If your Arkansas limited liability company (LLC) was revoked or lost good standing, you have options. If you address your noncompliance issue directly, you can get your LLC back into good standing and continue operating as a formal business entity.
This guide covers how to reinstate an LLC in Arkansas, different status scenarios, exact steps, realistic costs, and a direct comparison of restoring your existing LLC versus forming a new one.
How to reinstate an LLC in Arkansas at a glance
- There is no formal "reinstatement" filing for LLCs in Arkansas. Rather, you return to good standing by simply filing missed paperwork and taxes, plus late fees.
- Reinstatement costs include the base $150 annual franchise tax, a $25 late penalty per missed year, and interest that accrues daily.
- Check your LLC's current status for free through the Arkansas Secretary of State's Business Entity Search before taking any action.
- If your LLC was voluntarily dissolved, you may be able to file a revocation of dissolution within 120 days of the dissolution date. After that window, forming a new LLC may be your only option.
What your Arkansas LLC status actually means
The terms "revoked," "dissolved," and "not in good standing" have distinct meanings under Arkansas law and point to different actions.
Revoked for unpaid franchise taxes
Revocation is the most common reason an Arkansas LLC loses good standing. If you don't pay the annual franchise tax for three consecutive years, your LLC enters revoked status.
Revocation can carry significant legal and financial consequences. A revoked LLC cannot file new documents with the Secretary of State, cannot obtain a certificate of good standing, and continues to accrue penalties and interest daily. Businesses that continue to operate while revoked do not enjoy the liability protection afforded to entities in good standing.
Arkansas law also prohibits anyone "substantially connected" to an LLC with past-due franchise taxes from filing any paperwork with the Secretary of State's Business and Commercial Services division, including the documents needed to form a new LLC.
The fix here is straightforward: file and pay all past-due franchise tax reports. Once you do that, you’ll fall back into good standing.
Administratively dissolved by the Secretary of State
The Secretary of State can administratively dissolve an LLC that fails to pay a required fee, tax, interest, or penalty within six months of its due date, fails to deliver an annual report within six months, or lacks a registered agent for 60 consecutive days.
An administratively dissolved LLC still exists as an entity in the eyes of the state, but it may only wind up its affairs or apply for reinstatement. This is separate from franchise tax revocation, though unpaid franchise tax is one obligation that can lead to it.
Voluntarily dissolved
Voluntary dissolution is a deliberate choice. It happens when the LLC's members decide to close the business and file a statement of dissolution with the Secretary of State.
If your LLC was voluntarily dissolved and you've changed your mind, Arkansas gives you a limited window to reverse course. All members and managers must sign a revocation of dissolution with the Secretary of State.
What it costs to reinstate an Arkansas LLC
For most LLCs, reinstatement isn't a fee as much as a catch-up. Arkansas charges no separate reinstatement fee for an LLC revoked over franchise taxes, so your cost is the back taxes, penalties, and interest that piled up while you were delinquent. The total depends on how you lost standing and how long it has been.
| What you pay | Amount | When it applies |
|---|---|---|
| Annual franchise tax | $150 (per year) | Franchise tax revocation |
| Late penalty | $25 (per year) | Franchise tax revocation |
| Interest on the unpaid balance | 10% per year, accruing daily | Franchise tax revocation |
| Online processing fee | $5 | Online filings only |
| Revocation of dissolution | $25 | Reversing a voluntary dissolution |
| Administrative reinstatement | $25 filing + all overdue taxes and penalties | Administrative dissolution |
The total of tax, penalty, and interest for any single year cannot exceed twice the tax owed, so a delinquent year tops out at about $300 no matter how long it sits. If your LLC was administratively dissolved rather than only revoked for taxes, reinstatement requires that you pay all fees, taxes, interest, and penalties that were due at dissolution plus those that would have come due while you were dissolved.
How LegalZoom can help
If you’re ready to reinstate your LLC but not sure how to go about it, LegalZoom’s reinstatement service is now paired with Business Manager, our end-to-end compliance management service. You’ll be paired with a dedicated manager who will help assess your compliance scenario and make a roadmap to get you back into good standing. From there, they’ll help manage compliance due dates and deadlines so you don’t fall behind again, from business licenses to annual reports.
Want a more DIY approach? Explore LegalZoom’s compliance products for structured DIY filings and questionnaires backed by our 25+ years of helping businesses. Even if you’re confident in the next steps, our proven process helps you file the right paperwork, the right way.
FAQs about Arkansas reinstatement
Is there a deadline to reinstate my LLC?
It depends on how you lost standing. You have 120 days to rescind a voluntary dissolution and two years to reinstate after an administrative dissolution. For a franchise tax revocation, there is no fixed deadline to pay the back taxes, but they keep accruing until the LLC is dissolved, withdrawn, or merged.
Can I keep my business name?
Only if it is still available. Once your LLC is dissolved, the name becomes available to others, and if it was taken you will need to choose a new name when you reinstate.
Should I reinstate my LLC or form a new Arkansas LLC?
The strongest reason to reinstate your Arkansas LLC is continuity. A reinstated LLC keeps its original formation date, EIN, name, licenses, and contracts, and the law treats it as though the lapse never happened.
A new LLC gives you a clean slate but means re-registering and rebuilding everything tied to the old entity.
What usually forces the decision is timing. You can rescind a voluntary dissolution only within 120 days of the election to dissolve. and you can reinstate after administrative dissolution only within two years. Miss either window and reinstatement is no longer available, which makes forming new the only path.
Daniel Smith contributed to this article.
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