This is a pretty popular question asked by existing corporation businesses. The LLC is a much simpler entity to maintain and it offers a lot more flexibility when it comes to structuring ownership and management of a business.
Some states directly address this question. In these states the laws actually have a method for converting an existing corporation in that state into an LLC. This is usually done with the preparation and submission of certain filing documents with the state corporation agency. The specific details are outlined in these legal provisions so in order to do this properly, please consult a local attorney.
If there is no LLC conversion in your state, then there are a few other ways to accomplish this. The first one is to form an LLC and then merge the corporation into the new limited liability company. The merger process is addressed in the corporate and LLC statutes. This process can get technical so it is always advised to get the help of a business lawyer.
Another option for how to become a LLC from a corporation is to simply create a limited liability company and transfer all the business assets from the existing corporation to the newly created legal entity LLC.
In any case, when you are switching legal entities for an existing business, there is going to be a transition process.
