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A corporation is a complex business structure that can be formed for profit or nonprofit purposes. It is managed by elected officers and a board of directors and treated as a separate entity. This means that a corporation exists apart from its owners or shareholders, with its own rights, liabilities, and privileges.
There are many steps to forming your corporation in Arkansas. Learn how to get started by following our comprehensive step-by-step guide below.
1Name your corporation
2
Appoint directors
To start a corporation in Arkansas, you must file the Articles of Incorporation with your state’s Secretary of State office. This legal document officially forms your corporation, but there are many other steps to take before and after filing it.
To simplify forming a corporation in the state of Arkansas, we’ve put together 10 easy steps for you to form your business:
After you’ve decided to form a Corporation, the next step is to name your new business. It seems like a simple thing to do; however, you must consider requirements set forth in Arkansas naming laws. For example, the name must contain one of the following words or abbreviations:
By law, the name can’t have any words that imply the business is organized for any other purpose than what is stated in your Articles of Incorporation. The name you want to use must also be distinguishable from:
You must do a name availability search before filing your Articles of Incorporation. This is also the time to conduct a domain name search to see how the name translates to use as a website address. Since there may be a period between deciding on a name and officially forming your business, it’s a smart move to reserve the available name so that no one else can use it.
An Arkansas Application for Reservation of Entity Name can be filed online for $22.50 or through the mail for $25. The name reservation is good for 120 days. If necessary, it can be renewed one time for another 120 days.
Our ZenBusiness team can help you with this process and reserving a domain name, too.
The corporation’s name can’t infringe on anyone else’s trade name, trademark, or service mark rights at the state and federal levels. A trade name, also known as a fictitious name or “doing business as” (DBA) name, is any name under which you plan to do business that isn’t exactly like the name you registered with the state.
If you plan to use a trade name, file an Application for Fictitious Name with the Arkansas Secretary of State for $22.50 online or $25 by mail. You must also submit a copy of the returned application with the county clerk of the county where your registered office is located, except in Pulaski County.
A trademark is a symbol, phrase, word, or a combination of such that represents your company’s goods, while a service mark represents your services. Searching state trademark records and those of the United States Patent and Trademark Office (USPTO) are necessary to determine name availability. You should do this before registering your corporation name, applying for a fictitious name, or reserving a domain name.
Once your corporation’s trademark or service mark is in use, you have the option to register a mark in Arkansas and at the federal level with the USPTO. State registration costs $50 and is good for five years. Federal registration costs $225 or $275 per class of goods/services, depending on how you complete your application; it must be renewed every 10 years.
It is often easier and quicker to register a trademark at the state level, but the federal level can offer broader protection, which is valuable to corporations wanting to do business outside of Arkansas.
A registered agent is an individual or entity appointed to receive service of process and other legal notices for your corporation. You’ll want to choose an agent who is available at all times during regular business hours. They’ll also need a physical address in Arkansas or be authorized to provide agent services in the state.
Arkansas requires you to appoint a registered agent when filing your Articles of Incorporation. If your corporation fails to appoint or maintain an agent, the Secretary of State will act as the company’s registered agent by default.
You can be your own registered agent, but there are many reasons you might want to hire a registered agent service through ZenBusiness. We also provide a permanent address for your business. Our team will help you to stay organized, meet deadlines, and keep in compliance.
To form a corporation in Arkansas, incorporators file the Articles of Incorporation with the Secretary of State. This legal document officially forms your company and provides the state with many important details about your new business. The articles are sometimes called the Certificate of Incorporation or the Corporate Charter.
You’ll want to file the Articles of Incorporation in Arkansas if it’s going to be the main location for your business operations. You’ll need the following information to file your articles:
Additional space is provided on the form for more details about shares. Shares of stock are units of ownership interest in a company. Those who invest in the company and own shares are called shareholders. You may choose to issue the following:
The number of shares your board of directors may issue is called authorized shares. In Arkansas, the corporation creates and issues the number of shares of their choosing in their Articles of Incorporation. Your board of directors determines increasing or decreasing shares after this point.
A fee of $45 is charged when filing your Articles of Incorporation online. You can also file a paper copy through the mail for $50. You’ll send the document to:
Arkansas Secretary of State
1401 W. Capitol, Suite 250
Little Rock, AR 72201
For faster filing services, choose to file through the Secretary of State’s corporation online filing system. A corporate franchise tax form will need to be filled out and submitted along with your articles, so the state can send you the correct annual tax reporting form.
Your bylaws are so important to your success that it’s a good idea to look for assistance when creating them. Consider using our ZenBusiness corporate bylaws template, which comes with comprehensive guidelines. You’ll get a valuable tool to help you create the structure and rules for your business confidently.
Stock shares are a way for others to invest in your company. You can also issue shares to others as compensation for helping you to start your business. Issuing shares of stock is a requirement for all corporations. You must keep track of how many shares have been issued and to whom.
When you filed your Articles of Incorporation, you listed the number of authorized shares your corporation planned to issue. How many shares your corporation issues will be less than or equal to that number.
There are two ways to issue stock, privately and publicly. Private stock is usually issued to founders, managers, or employees. It can also be issued to a private group of investors. If you issue stock publicly, that means a portion of your stock shares is available to be purchased by the public. Public corporations must file quarterly statements with the U.S. Securities and Exchange Commission (SEC).
Whether public or private, a share is issued only once. However, it can be traded or sold in the future. To learn more about state regulations, contact the Arkansas Securities Department.
There is a wide variety of permits and licenses required at the federal, state, and local levels. You may need additional permits or licenses to legally operate in Arkansas, depending on your occupation or corporation’s business operations.
In Arkansas, you even need to check with the proper town or city and county authorities. There isn’t a statewide general business license, but some local governments require one. Since there isn’t a one-stop shop for all licenses and permits, it may be best to hire a service like ZenBusiness to research your requirements.
EIN stands for Employer Identification Number. It’s issued for free by the Internal Revenue Service (IRS) for identification and tax purposes. You’ll need one to do things such as open a business banking account, hire employees, and pay federal taxes.
You can apply for an EIN online to immediately receive your number. Other options include calling the IRS Business and Specialty Tax Line at 800-829-4933 or hiring ZenBusiness to file for an EIN for you.
In addition to federal taxes, Arkansas corporations must file annual corporate franchise reports and pay corporate franchise taxes to the Arkansas Secretary of State. For-profit corporations also need to file a return with the Arkansas Income Tax Division.
Your corporation’s first report to submit to the state is a corporate franchise tax report. Corporations with stock must pay 0.3% of the outstanding capital stock, with a minimum of $150, while corporations without stock pay $300. The fee is the same whether you file online or on paper.
The report and your taxes are due on or before May 1 each year. You can complete a corporate franchise tax report online or fill out a paper copy and mail it to:
Business and Commercial Services Division
P.O. Box 8014
Little Rock, AR 72203
A nonprofit corporation must file an Annual Report for Nonprofit Corporation by Aug. 1 of each year. It can be filed for free online or by mail.
The cost to start a corporation in Arkansas is at least $45. This is for the Articles of Incorporation filing fee ($45 online or $50 on paper). There will likely be additional expenses. Templates for corporate bylaws and the shareholder agreement will add small extra costs. More expensive costs include trademark registrations, permits, licenses, and recurring costs, such as filing annual reports.
But perhaps the biggest cost is in time, headaches, and worry caused by dealing with government bureaucracy. We can help you navigate the red tape. ZenBusiness can assist your small business in Arkansas every step of the way. Our goal is to make it easier for you to start, run, and grow your business.
| Do-It-Yourself (DIY) | ZenBusiness Starter Plan |
|---|---|
| Articles of Organization (state filing fee) | |
| $100 | $100 |
| ZenBusiness filing | |
| N/A | $49 |
| Average Filing Time | |
| ??? | 2-3 weeks |
| Registered Agent | |
| +$159/yr | |
| Operating Agreement | |
| +$35 | |
| Name Reservation | |
| +$10 | |
| Accuracy Guarantee | |
| | |
| TOTAL COST | |
| Do-It-Yourself (DIY) | ZenBusiness Pro Plan |
|---|---|
| Starting Price | |
| state fee | $199 + state fee |
| Average Filing Time | |
| 2-3 weeks | 5-8 business days |
| Registered Agent | |
| +$99/yr | |
| Operating Agreement | |
| +$35 | |
| State Compliance Help | |
| $119/yr | |
| EIN | |
| +$70 | |
| DOMAIN NAME | |
| +$25 | |
| DOMAIN PRIVACY | |
| +$10 | |
| BUSINESS WEBSITE | |
| +$100 | |
| BUSINESS EMAIL ADDRESS | |
| +$25 | |
| SHOW ALL DETAILS | |
| Do-It-Yourself (DIY) | ZenBusiness Pro Plan |
|---|---|
| Starting Price | |
| state fee | $199 |
| Average Filing Time | |
| 15 business days | 5-10 business days |
| Registered Agent | |
| +$249/yr | |
| Operating Agreement | |
| +$99 | |
| State Compliance Help | |
| $280/yr | |
| EIN | |
| +$60 | |
| DOMAIN NAME | |
| +$25 | |
| DOMAIN PRIVACY | |
| +$10 | |
| BUSINESS WEBSITE | |
| +$100 | |
| BUSINESS EMAIL ADDRESS | |
| +$25 | |
| SHOW ALL DETAILS | |
| LegalZoom Standard Package | ZenBusiness Pro Plan |
|---|---|
| Starting Price | |
| $329 | $179 |
| Average Filing Time | |
| 15 business days | 5-10 business days |
| Registered Agent | |
| +$159/yr | |
| Operating Agreement | |
| +$99 | |
| State Compliance | |
| $280/yr | |
| EIN | |
| +$60 | |
| SHOW ALL DETAILS | |
Let us take care of the unpleasant paperwork, allowing you to stay focused on your business’s future. With our business formation services, you won’t have to worry about mailing in documents: We’ll handle each step with the state, and let you know when your corporation becomes official. Our work is quick and affordable, saving you a lot of headaches at an extremely low price.
How a corporation is taxed in Arkansas depends largely on the tax structure you choose when filing your federal taxes. Corporations in Arkansas can be taxed as:
Corporations must also pay an annual franchise tax to the Arkansas Secretary of State. If you have employees, you’re required to pay unemployment insurance tax and employee withholding tax. If you sell taxable goods or services, a state sales and use tax will be levied against your business. Local city or county authorities may also levy a sales and use tax. For more information about taxes, visit the Arkansas Office of Income Tax Administration.
Yes, there is more administrative upkeep with a corporation than with other business types, such as an LLC.
To change your corporation’s name, you’ll need to file a Certificate of Amendment to change your Articles of Incorporation. The cost is $45 online and $50 on paper. Another less expensive option is to file an Application for Fictitious Name for Domestic Corporation for $22.50 online.
Only one person is needed to form an Arkansas corporation, although there may be as many as you like. All incorporators must be at least 21 years old.
Yes, you can file every form needed to start your corporation online through the Business and Commercial Services Department of the Arkansas Secretary of State.
To dissolve an Arkansas corporation, the Articles of Dissolution need to be filed with the Secretary of State. If the original incorporators or initial directors are dissolving the corporation, they need to file a dissolution form. Either form costs $45 to file online or $50 to file a paper copy.
Are you looking to incorporate in the state of Arkansas? ZenBusiness can assist you through every step of running and growing your Arkansas business from the ground up.
Are you already an Arkansas small business owner? Learn how ZenBusiness can help you run or grow your Arkansas small business today!
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