How to Form a C-Corporation in Arkansas
Arkansas is a southern U.S. state bordering the Mississippi River. Known for its abundant park and wilderness areas, Arkansas’ terrain encompasses mountains, caves, rivers, and even hot springs. Six Fortune 500 companies are based in Arkansas, including the world’s #1 corporation, Walmart.
When beginning to form a C-Corporation in the state of Arkansas, you must complete the following requirements:
- Select a business name according to requirements
- File all necessary articles of incorporation and submit filing fees
- Fulfill registered agent requirements
- Register your federal tax ID number with the IRS
- Complete annual reports
- Establish at least one director
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Select Business Name According to State Requirements
- Arkansas requires corporations to have names that cannot be confused with any reserved or registered corporate names or forced fictitious names.
- The corporation’s name must contain the word “Corporation,” “Incorporated,” “Company,” “Limited” or an abbreviation thereof. It may not contain language stating or implying the corporation is organized for other business purposes and must be distinguishable from names in use by certain other enumerated entities.
- Arkansas corporate names may be followed by several approved designations, including:
- Co.
- Company
- Corp.
- Corporation
- Inc.
- Incorporated
- Limited
- Ltd.
- The use of certain words and phrases in corporate names is considered “restricted” in Arkansas, meaning they require special approval by the state. These include:
- Bank
- Banking
- Engineering
- Insurance
File Articles of Incorporation and Submit Filing Fees
- The state of Arkansas requires businesses to file Articles of Incorporation as well as a Franchise Tax Registration.
- The fee is $45 online, $50 by mail.
- Turnaround time for incorporating a business in Arkansas is 3-5 business days.
- Follow-up filings are not required.
Fulfill Registered Agent Service Requirements
- Corporations must list the name and address of a registered with a physical address (no post office boxes) in Arkansas.
- The registered agent must be available during normal business hours to accept important legal and tax documents for the business.
Register Your Federal Tax ID Number
- An EIN is required for corporations that will have employees. Additionally, most banks require an EIN before opening a business bank account.
Complete Annual Reports
- Corporations must file the Arkansas Annual Franchise Tax (like an annual report) with the Arkansas Secretary of State by May 1st.
- The franchise tax rate is 0.3% of the value of your corporation’s outstanding stock, which is at least $150.
- Turnaround time at the state is one business day.
- Annual reports may be signed by the company President, Vice President, Secretary, Treasurer or Controller. Emailed or faxed signatures are not accepted.
- Filing extensions are not permitted.
Establish at Least One Director
- Corporations must have no less than 3 directors unless there are only one or two shareholders of record. In that case, the number of directors may be less than 3 but not less than the number of shareholders of record.
- Arkansas does not have a provision specifying where directors must reside.
- Arkansas does not have age requirements.
- Director names and addresses are not required to be listed in the Articles of Incorporation.
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incorporation. Request a consultation with one of our specialists!