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

So, you and your co-founder started an LLC in Arizona. Now, as you look towards 2026, you're considering converting to a C-corp. This is a significant step, often driven by the need to attract investors or offer stock options. This guide will walk you through the process in Arizona, highlighting key considerations for co-founder pairs and how Lovie can streamline the transition.

When to Convert

Conversion Steps

  1. Assess Your Current LLC Structure: Review your LLC's operating agreement, member contributions, and any existing liabilities. Understand the implications of converting these assets and liabilities to a C-corp.
  2. Create a Conversion Plan: Outline the steps involved in the conversion, including the transfer of assets, liabilities, and equity. Define the new C-corp's capital structure and stock allocation for you and your co-founder.
  3. Adopt a Plan of Conversion: Formally document the plan of conversion, outlining the terms and conditions of the transition from LLC to C-corp. Both co-founders must approve this plan.
  4. File Articles of Incorporation with Arizona Corporation Commission: Prepare and file the Articles of Incorporation for your new C-corp with the Arizona Corporation Commission. The filing fee is currently $60, but check for updates in 2026.
  5. Obtain an EIN from the IRS: Apply for a new Employer Identification Number (EIN) from the IRS for your C-corp. This is a free process and can be done online.
  6. Transfer Assets and Liabilities: Transfer all assets and liabilities from the LLC to the newly formed C-corp. This includes bank accounts, contracts, and intellectual property.
  7. Notify Relevant Parties: Inform customers, vendors, and other stakeholders of the conversion from LLC to C-corp. Update all business documents and registrations accordingly.

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