Full conversion vs. partial conversion
When you convert your entire Traditional IRA, the existing IRA account and its LLC or trust are updated to Roth status. No new entity is required.
A partial conversion requires separate accounts for the Traditional and Roth portions. A new Roth IRA LLC or IRA Trust must be established to receive the converted portion. The assets or cash being converted move through a three-step ownership path: from the Traditional LLC or Trust back to the Traditional IRA at IRA Resources, then from the Traditional IRA to the new Roth IRA via the conversion, and finally from the Roth IRA into the new Roth entity.
Converting cash is significantly simpler than converting assets in-kind. If you are doing a partial conversion and have a mix of cash and alternative assets, converting cash first bypasses the valuation and re-titling complexity that will be associated with in-kind conversions.