How to Convert Your Data Scientist LLC to C-Corp in Arizona (2026)

As your Arizona-based data science LLC grows and evolves, converting to a C-Corp might become a strategic move. This guide outlines the process for 2026, covering key considerations for data scientists, ML engineers, and analytics consultants, especially regarding taxes, equity, and data privacy.

When to Convert

Conversion Steps

  1. Board Approval and Plan of Conversion: Draft a plan of conversion outlining the terms and conditions of the conversion, including asset transfer, share allocation, and any necessary amendments to your operating agreement. Obtain approval from your LLC members or board of directors.
  2. Name Availability Check: Ensure your desired C-Corp name is available in Arizona by checking with the Arizona Corporation Commission (ACC).
  3. File Articles of Incorporation with the ACC: Prepare and file Articles of Incorporation with the ACC, including the corporate name, registered agent information, authorized shares, and the names and addresses of the initial directors. The filing fee is $60 as of 2024, but verify with the ACC for 2026.
  4. Notify the Arizona Department of Revenue: Inform the Arizona Department of Revenue about the conversion and obtain a new Transaction Privilege Tax (TPT) license if required. Review your TPT obligations as a C-Corp.
  5. Transfer Assets and Liabilities: Transfer all assets and liabilities from the LLC to the newly formed C-Corp. This includes bank accounts, contracts, intellectual property, and any outstanding debts.
  6. Issue Stock Certificates: Issue stock certificates to the former LLC members, reflecting their ownership in the C-Corp based on the agreed-upon terms in the plan of conversion.
  7. Update Licenses and Permits: Update all business licenses and permits to reflect the new C-Corp entity. This may include professional licenses, data processing permits, and other regulatory approvals.

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