How to Convert Your Real Estate LLC to C-Corp in Arizona (2026)

For Arizona real estate investors, transitioning your LLC to a C-Corp in 2026 can unlock new opportunities for growth and tax optimization. This guide provides a detailed roadmap for converting your real estate LLC to a C-Corp in Arizona, covering key considerations and steps. Let Lovie's AI guide you through the complexities of formation.

When to Convert

Conversion Steps

  1. Assess Your Current LLC Structure: Review your LLC's articles of organization, operating agreement, and financial records. Understand your current ownership structure, assets, and liabilities. Consider consulting with a legal professional to evaluate the implications of conversion.
  2. Develop a Conversion Plan: Outline the steps involved in the conversion process, including the transfer of assets, assignment of contracts, and amendment of governing documents. Determine the new C-Corp's authorized shares and initial shareholders.
  3. File Articles of Incorporation with the Arizona Corporation Commission: Prepare and file articles of incorporation with the Arizona Corporation Commission. The filing fee for a C-Corp is $60 as of 2024, but confirm the updated fee for 2026. Ensure compliance with all state requirements, including naming conventions and registered agent designation. Remember the publication requirement for LLCs does not apply to C-Corps.
  4. 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 and essential step for tax purposes.
  5. Transfer Assets and Liabilities: Officially transfer all assets and liabilities from the LLC to the newly formed C-Corp. This includes real estate holdings, bank accounts, contracts, and any outstanding debts. Ensure proper documentation for all transfers.
  6. Update Licenses and Permits: Update all relevant licenses and permits to reflect the new C-Corp structure. This may include real estate licenses, business licenses, and any other permits required for your specific real estate activities in Arizona.
  7. Adopt Corporate Bylaws and Issue Stock: Create corporate bylaws to govern the internal operations of the C-Corp. Issue stock certificates to the initial shareholders, reflecting their ownership percentages. Maintain accurate records of all stock transactions.

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