to an LLC at any time. Whether or not there is a tax consequence to this depends upon whether the corporation is a “C” corporation and either has taxable income or a net operating loss carry-over. The difference between a “C” corporation and an “S” corporation is a tax question only. They are both the same type of corporation formed under state law: an “S” corporation has elected to be treated as a pass-through so that its revenue is taxed at the individual shareholder level rather than at both the corporate and shareholder level, which is what a “C” corporation does. With that said, recognize that an LLC can be treated as either a taxed entity such as a “C” corporation, or a pass-through entity such as an “S” corporation. Therefore, there are few benefits to a corporation as against an LLC.