How to Form a Company in Arkansas
The state of Arkansas has a lot to offer entrepreneurs. The state’s economy is growing and unemployment rates are low, making it an ideal place to set up shop. If you’re thinking about opening a company in Arkansas, we’ve gathered all the information you need right here!
Review Arkansas’ business requirements and laws.
Before you begin your company formation in Arkansas, it’s important to review the state’s business requirements and laws. These can vary from one state to another, so it’s best to know what you’re getting into before making any decisions.
Research the business name you want to operate under.
Before you can start your business, you need to choose a name. The state of Arkansas provides the following guidelines for choosing a business name:
- The name should be distinguishable from other names used by other corporations, limited partnerships and limited liability companies (LLCs).
- The name should not be too similar to that of another corporation, LLC or partnership doing business in Arkansas.
- It should not mislead the public as to its true identity or purpose. For example, if your company sells medical supplies and equipment but has “Hospital” in its title, this could lead customers to believe that your company is actually some kind of hospital when it isn’t; similarly if an attorney uses “Law Offices” instead of just “Attorney at Law” or something similar that clearly identifies him/herself as an attorney without giving any misimpression about what type of law he/she practices or where his/her office is located.
Choose a registered agent for your business.
Note: You must appoint a registered agent within the state of Arkansas. The person must be 18 years old or older and a resident of Arkansas. He or she can be an individual, corporation, LLC, partnership or trust.
The registered agent must have a physical address in Arkansas that’s open during normal business hours at least five days each week. It doesn’t have to be an office building; it could be a private residence as long as it meets this criteria.
Your company will also need to have access to his or her email address and phone number so that you can communicate with them if necessary (i.e., if someone has questions about your taxes).
Apply for an EIN number with the IRS.
An Employer Identification Number (EIN) is a nine-digit number that’s used to identify you as an employer. You’ll need it to file your business taxes with the IRS, apply for tax-exempt status and open up a bank account. It’s not necessary to get an EIN before forming your business; instead, you can wait until after you’ve started selling products or services.
However, we recommend getting one as soon as possible because it will make life easier later on when it comes time to file taxes and apply for other licenses. Here’s what you need to do:
- Go online and visit the IRS website at irs.gov/businesses/. Scroll down until there’s a section called “Starting a Business” and click on “Employer ID Numbers (EIN).” This page contains everything that you need in order to apply for an EIN number: links where you can get started with each step of the process; information about what documents are required; information about how long each step takes; etcetera.* Fill out Form SS-4 online by clicking on “New Filing” at https://www*enterpriseenrollmentcenter*.irsbizconnection/?scope=S&zir=D&COLLID=15383357
Decide on your form of organization.
Choosing a business structure will depend on the type of company you are starting and how much control you want over it. The following types of businesses are available to form in Arkansas:
- Limited liability company (LLC)
- Limited partnership
- General partnership (GP)
- Sole proprietorship
File the necessary documents for your Arkansas business entity.
After you’ve completed and filed your articles of incorporation, you’ll need to file the following documents:
- Certificate of Organization. This certificate must be filed with the Secretary of State within 30 days after receiving your Articles of Incorporation. It states that you are legally organized as a corporation or LLC in the state of Arkansas.
- Certificate of Designation. This document was previously called Articles of Amendment and will indicate any changes made to your company since it was established (for example, if there were changes made to the number or location of shareholders). All organizations must amend their articles every two years unless they’re exempt from doing so due to annual revenue less than $100 million USD or assets less than $500 million USD—in which case they can wait until their next fiscal year begins before filing an amendment.
- Certificate(s) Amendment(s). These documents allow you to amend various provisions found within your original articles such as name, purpose statement, registered agent information and so on; however, some changes required by law may not be reflected here (such as when a company needs its tax ID number). Common reasons for making amendments include adding new shareholders; changing management structure (e.g., switching from sole proprietorship structure into LLC); increasing/decreasing authorized capital stock; increasing authorized shares issued etc… It’s also worth noting that these amendments cannot eliminate any restrictions placed upon shareholder rights mentioned within original articles such as limiting transferability or prohibiting certain types/amounts ownership interests being held by one person.”
Publish a notice of your intent to form the entity in an Arkansas newspaper.
First, you must publish a notice of your intent to form the entity in an Arkansas newspaper. The notice must be published for four consecutive weeks and contain at least:
- The name of the entity and its purpose
- The address where it will conduct business
- A statement that says no stockholder or director has authority as an agent or representative of any other person or entity
- The names and addresses of all directors, officers, shareholders and members
Register with the Secretary of State’s office and pay the required fees.
Register with the Secretary of State’s office and pay the required fees.
The Arkansas Secretary of State’s office is in Little Rock, Arkansas. The Arkansas Secretary of State is the official record keeper for all businesses in Arkansas. It can be reached at 501-682-2000 or by email at email@example.com
Open a bank account in your company name.
You need a bank account (or several) in your company name.
- Business checking account: You’ll be paying bills and making deposits with this account. Make sure to pay all of your employees through payroll services like Paychex or ADP so that you don’t have to keep running down to the bank every time someone needs a check cashed.
- Business savings account: Leave some cash in the safe for emergencies, but most of the money should go into an investment vehicle like an IRA or 401(k) plan. It’s better if you can invest more of it because it will grow over time and provide a higher return than keeping cash on hand would. Don’t forget about your state’s small business loan fund! Some states even offer grants instead of loans—check out how much money you qualify for by visiting our Small Business Grants page!
Complete any other requirements to officially open your business in Arkansas.
Once you’ve filed the necessary documents with the state, it’s time to register your company with the Secretary of State. The registration process takes about 15 minutes and costs $50. You’ll need an Arkansas address on file in order to complete the registration, which can be arranged through any number of online providers or by calling a local business supplier directly.
Once you’ve paid your fees and created an account with us, you will receive an email prompting you to provide information about what type of business entity you have formed (LLC vs Corporation vs Sole Proprietorship). Next, you’ll be asked for basic information such as what name(s) we should use when doing business; this is where we come up with our company name if we haven’t already done so previously. Throughout this process, don’t forget about important details like registering for a tax identification number (EIN) with the IRS – this step isn’t mandatory but will save some red tape later on down the road!
You can easily open a company in Arkansas by taking these steps
You can easily open a company in Arkansas by taking these steps:
- You need to do a lot of research. To start your business, you’ll probably want to learn as much as possible about how to form an LLC and how to register with the state. This will help ensure that your company is up-to-date on their taxes and has everything it needs from the state.
- You need to find a registered agent. A registered agent is someone who acts as the point of contact for the government when it comes to filing any legal documents for businesses or individuals who live in Arkansas (or any other state). The law requires every business entity that does business in Arkansas must have one designated person who can receive legal documents on behalf of all shareholders, partners or members of an LLC or corporation – he or she must live within 90 days from receipt of such notice.*
If you’re looking to start a business in Arkansas, we hope this article has been helpful for you. There are a lot of steps involved in forming an LLC, but by following these instructions closely and doing some research before hand, everything should go smoothly. Remember that the state of Arkansas has strict requirements when it comes to filing taxes or paying fees so make sure all paperwork is correct before submitting anything!