A business in Arkansas may be just what you’re looking for. If this is the case, one of your first steps should be to consider forming a corporation in Arkansas. Even if you’re an experienced entrepreneur, starting a business can be a daunting task. Even though owning a corporation sounds like a great idea, it can be disastrous if you don’t take the responsibility seriously. When incorporating a business in Arkansas, a slew of procedures must be followed. You’ll be able to protect yourself and your company if you do this correctly. If you’re planning on forming a corporation in Arkansas, keep in mind that several factors need to be considered. It takes a lot of time and effort to set up a corporation in Arkansas, but it’s well worth it if you’re an ambitious business owner. To get you started, follow these steps.
Choose A Name for Your Corporation
Your first order of business will be to settle on a moniker for the company. You are free to choose any name for your company if it is not used by another legal organization or has not been held in reserve for a future enterprise. This includes any acronyms or shortened versions of your name that you may have used in the past. You should also avoid using phrases that might be misunderstood as affiliated with governmental organizations or institutions. Some examples of these types of words are “federal,” “national,” and “central.” Because you’ll be using this name to register your company with the state, you should be sure it’s one that you won’t change in the future. If you do, you might lose the money you paid when forming a corporation in Arkansas.
File Articles of Incorporation with The Arkansas Secretary of State
The subsequent activity is the preparation of articles of incorporation, which must then be submitted to the office of the Arkansas Secretary of State. They must include information such as the name and location of your company, the names and addresses of directors, executives, and other relevant individuals, and the organization’s purpose (profit or nonprofit). Before being sent to the Secretary of State’s office for the filing process, the articles of incorporation need to be notarized, on which each incorporator must sign their name. The filing of articles of incorporation with the Arkansas Secretary of State does not incur any expenses; however, there may be extra fees involved with having them registered at the local county clerk’s office in the same county where they were filed.
Appoint Directors and Officers for Your Corporation.
Compared to a sole proprietorship or a general partnership, a corporation represents a significant departure from these business structures. Because a corporation has its unique legal existence that is distinct from the persons who govern it, the activities of one owner of the business cannot be held against the actions of another owner of the corporation. For instance, if your company is located in Arkansas and commits an act that is unlawful in that state, the other company owners are not responsible for the activity even though they had nothing to do with it since they are not vicariously liable. You will need to decide on a name for your company, designate directors and officers, and submit articles of incorporation with the office of the Secretary of State. Additionally, each year you will be required to submit an annual report detailing any changes that have been made to your company’s officers or directors since your last filing and audited financial statements.
Create Bylaws When Forming a Corporation in Arkansas
One of the first things you’ll do when starting a business is draft the bylaws. Bylaws are the rules and regulations that govern how a corporation operates on the inside. Different components of your corporation’s operations will be laid down in its bylaws. The Articles of Incorporation, a legally binding document specifying your company’s name, purpose, and restrictions on who can own shares, often includes the bylaws. The Arkansas Secretary of State’s helpful guide to forming an Arkansas corporation walks you through some steps involved in establishing your business in Arkansas. You’ll begin by putting your company’s structure in order and registering it. When registering as an LLC, sole proprietorship, or partnership, the process is similar, but it’s essential to ensure you have the proper paperwork before you begin operations.
Pick A Registered Agent for Your Corporation
The next thing you need to do is choose a registered agent for your corporation. A person or firm that serves as a company’s official representative inside the state is known as the company’s “registered agent” (i.e., he or she receives the official filings and legal notices sent by the state). After doing some research, the majority of people prefer to have their registered agent be the office of the Secretary of State; however, this might be a costly option if your firm is doing business with numerous states and counties simultaneously. Other companies can provide registered agent services at a lower cost; however, you need to make sure that the person you choose has experience working with businesses that are similar to yours as well as experience managing legal filings. Other companies can provide registered agent services when forming a corporation in Arkansas.
In Arkansas, forming a business is as straightforward as it is cost-effective. In order to register your representative, complete the necessary paperwork, and adhere to state legislation and corporate formalities, any one of our professionals is ready to assist you. There will be no shortage of support available to our customers if they choose to do business with us. Call us immediately at (800) 580-4870 to learn more about forming a corporation in Arkansas with our support.