How to Convert Your Mobile Developer LLC to C-Corp in Arizona (2026)

As your mobile app development business in Arizona grows, converting your LLC to a C-Corp might be the right move. This guide provides a roadmap for Arizona mobile developers considering this transition in 2026, covering key steps, tax implications, and equity restructuring considerations. Lovie can help simplify this complex process with AI-powered formation, ensuring compliance and efficient management of your new C-Corp.

When to Convert

Conversion Steps

  1. Assess Your Business Needs and Consult Professionals: Determine if C-Corp status aligns with your long-term goals, considering factors like funding, taxes, and equity structure. Consult with an attorney and accountant familiar with Arizona business law to evaluate the pros and cons for your specific mobile app development business. Lovie can connect you with vetted professionals.
  2. Adopt a Plan of Conversion: Create a formal plan outlining the conversion process, including the exchange of LLC membership interests for C-Corp stock. This plan must be approved by the LLC members according to your operating agreement. Ensure compliance with Arizona Revised Statutes Title 29.
  3. File Articles of Incorporation with the Arizona Corporation Commission: Prepare and file Articles of Incorporation with the Arizona Corporation Commission, including the corporate name, registered agent, authorized shares, and incorporator information. The filing fee is $60 as of 2024, but confirm the latest fee schedule. Lovie can automate this filing for you.
  4. Obtain an EIN from the IRS: Apply for a new Employer Identification Number (EIN) from the IRS, as your LLC's EIN will no longer be valid after the conversion. This is a free process that can be completed online. Lovie can handle the EIN registration on your behalf.
  5. Transfer Assets and Liabilities: Transfer all assets and liabilities from the LLC to the newly formed C-Corp, including bank accounts, contracts, intellectual property (especially app source code), and any outstanding debts. Ensure proper documentation for all transfers.
  6. Issue Stock Certificates: Issue stock certificates to the former LLC members in exchange for their membership interests, as outlined in the plan of conversion. Maintain a stock ledger to track ownership and transfers. Consult with legal counsel to ensure compliance with Arizona securities laws.
  7. Update Licenses and Permits: Update all relevant licenses and permits to reflect the new C-Corp status, including your Arizona Transaction Privilege Tax (TPT) license and any app store developer accounts (Apple, Google Play). Failure to do so can result in penalties or disruption of your mobile app business.

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