Incorporating in Arkansas is just as easy as incorporating anywhere else.
Potential Name Conflicts
Often times when searching a state’s database a name may appear to be available because an exact name that was previously on file had been revoked. Many states will let you file with the same name as another revoked corporation at any time, though in the state of Arkansas, the corporation’s status must have been revoked for 7 years in order for the name to be available again. If articles of incorporation were filed with the state of Arkansas prior to December 31, 1999, then the name is not available for 15 years rather than the standard 7.
Corporation Annual filings
Not only are the filing fees in Arkansas minimal in the state of Arkansas, but the annual filing is also not much in comparison to other states, charging only $150 per year for the annual filing. The annual filing is required by every corporation to keep it in compliance with the state. The annual filing helps the state gather the current information on your Arkansas corporation. For example, if your registered agent has changed it’s very important for the state to have the updated information. If for any reason the corporation was to be named in a lawsuit the registered agent will be the one that is served documents on behalf of the company. If your annual filing is not completed, the state will be able to revoke your corporation status, so it’s important to keep up with that filing.
Is an Arkansas corporation too big of a responsibility?
When people think of a corporation they often think of huge companies like Arkansas based Wal-Mart Stores, Inc, otherwise known as the parent company to Walmart, who run countless ventures worldwide. It’s important to remember that most corporations are not as big as a corporate giant such as Walmart, and that they were even once a small corporation. Filing the articles of organization with the state does not mean you automatically have thousands of employees to be responsible for, keep your views in perspective when thinking about opening up an Arkansas corporation. Sure, when you file for a corporation there is more responsibility but it’s nothing that someone or a group of partners can’t handle on their own. If you need extra help or any other questions you can always give us a call.
Arkansas Corporation Advantages
There are many advantages to forming corporations, especially in Arkansas. Most people file for corporations because they want to protect their personal assets from their business. If a corporation is run correctly, meaning that all business is done separate from personal ventures, then liability of the business lies solely upon the corporation. Though there have been cases where the courts have pierced the “corporate veil” it’s rare that the court will do this, but you have to be sure that your corporation is running completely separate from your personal transactions in order to maximize your liability protection. We recommend that you speak with an Arkansas attorney or CPA in regards to whether an Arkansas Corporation is best for you.
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