Arkansas Corporation

What is an Arkansas Corporation?

An Arkansas Corporation is a business formation that can be formed by one or more people by filing the formation paperwork with the Arkansas Corporation Commission. The Arkansas Corporation will be used for various business purposes. Financial transactions, corporation ownership distribution and public offerings are a few examples. There are a few requirements to operate and form a Corporation in Arkansas legally.

Arkansas Corporation Requirements

1. State Filing Fee of $50.
2. A Registered Agent located in Arkansas. See our service here.
3. FTR Registration
4. Yearly FTR – Minimum $150
5. Beneficial Ownership Information Report filing. Report due after company formation starting January 1, 2024.

Arkansas Corporation Structure

AR Corporations are structured legally with the Arkansas Articles of Incorporation. Like many states, the document for a Corporation formation is short and simple.

The required information to be listed:

• Corporation Name
• Shares Information
• Registered Agent
• Incorporators
• Nature of Business

Arkansas Corporation Name

The name of the Arkansas Corporation will be the first article. The Arkansas Corporation name must contain the words “Corporation”, Incorporated”, “Company”, “Limited”, or the abbreviation “Corp.”, “Inc.”, “Co.”, or “Ltd.” or words or abbreviations of like import in another language.

Shares of Stock

Shares are an individual unit of ownership in a Corporation. The shares combined make up stock. The Arkansas state statutes require that the number of shares, class, series (if any) and the par value be listed on the incorporation document for an Arkansas Corporation.

Arkansas Registered Agent

An Arkansas registered agent service maintains a physical street address within the state, called a registered office. At this location, official business mail is accepted and signed for. Whenever documents are accepted, the client is contacted and the documents are forwarded in a timely manner. This service ensures that all legal notifications of impending lawsuits against your company reach you. When your agent accepts any document on your behalf, this is considered legal confirmation that you have been properly notified and are aware of any outstanding lawsuit. 

Incorporators

The name of each incorporator and the address of those incorporators are required information to be given.

Nature of Business

Give the primary purpose of the Corporation when forming a new Arkansas Corporation. Nothing that goes against Arkansas law is allowed.

How to File an Arkansas Corporation

Steps in forming an Arkansas Corporation:

1. Select a name for your Arkansas Corporation that conforms to state law. The name must include the words: Corporation, Incorporated, Company, Limited, or the abbreviation Corp., Inc., Co., or Ltd. The name cannot already be in use in the state by another entity. Do an Entity Name Search to check the availability of your name.
2. To form a corporation, you must file Articles of Incorporation with the Secretary of State. There is a $50 filing fee ($45 online).
3. When you incorporate in Arkansas, you must designate a registered agent to accept service of process and official business mail on behalf of your corporation. An agent is appointed on the Articles and must provide a physical street location located within the state where certified mail can be reliably accepted throughout the year.
4. With the incorporation complete, you need to write your corporate bylaws, the document which governs the ownership of your company and how your company operates. This is written by your initial shareholders.
5. You will need a business bank account to process all payments and debits. Business accounts must be opened in person. Most banks require copies of your Articles, bylaws and an initial resolution authorizing the individual to open the account.
6. Each year, your business must submit a Franchise Tax Report (FTR) by May 1 and pay a minimum annual fee of $150. The report can be filed online.
7. You must a file a Beneficial Ownership Information Report with the Financial Crimes Enforcement Network after formation, starting January 1, 2024. The BOI report is free to file and must be submitted online.

Additional Resources: 
How to Start an Arkansas Corporation
How to Form an Arkansas Corporation (paper option)

Is There an Initial Report?

No, there is no IR. But you are required to file a Corporate FTR registration form with your formation document. This is included in the link above.

Corporate Bylaws

Once your business is formed, you will need to write corporate bylaws, the document that outlines the ownership and operation of your company. This is an internal document written by your initial shareholders. They are not filed with any government agency.

Bylaws are specific to each corporation, but in general they cover: initial shareholders, rights and responsibilities of shareholders, initial directors (Board of Directors) and corporate officers (President, Vice President, Treasurer, Secretary), duties and responsibilities of directors and officers, annual meeting times and procedures, and a bylaw amendment process. The main purpose of a thorough and well-written governing document is to create a clear blueprint for how operations are conducted and to relieve confusion and managerial problems in the future.

Do I Need an Attorney to Incorporate?

No. An attorney can certainly help, especially if the organization of your corporation is particularly large or complex, but it is not a necessity. The majority of entrepreneurs start a business entity without the help of an attorney.

Arkansas Corporation Tax

Corporations are required to submit a FTR each year by May 1. There is a minimum $150 charge (based on the amount of authorized stock). Failure to file will result in ongoing penalties until the charge is paid. Avoid fee by paying on time every year.

Federal Beneficial Ownership Information Report Filing

Starting January 1, 2024, most newly-formed corporations are required to file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN) following company formation. On your report, you’ll need to disclose some basic details about your company and those with the most control over your corporation’s profits and operations. Save yourself from the additional paperwork with our $25 BOI report filing service.

Why Hire Corporate Filing Solutions to Form Your Arkansas Corporation?

Starting your Corporation in Arkansas shouldn’t be a hassle or a time consumer. That’s why we offer Filings Made Easy™ to make starting a Corporation in Arkansas super easy.

Hire us and relax while our filing experts form your new Arkansas Corporation. Our staff will process orders the same business day as they are received. To make things even easier, we bundle the first year of registered agent service and ensure your Arkansas Corporation comes fully equipped and ready to do its job.

Start your Corporation in Arkansas and get Registered Agent service for as low as $55 a year.