How to Register a Business in Arkansas

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TLDR

Numerous entrepreneurial programs and incubators exist in Arkansas. All are focused on building a thriving startup ecosystem across the state.
Arkansas is also small business-friendly, with over 250,000 small businesses, employing over 490,000 people.
When you register your startup in Arkansas, you’ll need to satisfy several legal requirements to register your business correctly. However, before registering your startup, it’s a good idea to plan ahead, for example, researching the market and potential competitors, mapping out your financing, planning for operations and personnel, and creating a business plan.
You must also determine your organization’s legal ownership structure. Popular structures include sole proprietorships, limited partnerships, limited liability partnerships, limited liability companies (LLCs), C-corporations, and S-corporations.
When you’re ready to register your startup, depending upon your chosen business structure, Arkansas requires you to choose a unique business name, differing from any other registered businesses in the state. In addition, you must follow Arkansas’s business naming conventions, which help make your startup’s name distinguishable. To confirm if your startup’s name is different from other registered businesses, you can use Arkansas’s online business entity search tool.
You’ll also need to select and continuously maintain a registered agent who is “the ‘mailbox’ of the corporation.”
Depending upon your chosen business structure, you’ll need to register with the Arkansas Secretary of State before commencing operations in the state. You may file your formation forms by U.S. mail, in person at Arkansas’s Secretary of State’s Office, or online through Arkansas’s online portal. Additionally, you’ll need to file the appropriate filing fee along with your formation documents. Paying the wrong amount can result in the return of your documents, further delaying your startup’s formation.
With online filing options, you can register your Arkansas startup in as little as a few hours. However, if you mail in your registration forms instead, you may have to wait a few days for your startup to be up and running officially.

Known for catfish, hot springs, and the southern Ozarks, Arkansas has a supportive, robust entrepreneurial ecosystem.

Numerous entrepreneurial programs and incubators exist in Arkansas, including StartupNWA, the Arkansas Research and Technology Park, Genesis Tech Incubator, Bioventures, and the ICBA Thinktech Accelerator, to name a few. All are focused on building a thriving startup ecosystem across the state.

Arkansas is also small business-friendly, with over 250,000 small businesses, employing over 490,000 people, according to the U.S. Small Business Association (SBA). Top small business industries include construction; health care and social assistance; professional, scientific, and technical services; accommodation and food services; and retail trade. And with Walmart’s corporate headquarters in Bentonville, it’s no wonder that retail trade is a top industry.

As a startup founder, if you consider registering your business in Arkansas, this article will walk you through what you need to know.

How to Register a Business in Arkansas

When you register your startup in Arkansas, you’ll need to satisfy several legal requirements to register your business correctly. However, before registering your startup, it’s a good idea to plan ahead, for example, researching the market and potential competitors, mapping out your financing, planning for operations and personnel, and creating a business plan.

The creation of a business plan is critical to your startup’s growth. Think of it as the foundation of the house you’re building. In drafting your business plan, you’ll want to consider marketing, advertising, sales, location, and ownership, to name a few categories. To help guide you, you can check in with the U.S. Small Business Administration, providing additional guidance for creating a business plan.

Once you’ve identified some of your business’s operation basics, it is then time to register your startup. Below, we’ll walk you through the steps necessary to register your business in Arkansas.

Determine Your Business’s Entity Structure

Before you register your startup in Arkansas, in addition to creating a business plan, you must also determine your organization’s legal ownership structure. Popular structures include sole proprietorships, limited partnerships, limited liability partnerships, limited liability companies (LLCs), C-corporations, and S-corporations.

Let’s look at some structures more specifically. A corporation, for example, is “a more complex form of business organization. The corporation is a legal entity and exists apart from its owners or shareholders. As a separate entity, the corporation has its rights, privileges, and liabilities apart from the shareholders, officers, and directors. A corporation can buy and sell property, enter into contracts, sue, and be sued. Elected officers and its board of directors manage the corporation.”

In Arkansas, a partnership is “an association of two or more persons acting as co-owners of a business and can be created by an oral or written agreement between the parties involved, among other methods. However, a written agreement is highly recommended. This agreement should set out the responsibilities and obligations of the partners as well as the percentage of ownership.”

On the other hand, an LLC “combines many favorable characteristics of corporations and partnerships. The LLC provides limited liability to its members.”

In Arkansas, certain businesses are not required to be registered with Arkansas’s Secretary of State, such as sole proprietorships. A sole proprietorship, for example, is a business “with a single owner with no formal or separate form of business structure is known as a sole proprietorship. The owner has sole control and responsibility for the business. A sole proprietorship is easily formed, allows important decisions to be made quickly, and typically has fewer legal restrictions. In this situation, the owner and the business are indistinguishable. The business has limited life and cannot be transferred (as an entity) to others.”

Your chosen business entity determines the next steps in registering your Arkansas startup. Read on to learn about the next steps.

Choose the Name of Your Startup

When you’re ready to register your startup, depending upon your chosen business structure, Arkansas requires you to choose a unique business name, differing from any other registered businesses in the state. In addition, you must follow Arkansas’s business naming conventions, which help make your startup’s name distinguishable.

To confirm if your startup’s name is distinguishable from other registered businesses, you can use Arkansas’s online business entity search tool.

Remember, this is only a preliminary search for a similar business name. Once you file your startup’s registration, another name availability search will be conducted when your application is processed.

Suppose you’re not quite ready to register your startup, but you’d like to preserve your startup’s name. In that case, you can file a name reservation application with Arkansas’s Secretary of State’s office, along with a $25 filing fee. You may keep your business name reserved for 120 days.

Identify Your Registered Agent

You’ll also need to select and continuously maintain a registered agent who is “the ‘mailbox’ of the corporation.” More specifically, a registered agent is an individual or an “entity designated by the corporation to receive any service of legal action or other official communication on its behalf. The registered agent may or may not be an owner, shareholder, or officer of the corporation. Many corporations use their attorney or a professional corporate service company for this service.”

In Arkansas, the registered agent’s address “must be a street address in Arkansas, and the agent must be located at that address.” You cannot use a P.O. Box as the registered agent address.

Submit Your Formation Forms

Depending upon your chosen business structure, you’ll need to register with the Arkansas Secretary of State before commencing operations in the state. You may file your formation forms by U.S. mail, in person at Arkansas’s Secretary of State’s Office, or online through Arkansas’s online portal.

Additionally, you’ll need to file the appropriate filing fee along with your formation documents. Paying the wrong amount can result in the return of your documents, further delaying your startup’s formation.

Arkansas’s Secretary of State provides all business registration forms for your startup. For example, for an LLC, you can use the sample forms provided on the site for your certificate of organization, which also notify you of the required filing fee. In addition, you’ll file articles of incorporation for corporations, and for limited partnerships, you’ll file a certificate of a limited partnership. All forms can be filed online.

What to Do Next

After you submit your formation forms, registering your startup with the state, you’ll also need to obtain a federal employer identification number for banking and tax filings. Additionally, you’ll need to check in with the State of Arkansas and your local city and county to see if there are any additional business registrations required, such as a business license.

How Long Does It Take to Register a Business in Arkansas?

With online filing options, you can register your Arkansas startup in as little as a few hours. However, if you mail in your registration forms instead, you may have to wait a few days for your startup to be up and running officially.

Like any other task, preparation is vital. The more you prepare, the faster you’ll complete your registration. By researching your business’s services or products, determining if your startup name is unique, and choosing your ownership structure, you’ll be better prepared to complete the necessary registration forms.

How Much Does It Cost to Register a Business in Arkansas?

Depending upon your chosen entity for your startup, you will have filing fees due when registering your company. For example, if you register as a limited partnership or an LLC, you’ll pay a filing fee of $50 if filing online.

You’ll also need to file annual reports for your startup. You’ll need to budget for these filing fees as well.

After submitting your registration forms, you need to learn about any required state or local licenses, such as a business license.

Also, depending upon your entity, you may be liable for Arkansas’s business taxes, such as withholding, sales tax, and corporate tax. To better understand your state tax obligations as a startup, you can check with the Arkansas Department of Revenue, or you should consult with an accountant familiar with Arkansas tax laws.

How Do You Register as a Woman-Owned Business in Arkansas?

In Arkansas, if you are a woman-owned business, you have access to several certificate programs and resources, such as the Minority and Women-Owned Business Enterprise Certification and the Office of Women’s Business Ownership, part of the U.S. Small Business Administration.

In addition to the state certification, you can also explore national certifications, such as those offered by the Small Business Administration (SBA). For example, the SBA offers three types of certifications for women-owned businesses, including the Women’s Business Enterprise (WBE), the women-owned small business (WOSB), and the Economically Disadvantaged Women-Owned Small Business (EDWOSB). To learn more about these certifications, visit the SBA’s website.

The Benefits of Registering a Business in Arkansas

Here are some benefits of registering your startup in Arkansas:

Low cost of living and doing business
Low property taxes
Numerous tax incentives
Access to larger cities
Over 40 colleges and universities, giving entrepreneurs access to top talent
Numerous outdoor activities

The Limitations Associated with Registering a Business in Arkansas

Here are some limitations of registering your startup in Arkansas:

Lack of diversity
High sales tax
High crime rates

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If you’re looking for help registering your Utah startup, we can get your documentation ready, overall shepherding this process to ensure it’s done right. Get in touch with us.

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