Moving Your LLC or Corporation to Arkansas

You may be a first-time entrepreneur or someone who owns multiple businesses; either way, every business needs to expand. The expansion can be in the same state, or you may want to move to another state. There may be several other reasons for relocating or moving your business to Arkansas. Transferring your corporation or LLC to this state involves handling a multitude of tasks, ranging from finding suitable commercial space to determining how to register or relocate your organization. The processes may be many, and hence we have created this guide. It will help you understand whether Arkansas allows domestication and, if so, what the correct or legal process is to do so efficiently.

Introduction – Why Arkansas?

The dream of every entrepreneur is to start their business in a state where they can achieve maximum ROI (return on investment). Arkansas is such a state. The Area Development magazine ranked Arkansas as the 12th best state for doing business. Relocating a business to Arkansas means you will be able to take advantage of the existing business climate and pro-business regulations in this state.

The state also boasts a growing startup ecosystem, where early-stage funding, collaboration, mentorship, and small business resources are readily available. Whether you want to move your LLC or corporation to Arkansas or opt for entity domestication, the overall low cost of business operations can be a boon when considering long-term growth. Let’s identify the primary benefits of moving your company to this state.

Business climate

Moving your business to Arkansas is a decision that will take into account several factors, including the business climate. Arkansas, also known as the “Land of Opportunity,” does have an extremely pro-business environment. This takes into account the overall cost of establishing and operating a business, as well as the economic and social conditions, available resources, economic indicators, government policies, and business regulations. All of these factors can have a positive or negative impact on your company’s overall performance. If you want to transfer your LLC to Arkansas or form a corporation, here are some insights into the state’s business climate.

It is one of the most financially sound states in the nation
The Tax Foundation report reveals that the state has the highest relative value of $100 at $117.23.
Business incentive programs are tailored to the specific needs of enterprises of all sizes.
The state offers several accelerator programs that award funding exceeding $1 million through the Arkansas Business and Technology Accelerator Grant Program.
Arkansas boasts a low overall cost of doing business.
It is home to some of the world’s most prominent Fortune 500 companies, such as Tyson, Walmart, and J.B. Hunt.
The average cost of living in Arkansas metropolitan statistical areas (MSAs) has been consistently below the national average.
You can enjoy low tax obligations made possible through a variety of tax exemptions, incentives, refunds, and credit programs.

Infrastructure

The state of Arkansas has a growing economy, with a real gross domestic product (GDP) of $148.2 billion in 2024. This GDP is directly and indirectly driven by the state’s business infrastructure and industries. The robustness of transportation infrastructure and the availability of commercial real estate are two reasons why relocating a business to Arkansas is beneficial. The existing infrastructure and proposed plans are both industry-focused, thereby helping to drive business and economic growth, facilitate freight movement, and promote trade and commerce. The state has a highly modern transportation infrastructure that includes 1,000 miles of navigable waterways, state highways, a Class I railway system, and commercial airports.

If you plan to move a Corporation to Arkansas, you can operate it from special zones and thus benefit from various incentives. These designated zones have the necessary business or commercial infrastructure and include Foreign Trade Zones (FTZs), Economic Opportunity Zones, and specialized business hubs. Some of the thriving business hubs, such as Fayetteville, Little Rock, and Bentonville, are also considered major economic centers that encompass a wide range of industries. Robust and modernized infrastructure has been instrumental in making the cost of doing business in this state one of the lowest in the nation.

Workforce

One of the key factors driving business and industrial growth in Arkansas is an educated workforce. If you are considering relocating your business to Arkansas, you will also need skilled local employees. The state is home to top universities like the University of Arkansas. The state also helps in empowering small businesses and entrepreneurs through key programs like ARise Arkansas and 75Strong. Since the state has a reasonably large manufacturing sector, Arkansas can meet the rising demand for experienced manufacturing industry workers. The Arkansas Economic Development Commission (AEDC) also works to strengthen and grow its existing workforce through various training programs.

Steps to Move Corporation to Arkansas

Suppose you are thinking of relocating a business to Arkansas. In that case, the state offers several advantages, including tax incentive programs, funding options, and special trade and industrial zones. When relocating your business, you may have several questions, such as whether Arkansas allows domestication and what the applicable processes are for relocation. There are primarily two options for moving your corporation to this state. Let’s examine these options in detail.

Register as a foreign Corporation

The first option for relocating a corporation to Arkansas is to register it as a foreign company. This option is viable only if you want to operate your existing company in both your home state (the state of incorporation) and Arkansas. There is a process for relocating a corporation, and it is governed by the Arkansas Code of 1987 (2024), Title 4, Subtitle 3, Chapter 27 – Business Corporation Act of 1987, Subchapter 15 – Foreign Corporations. The process for Arkansas foreign qualification is as follows:

Designate a registered agent in Arkansas for handling service of process pursuant to AR Code § 4-27-1510 (2024)
Conduct a name availability search and register the name of the corporation pursuant to AR Code § 4-27-403 (2024).
File the Application for Certificate of Authority pursuant to AR Code § 4-27-1503 (2024). The filing fee is $300 for paper forms and $270 for online submissions.
You will also need to submit a Certificate of Good Standing, issued by the state of your home state or state of incorporation.

Do you want to start a foreign corporation in Arkansas?

Dissolve Home Corporation and establish a new Corporation in Arkansas

The other option for moving a corporation to Arkansas is through dissolution and domestic incorporation. You will need to dissolve your existing company in the home state (state of incorporation) and then apply for incorporation in Arkansas. The process of relocating a business to Arkansas will be time-consuming and require a significant amount of documentation on your part. You will need to comply with the laws and dissolution process in your home state. The method of dissolution may vary from one state to another, but here are some general procedures:

Approval of the dissolution of a corporation by the incorporators, directors, or shareholders
Filing Articles of Dissolution in the home state
File any federal, state, and local taxes and claims outstanding
Publication of notice of dissolution, if applicable
Wind up all affairs in the home state, like canceling business licenses and permits

The process of entity domestication in Arkansas through domestic incorporation involves:

Appoint a registered agent for service of process under Arkansas Code of 1987 (2024) § 4-26-501 and § 4-27-501
Identify and reserve a business name using the Application for Reservation of Entity Name (form RN-06)
File Articles of Incorporation under AR Code § 4-27-202 (2024) along with a fee of $50
Appoint directors and prepare bylaws for your Arkansas Corporation
Apply for business licenses and permits

Incorporate in Arkansas with ease!

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Steps to Move an LLC to Arkansas

Moving your business to Arkansas will require you to be compliant with state laws and follow specific business processes, depending on how you plan to relocate. The state of Arkansas provides pro-business regulations, a low overall cost of doing business, and a dedicated and skilled workforce. However, you may have specific queries about relocation, such as whether entity domestication in Arkansas is possible and the process of moving your LLC to this state. There are two ways you can relocate. Let’s examine each of the methods in detail.

Register as a foreign LLC

The first method for facilitating the relocation of a limited liability company to Arkansas is to register it as a foreign limited liability company (LLC). This process is also referred to as recognition of a foreign qualification. You can transfer an LLC to Arkansas using this method if you want to operate your existing company in the home state (state of registration). There are several steps involved in relocating a business to Arkansas through foreign qualification. The process is as follows:

Hire and maintain a registered agent in Arkansas for handling service of process under AR Code § 4-33-1507 (2024).
You can keep the existing name of your foreign LLC only if it is available. If the said name is unavailable, then you can choose a DBA or fictitious name by filing an Application for Fictitious Name under AR Code § 4-26-405 (2024).
File the Application for Certificate of Registration of Foreign Limited Liability Company to transfer LLC to Arkansas under AR Code § 4-38-903 (2024).
Apply for necessary business licenses and permits.

Apply for an LLC foreign qualification in Arkansas

Dissolve Home LLC and form a new LLC in Arkansas

The second option for relocating your business to Arkansas is to dissolve your existing company and register a new LLC in this state. You will be required to file a certificate or articles of dissolution, depending on the state where you initially registered your company. Different states have different laws, procedures, documents, and fees for dissolution. Some of the most common steps to follow during dissolution are:

You must obtain approval for the dissolution of your LLC through the consent of all members
You will need to file Articles or a Certificate of Dissolution in your home state
File any outstanding claims, as well as federal, state, and local taxes
Publish a notice of dissolution if applicable
Cancel all business licenses and permits

The process for moving an LLC to Arkansas through new business registration involves the following steps:

Appoint a registered agent in Arkansas to handle service of process
Conduct an LLC name availability search and reserve a business name. You have to submit an Application for Reservation of Limited Liability Company Name
File Certificate of Organization under AR Code § 4-38-201 (2024) along with a fee of $50
Prepare the Arkansas LLC operating agreement
Open a business bank account
Apply for relevant business licenses and permits

Register your LLC in Arkansas Today!

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How do I file for LLC domestication in Arkansas?

There is another option available for relocating your LLC to Arkansas, known as domestication. If you search for entity domestication in Arkansas, especially concerning an LLC, you might not find much information on the topic. This is because the business laws were recently updated to accommodate domestication. The governing law for moving your business to Arkansas through domestication is the Arkansas Code of 1987 (2024), Title 4, Subtitle 3, Chapter 38, Subchapter 10 – Merger, Interest Exchange, Conversion, and Domestication. The steps are as follows:

You first need to determine if your home state (the state in which your LLC is registered) allows for domestication or not. If permitted, you can opt for entity domestication in Arkansas.
You need to obtain all documents necessary for this process to be initiated. The documents have to be obtained from your home jurisdiction. This may include a certified copy of your LLC’s original articles and amendments, if any.
You will also require a certificate from the Secretary of State or a competent authority stating that domestication is allowed by your home jurisdiction. It should also be noted that your company meets all the requirements for domestication.
Conduct a business name availability check, and if the name is available, reserve it. You can also conduct business in Arkansas under a fictitious name.
Hire an Arkansas-registered agent.
File the Limited Liability Company Certificate of Transfer of Domicile (Domestication) to Arkansas form along with a fee of $300.
You will also need to file the LLC Franchise Tax form along with this.
You will need to dissolve your limited liability company in the home jurisdiction.

Move Your Business to Arkansas with IncParadise

IncParadise is one of the most reliable and top-registered agent services in Arkansas. We offer a range of services tailored to meet diverse business needs. We can assist you with the process of relocating your business to Arkansas by facilitating dissolution paperwork in your home state, foreign qualification, and new business registration in Arkansas.

We will not only help you to transfer an LLC to Arkansas but also provide services that cater to a wide variety of business-related annual state requirements. These are offered as a part of our additional services and include obtaining an EIN, among others.