updated September 1, 2023 · 4min read
A corporation is a limited liability entity, which means that the corporation’s shareholders are protected from personal liability for the corporation’s debts and obligations. A corporation’s limited liability may also help protect shareholders’ assets if an employee is sued.
Requirements for incorporating in Arkansas
Prearing your articles of inccorporation
An Arkansas corporation is formed by filing articles of incorporation with the Secretary of State. Once you have filed the articles, the corporation formally exists. The articles of incorporation may contain many provisions, but they must include the following:
In regards to the corporation’s stock structure, the articles of incorporation must meet the following criteria:
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Naming your corporation
You should check the availability of your proposed corporation name before filing articles of incorporation. You can do this by contacting a business services representative in the Secretary of State’s office or by conducting a search on the Secretary of State website. You can reserve a corporate name for 120 days by submitting a form to the Secretary of State.
Your name must meet the following criteria:
Specifying incorporators
An incorporator is a person who files the articles of incorporation. The name and addresses of all incorporators must be listed in the articles of incorporation, which must meet the following criteria:
Specifying directors
Directors are responsible for managing the corporation’s business and affairs. Directors have a fiduciary duty to the corporation, which means they must exercise good business judgment and act in good faith and in the best interests of the corporation and its shareholders. A corporation must meet the following criteria in regards to directors:
Specifying a registered agent
A registered agent is a person that receives legal actions and other official correspondence on the corporation’s behalf and may be an individual or a professional corporate service company. You must provide an Arkansas street address where your registered agent is located.
Stating a corporate purpose
Arkansas requires you to state a primary purpose for your corporation. In addition, your corporation must be formed for the purpose of conducting any business not contrary to law.
Determining incorporation bylaws
Bylaws outline a corporation’s internal structure and provide operating procedures. They may include provisions for the regulation and management of the corporation’s affairs. Directors are required to adopt bylaws, which must be consistent with the law and the articles of incorporation.
Costs of incorporating in Arkansas
The Arkansas Secretary of State requires a fee when filing articles of incorporation or reserving a corporation name. Corporations are also required to pay state and federal income taxes.
Ready to start a corporation in Arkansas? Form an Arkansas corporation online through LegalZoom and select a registered agent in Arkansas.
by Jane Haskins, Esq.
Jane Haskins is a freelance writer who practiced law for 20 years. Jane has litigated a wide variety of business disp...
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