How to Convert Your Co-Founder Pair LLC to C-Corp in Alabama (2026)

As your Alabama-based co-founder LLC gains traction, the need for C-corp conversion might arise. This guide outlines the process for 2026, covering key considerations for co-founder dynamics, equity restructuring, and Alabama-specific regulations. Using an AI-powered platform like Lovie can streamline this complex transition, ensuring accuracy and efficiency.

When to Convert

Conversion Steps

  1. Co-founder Agreement Review & Amendment: Thoroughly review your existing LLC operating agreement and amend it to reflect the new C-corp structure, including equity allocation, roles, and responsibilities. This is especially critical for co-founder pairs. Lovie can help draft compliant amendments.
  2. Name Availability Check: Ensure your desired corporate name is available in Alabama by checking with the Alabama Secretary of State's office. The name must comply with Alabama's corporate naming requirements.
  3. File Certificate of Incorporation: File a Certificate of Incorporation with the Alabama Secretary of State, outlining essential information about the new C-corp, including its name, registered agent, and authorized shares. The filing fee is $200.
  4. Obtain an EIN: Apply for a new Employer Identification Number (EIN) from the IRS, as your LLC's EIN will no longer be valid for the C-corp. This is free and can be done online.
  5. Adopt Bylaws: Create corporate bylaws that govern the internal operations of the C-corp, including shareholder meetings, board of directors structure, and officer roles. Lovie's AI can generate customized bylaws.
  6. Issue Stock Certificates: Issue stock certificates to the co-founders according to the agreed-upon equity split, documenting the number of shares, class of stock, and any restrictions. Ensure compliance with Alabama securities laws.
  7. Transfer Assets and Liabilities: Transfer all assets and liabilities from the LLC to the newly formed C-corp, including bank accounts, contracts, and intellectual property. Ensure proper documentation for tax purposes.

Start your formation with Lovie — $20/month, everything included.