How to Convert Your Web Developer LLC to C-Corp in Alabama (2026)

As your web development business grows in Alabama, transitioning from an LLC to a C-Corp might become a strategic move. This guide outlines the key factors to consider when converting your web developer LLC to a C-Corp in Alabama in 2026, covering everything from legal steps to tax implications. Let Lovie handle the complexities of this conversion process, allowing you to focus on building cutting-edge websites and applications.

When to Convert

Conversion Steps

  1. LLC Member Approval: All LLC members must formally agree to convert to a C-Corp. Document this decision in meeting minutes or a written consent, following the procedures outlined in your LLC operating agreement.
  2. Name Availability Check: Ensure your desired C-Corp name is available in Alabama by checking with the Alabama Secretary of State's office. The name must be distinguishable from other registered entities.
  3. File Articles of Incorporation: File Articles of Incorporation with the Alabama Secretary of State, including the corporate name, registered agent information, the number of authorized shares, and the names and addresses of the incorporators. The filing fee is $200.
  4. Obtain an EIN: Apply for a new Employer Identification Number (EIN) from the IRS, as the C-Corp will be a separate tax entity from the LLC. This is required for tax reporting and payroll purposes.
  5. Transfer Assets and Liabilities: Transfer all assets and liabilities from the LLC to the newly formed C-Corp. This includes contracts, bank accounts, intellectual property, and any outstanding debts. Ensure client contracts are properly assigned to the new entity.
  6. Establish Corporate Governance: Create bylaws, appoint directors and officers, and issue stock certificates to shareholders. Hold an initial board meeting to formally adopt the bylaws and approve key corporate actions.
  7. Notify Relevant Parties: Inform clients, vendors, and other stakeholders of the business conversion. Update all business licenses, permits, and registrations to reflect the new C-Corp status.

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