Arkansas Registered Agent

A registered agent in Arkansas is also known as a statutory agent, resident agent, or an agent for handling service of process. Here, the principal services rendered by any RA in the nation are those of receiving service of process. If you are wondering what this process entails, let’s explain it briefly. This refers to a legal procedure that involves notifying a defendant about any pending legal action when a lawsuit has been filed. This consists of delivering all types of legal and official documents, including summonses to the defendant. A registered agent services Arkansas works within the state business law framework and handles all such responsibilities associated with this legal procedure.

What is an Arkansas registered agent?

If you are planning to start an LLC or corporation in Arkansas or want to apply for foreign qualification, a top-of-the-line resident agent can provide meaningful assistance. Since such agents offer a wide array of services, it becomes imperative to conduct a proper search. A good agent can make quite a difference between business success and failure. You will not only need an agent for delivering service of process, but you will also be helped with the submission of official documents.

For Example, suppose you are planning to register an LLC in Arkansas. In that case, you will need to reserve a business name, fill out and file a Certificate of Organization with the Secretary of State (SOS), apply for business licenses and permits, obtain an Employer Identification Number (EIN), and file an annual report. These are some of the most important documents that your business needs to update or submit. If you miss filing any document or if a document is incomplete, then your business registration or operations will be hindered.

What are the roles and responsibilities of a registered agent in Arkansas?

The Arkansas Code of 1987 (2024) for businesses has defined the roles and responsibilities of a registered agent. The requirements are similar to those of any RA service across the nation. The laws are similar in all 50 states. The law requires that a registered agent be hired and maintained in Arkansas. This applies to both new and existing domestic entities, as well as foreign companies. The responsibilities of a resident agent include the following:

• Point of contact with the state or SOS – The role of a resident agent is to act as the primary point of contact. They will be responsible for initiating and facilitating any communication with the state and your company. This may include receiving all your official mail, as well as legal documents. Their responsibility also lies in forwarding such documents to a designated representative of your company.
• Service of Process – When a company (LLC, corporation, or partnership) is served with a Service of Process, it must be delivered by local law enforcement agencies. Most often, business owners don’t like police officers showing up at their office premises. This is where resident agent services in Arkansas make quite a difference. They will accept all documents on your behalf, thus safeguarding your privacy.
• Annual Compliances – It is essential to select a Registered Agent (RA) service after conducting an Arkansas registered agent search. This is because a good service will help your company to remain compliant with all state laws and meet necessary annual requirements.

  For Example, one of the most common requirements in most states, including Arkansas, is the annual report. When you appoint an RA in Arkansas, such as IncParadise, they will ensure that you are notified in advance regarding the submission and may even assist you with the process.

Who can be a registered agent for your Arkansas business?

Although the Arkansas requirements may vary according to the type of business entity, the RA laws remain relatively consistent in all 50 states. Arkansas does have its own rules regarding the qualification criteria for a statutory agent. In this state, an individual or a firm can act as your statutory agent or registered agent if they qualify.

What are the requirements of an Arkansas registered agent?

If you are faced with the question of who can be your registered agent in this state, the answer is that it depends on whether the individual or firm is compliant with state laws. The Arkansas Code of 1987 (2024) provides insight into the requirements. If you want to hire an agent, then it is recommended to conduct a search based on specific parameters. You need to check if your chosen agent fulfills most of the following requirements –

• He/she is a natural person and is a resident of this state
• A resident agent should have a registered office address and not a P.O. Box
• Your chosen resident agent should have their physical address on the public record
• They should be present at their mentioned address during business hours

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Can I serve as my own registered agent in Arkansas?

Yes, you can be your registered agent in Arkansas. However, if you choose to be your agent, then you will be required to meet specific requirements as mandated by the state. As you are aware, you will also need to accept Service of Process on behalf of your company, and this might not ensure complete privacy. You can offer registered agent services in Arkansas if:

• You must be at least 18 years of age.
• You should be a resident of Arkansas and have a proper physical street address.
• You should be available regularly to accept service of process and other legal or official documents during regular business hours.

How to Select a Registered Agent in Arkansas?

Selecting a qualified registered agent is one of the most critical business decisions you will need to make before registering your company. When you appoint an RA in Arkansas, they must ensure that your company stays compliant with every aspect of the Arkansas Code of 1987 (2024). The fact is that there are hundreds of RA firms and individuals to choose from. Hence, it becomes essential to conduct a search based on your requirements in this state. There are certain aspects to consider, and the following tips will help you with the process:

• Being available throughout the week is one of the top qualities of any resident agent. They need to be physically present at their registered address during regular business hours. This will ensure the agency receives all legal and official documents on your behalf.
• If you want to appoint a representative in Arkansas, it is always recommended to choose someone with experience in handling legal and official documentation. They should also possess knowledge of the Arkansas Code, as well as the various annual requirements applicable to businesses in the state.
• A reputable registered agent in Arkansas should be able to facilitate all necessary compliance by using state-of-the-art processes. For example, a reputable nationwide registered agent service, such as IncParadise, offers a reliable application system, like the Entity Management Software. This system provides important alerts and notifications related to annual compliance for your company.
• Some statutory agents may also provide mail forwarding services. This can be pretty useful, especially if your business requires you to remain out of state for extended periods. Even when you are not in Arkansas, you can rest assured that you will not miss any of your business mail.

Why choose a professional registered agent service in Arkansas?

In the state of Arkansas, you can be your own registered agent, but this may not be the best decision, especially if you are planning to register a medium-sized or large enterprise. Hence, it is recommended to hire professional services. There are, of course, several benefits to hiring a professional RA service, such as IncParadise. Some of the top benefits are:

• A professional registered agent will maintain regular business hours. This will ensure you are able to receive all important business documents and legal notices, if any, promptly.
• A statutory agent will have specialized forwarding services so that these documents reach you on time.
• A professional registered agent in Arkansas will have a physical address that meets the state’s requirements to act as an agent.
• Some RA services also provide off-site storage facilities for legal and sensitive documents.
• When you appoint a professional and reputable RA in Arkansas, they will, as part of their responsibilities, send you automated reminders and notifications, such as those for filing Arkansas annual reports.
• Professional RA services help protect your company’s private information.

Want to hire us as your Arkansas registered agent?

How to Change a Registered Agent in Arkansas?

If you want to change your existing registered agent, you need to first search and identify a reliable replacement. The next step will be to notify your former agent regarding the decision to change services. You may have one or multiple reasons for changing your RA services. The Arkansas Code of 1987 (2024) governs the Arkansas registered agent requirements in this state, including the process for changing your agent. The statutes remain the same for both domestic companies and foreign entities.

Want to change your registered agent in Arkansas?

Choose IncParadise as your registered agent in Arkansas

If you plan to start a new business or relocate your existing company to Arkansas, it is mandatory by law to maintain a registered agent in this state. You can conduct an Arkansas registered agent search to pinpoint a professional service. IncParadise is one of the top and highly reputable registered agents in this state. We are compliant with all requirements as established by the Arkansas Code and the Office of the Secretary of State.

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.

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.

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

• 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!

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

• 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!

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.

Arkansas Foreign Qualification

There are several reasons that drive entrepreneurs or business owners to opt for Arkansas foreign business registration. The state provides access to a wide variety of resources, right from small business support systems to a multitude of funding options. Lower cost of living is one of the salient highlights of this state, along with a top-notch business-friendly environment. A skilled workforce is easily available, and so are incubators and accelerators for startups. In fact, start-up ecosystems are growing rapidly in Northwest Arkansas, where venture capital access and startup growth initiatives have been implemented. All you need to do is apply for a foreign qualification in Arkansas and start conducting your business in this state.

What is an Arkansas foreign qualification?

There are two important aspects of a foreign qualification that you will need to understand before proceeding forward. Foreign qualification in Arkansas is a term associated with companies that are moving from one state to another within the USA. It does not refer to international companies, such as those relocating from Paris to Arkansas. The second essential aspect is that of understanding “domestic entity vs foreign entity.”

Example: You have formed a domestic LLC in Massachusetts by filing Certificate of Organization with the Secretary of the Commonwealth. Massachusetts will be considered as your home state. Now, if you want to move or expand your business to Arkansas then you will need to apply for Arkansas LLC foreign registration. You will also need to register or reserve a business name or apply for a fictitious name. These processes are considered as a part of foreign qualification. Once you foreign qualify, you will receive the authority necessary to transact business in Arkansas, which is the new or foreign state.

Doing business in Arkansas?

In the state of Arkansas, “doing business” refers primarily to establishing a business presence. It refers to several aspects, like conducting business activities within this state by hiring employees, starting an office, or accepting orders and projects in Arkansas. All these may trigger the requirement for a foreign qualification in Arkansas. These activities will also need such a company to apply for specific licenses and permits in the state, as well as local jurisdictions.

• If your company is maintaining, mediating, defending, arbitrating, or settling any proceeding or action
• If you are maintaining any business accounts in financial institutions across this state
• If your company carries out any activity that revolves around its internal affairs, like holding annual or quarterly meetings
• When you sell your products or services through independent contractors
• If you collect or secure debts or enforce mortgages, or even security interests in property
• If you are protecting or maintaining any property in this state
• If you are doing business through interstate commerce
• When your company conducts an isolated transaction in this state
• If your company maintains an office or agency solely for the exchange, transfer, and registration of securities

Arkansas Foreign Qualification Process

If your company fulfills the factors of “Doing Business” in Arkansas, then you will need to apply for Arkansas foreign corporation registration or LLC registration. Such a business cannot operate in this state without acquiring the proper authority to transact business in the state. It’s not just the authority, but you will also need to apply for the necessary business licenses and permits. If you operate a business without obtaining the required authority and licenses, then the said business would be considered to be breaking the laws as stated in the Arkansas Code of 1987 (2024) for Foreign LLC or Corporations.

Arkansas Foreign Corporation Registration

If you are already operating a corporation in another state and want to expand your operations in Arkansas or move your company to this state, then a foreign qualification is necessary. Arkansas foreign corporation registration will be governed by the Arkansas Code of 1987 (2024), Title 4, Subtitle 3, Chapter 27 – Business Corporation Act of 1987, Subchapter 15 – Foreign Corporations. In order to obtain the authority necessary to transact business in this state, there are certain steps to follow. They are:

1. Business Name

The first step towards registering a foreign corporation in Arkansas will be to identify a business name and register it. The corporate name should comply with state laws and include words such as “corporation,” “incorporated,” or abbreviations like “Inc.,” “corp.,” and “co.” Once you have identified a name, it is important to conduct an Arkansas foreign entity search, also known as a name availability search. This will ensure your chosen name is available for registration. Alternatively, if the chosen name is unavailable, then you can even file a fictitious name in Arkansas.

2. Registered Agent

Whether you are forming a domestic entity or incorporating a foreign entity, there are specific state guidelines that your company must comply with. Arkansas foreign corporation registration will be possible only if you continuously maintain a registered agent in the state pursuant to the Arkansas Code of 1987 (2024). We at IncParadise are one of the top Arkansas registered agents and have helped several domestic and foreign entities to incorporate in this state.

3. Certificate of Authority

The most crucial step in Arkansas foreign corporation registration is obtaining the necessary authorization to transact business in the state. You will need to file an Application for Certificate of Authority pursuant to AR Code § 4-27-1503 (2024). This application has to be submitted to the office of the Arkansas Secretary of State along with the annual corporate franchise tax reporting form. The filing fee is $300 for submitting a paper form and $270 if you are filing online. The Arkansas foreign business registration should not be a false document with the intent to file it, as this will be considered a Class C misdemeanor and hence punishable.

Do you want to register a foreign Corporation in Arkansas?

Arkansas Foreign LLC Registration

Companies that have been registered in another state are required to register with the Arkansas Secretary of State before conducting business activities in Arkansas. If you have registered a limited liability company in another state and want to expand your business in this state, then Arkansas LLC foreign registration is a must. This process is known as a foreign qualification. The process for foreign qualification of an LLC will be governed by the Arkansas Code of 1987 (2024), Title 4, Subtitle 3, Chapter 38 – Uniform Limited Liability Company Act, Subchapter 9 – Foreign Limited Liability Companies.

1. Business Name

One of the primary requirements for registering an Arkansas LLC as a foreign entity is a business name. You must identify a name in accordance with the state’s naming regulations. An Arkansas foreign LLC name should contain words like “limited liability Company”, “limited company”, or abbreviations like L.L.C. or LLC. The chosen name should also be available and this is possible by conducting a name availability search also known as an Arkansas foreign entity search. You can also opt to register your LLC name as a DBA and for that you will be required to file the Application for Fictitious Name Foreign Limited Liability Co. (F-18).

2. Registered Agent

One of the key requirements for Arkansas LLC foreign registration and operations is the service of process. This process has to be executed by a registered agent in this state. According to the Arkansas Code of 1987 (2024), a foreign limited liability company has to continuously maintain a registered agent in the state. Registered agent services offered by IncParadise will not only help fulfill state requirements, such as service of process, but also assist with other annual compliances, including the filing of annual reports. IncParadise is one of the top Arkansas registered agents and has assisted with foreign qualification in this state.

3. Certificate of Authority

In order to conduct business in this state, a foreign limited liability company is required to deliver a foreign registration statement to the office of the Secretary of State pursuant to AR Code § 4-38-903 (2024). This is also known as the Application for Certificate of Registration of Foreign Limited Liability Company – Form FL-01. You will have to provide the name of your Limited Liability Company or its fictitious name while submitting the documentation. This is the primary document for registering an Arkansas LLC as a foreign entity.

Want to form a foreign LLC in Arkansas?

Need Any Assistance in Applying for an Arkansas Foreign Qualification?

Arkansas is a pro-business state that offers all necessary business resources, right from a robust transportation and logistics infrastructure to low cost of operations and a highly skilled workforce. Whether you want to form a domestic entity or apply for a foreign qualification in Arkansas, there are numerous benefits that you can enjoy, like applying to state grant programs and tax incentives or credits. As one of the leading registered agents in Arkansas, IncParadise can assist you with the Arkansas foreign business registration process.

Doing Business in Arkansas

If you plan to do business in Arkansas, it can be highly beneficial in the long run. The state boasts a business-friendly environment, low cost of living, a strong workforce, and a strategic location. The Real Gross Domestic Product (GDP) of this state was $148.2 billion in 2024, representing a 3.7 percent increase from 2023. Several key industries in Arkansas contribute to the state’s growing economy, including tourism, business services, wholesale products (such as automobiles and farm produce), manufacturing, sales and distribution, cybersecurity, and fintech, among others.

Why do businesses prefer doing business in Arkansas?

Arkansas attracts both small businesses and large enterprises. Five Arkansas-based companies have been featured in the Fortune 500 list, including Dillard’s, J.B. Hunt Transport Services, Murphy USA, Tyson Foods, and Walmart. ArcBest, a logistics company, has been included in the Fortune 1000 list. In 2024, 11,136 small businesses were established, employing more than 250,000 people. Doing business in Arkansas has never been any easier, nor so profitable and growth-oriented. This is due to the numerous advantages the state offers. The top benefits of this state are:

• Financial Stability – One of the key offerings of this state to entrepreneurs and small business owners is financial stability. This stability is driven by several factors, including competitive Arkansas small business incentives, low overall cost of doing business, and a history of good fiscal responsibility and strong budget management. This helps in reducing deficits while managing debts.
• Low cost of doing business – One of the key factors is the low cost of doing business in this state. This is accompanied by the fact that the state also has a low cost of living, especially when compared to the larger metropolitan areas. Arkansas small business grants, along with lower utility costs, help reduce overall business operational expenses. The state is currently ranked 8th in terms of the cost of doing business.
• Incentive programs – Arkansas offers a wide range of competitive incentive programs for entrepreneurs looking to start a new business, expand their existing operations, or relocate their LLC or corporation from another state. These state-driven incentive programs provide Arkansas small businesses with funding through cash rebates, tax credits, and community grants.
• Tech industries and Startup Ecosystem – One of the salient attributes of starting a new business in this state is that you can operate your company in a diverse industry environment. Information technology is one such industry that is growing in leaps and bounds. Doing business in Arkansas in a promising and evolving startup environment means you will be able to benefit from the business incentives meant for technology-based organizations. You can even participate in initiatives like ARise (Arkansas Innovators, Startups, and Entrepreneurs) and, with the right business plan, can attract incubators, accelerators, and investors.

Small Business Incentive Programs and Grants in Arkansas

When you form a company or move your existing business to Arkansas, you will have access to apply for the Arkansas small business incentives programs. These programs have been established to fulfill the early-stage capital requirements of startups partially. Here is a list of some of the most popular and top incentive programs in this state.

Small Business Grants in Arkansas

When it comes to Arkansas small business funding options, they can be divided into two categories: grants and business incentives. The grant programs differ from loans and other incentive programs, such as tax credits. Small business grants in Arkansas are a type of financial award provided by various public or private organizations to support local businesses. The most significant benefit of applying for a grant is that you will not be required to repay, unlike in the case of loans. Funds acquired through grants can be used for various business purposes, right from starting a business to facilitating operations, improving work processes, and even supporting expansion.

Applied Research Grant Program

The objective of the Arkansas Applied Research Grant Program is to fund various collaborative research projects. These collaborative projects should be between private companies and Arkansas universities. This is one of the top-tier small business grants in Arkansas. It facilitates the advancement of innovative ideas and projects through collaboration, thereby fueling economic growth. New and existing businesses will be able to tackle their challenges regarding fund acquisition while gaining access to some of the brilliant minds in the state. This also makes doing business in Arkansas much easier.

Arkansas Business and Technology Accelerator Grant Program

If you are starting a technology-based company, this is the perfect Arkansas small business grants program for you to apply for. This grant has been introduced by the Arkansas Economic Development Commission (AEDC) to enable technology-based businesses to stimulate growth through innovation. This is a discretionary program where, if you qualify, the grant amount can be a maximum of $250,000. One of the objectives of this Arkansas small business funding and grant program is to create high-wage and high-skilled jobs. It is also directed towards helping companies develop various high-end technological products and services.

Business Incubator Program

Once you form a startup, you can start applying for different Arkansas small business funding programs. The state offers various types of incubator programs for supporting startups and entrepreneurs. These incubator programs not only provide financial resources but also networking and mentorship opportunities that will lead to business growth and expansion in the later stages. These Arkansas small business grant programs are targeted at different industries, including technology, finance, healthcare, and research. Some of the top business incubator programs are:

• Arkansas Small Business and Technology Development Center incubator program
• Spark program by the Venture Center
• An incubator program called Rock It! Lab (Central Arkansas Library System)
• Genesis Technology Incubator (Arkansas Research and Technology Park)
• Programs by the Bentonville Area Chamber of Commerce
• Incubator programs by Plug and Play Tech Center

Small Business Innovation Research (SBIR) Matching Grant Program

The Small Business Innovation Research (SBIR) Matching Grant Program is a nationwide program with outreach in Arkansas as well. There are two phases in this Arkansas small business grants program, and each phase provides a different funding or grant amount. In the SBIR Phase I, you can receive a matching grant of up to $50,000, while in Phase II, the matching grant can be as high as $100,000. Suppose you plan to do business in Arkansas in targeted business sectors specified by SBIR, such as advanced materials and manufacturing systems, information technology, or bio-based Products. In that case, you may be eligible to apply for this grant.

Technology Transfer Assistance Grant (TTAG)

The Technology Transfer Assistance Grant Program (TTAG) is a highly evolved form of funding programs in the state. It is being administered by the Arkansas Economic Development Commission (AEDC). Small businesses and medium-sized enterprises can apply for this Arkansas small business grants program if they operate in a technology-driven industry. This grant program provides necessary financial support to companies for the transfer and deployment of innovative technologies.

• $3,750 as a part of the costs associated with the transfer of new or existing technology from a public or private enterprise to another enterprise based in Arkansas
• $5,000 can be considered as a part of your total project costs, and the first $2,500 will be funded by AEDC. The remaining $2,500 will be shared equally between AEDC and the enterprise.

Are you thinking of starting a new business in Arkansas?

Other Small Business Incentives and Programs in Arkansas

If you plan to do business in Arkansas, you may often need financial assistance to deploy specific projects. You may require funding to start a business, make it operational, create jobs, enable new technology and innovation, and contribute to economic growth in this state. This is where the Arkansas small business incentives programs play a key role. Several programs provide crucial support to small businesses through various funding opportunities, grants, and tax credits. Let’s take a look at some of the most popular and top incentive programs in the state.

Targeted Business Incentive Programs

If you have registered your company in Arkansas and are seeking Arkansas small business funding options, targeted business incentive programs can be helpful. These programs have been designed to encourage economic development among businesses that apply and deploy new and emerging technologies. This type of Arkansas small business incentives program may include various components, such as sales and use tax refunds, income tax credits, small business grants, and funding for payroll or wages. There are, of course, targeted business sectors where this form of financing or financial incentive will be applicable. The sectors are:

• Advanced Materials and Manufacturing Systems
• Agriculture, Food, and Environmental Sciences
• Biotechnology, bioengineering, and life sciences
• Information Technology
• Transportation Logistics
• Bio-Based Products

• Targeted ArkPlus Program
• Targeted Business Payroll Program
• Targeted Create Rebate Program

Tax Back Program

One of the popular and important Arkansas small business incentives programs is the tax back program administered by the Arkansas Economic Development Commission (AEDC). The ‘Tax Back Program’ will provide a refund of your state and local sales and use taxes on the purchase of any material used for the construction of a building. This refund is also applicable to the addition, modernization, or improvement of a building. The sales and use tax refund is also applicable to the purchase of any taxable equipment or machinery that is associated with or used for the said building or project.

Ready to Start a Business in Arkansas?

Arkansas is a pro-business state that offers the ideal mix of infrastructure, talent, and opportunities for small and mid-sized enterprises. Growth and expansion are crucial for every business, but certain factors play a critical role, such as financial assistance and support. Arkansas’ small business funding options are essential for startups and entrepreneurs to drive business growth in targeted industries and sectors. If you want more information on grants and funding programs, IncParadise can provide you with that information.

Arkansas Business Tax

The Internal Revenue Service (IRS) says that the form of business you operate in Arkansas will determine the type of taxes you have to pay. Most types of business entities in the United States, as well as in Arkansas, are required to file tax returns at various levels, including federal, state, and local or county levels. These levels and taxes will vary from one state to another. If you have registered a company in Arkansas, the taxes you pay may differ from those filed by businesses in other states.

What taxes do businesses pay in Arkansas?

The Internal Revenue Service (IRS) states that all types of entity structures have to file some form of annual income tax return. Although property taxes in Arkansas are among the lowest in the nation, other forms of taxes have higher rates. When you register your company in this state, you may be required to file some form of Arkansas business tax.

Corporate income tax

The Arkansas corporate income tax is also known as the Corporation Income Tax. As the name suggests, it is mainly applicable to corporations. This type of tax has a graduated rate, which is applied to the Arkansas Net Taxable Income (NTI). The graduated rate slabs are as follows –

• If your taxable income is $0-$3,000, then the tax rate is 1 percent
• If it is between $3,001-$6,000, then the rate is 2 percent
• If it is between $6,001-$11,000, then the rate is 3 percent
• If it is more than $11,001, the applicable rate is 4.3 percent

Franchise Tax

The Arkansas franchise tax is one of the most important forms of taxation in this state. This is an annual obligation that is imposed on most businesses registered in this state. The tax was established under the Arkansas Corporate Franchise Tax Act of 1979. It is a type of Arkansas corporate income tax that is applied to various entities, including corporations and limited liability companies (LLCs). The franchise tax supports various state services as well as oversight of corporate operations.

Sales and Use Tax

The sales and use tax is one of the essential taxes in this state. This is an Arkansas business tax applicable to entities only if they meet the specified criteria. Suppose your business activity revolves around retail sales, and sales of tangible personal property or services as governed by the state laws. The sales tax is also known as the Arkansas gross receipts tax. In addition to the sales tax, your company may be required to file use tax on products purchased or procured from out-of-state sources. You will need to use an Arkansas business tax calculator to calculate sales and use tax. Compliance with sales tax requirements in Arkansas is extremely important for businesses.

Are you thinking of forming a new company in Arkansas?

How are Arkansas Businesses taxed?

If you are forming a startup in Arkansas or moving your company to this state, then one of the essential annual requirements is filing tax returns. The type of Arkansas business tax and its respective rates may vary depending on the entity structure, business activity, and the location of the company. Hence, Arkansas LLC taxes and rates will differ from those of a sole proprietorship or a corporation. It is essential to note that your company may be required to file more than one tax return form. Let’s examine the various entities and their tax obligations in Arkansas.

Taxes for an LLC

If you plan to start a limited liability company in Arkansas, it will be considered a pass-through entity for taxation purposes. This means that the LLC will not be required to file federal taxes or Arkansas corporate income tax. Since an LLC is a flow-through entity, the income will pass through to the owners and other members. Arkansas Code of 1987 (2024), AR Code § 26-51-919 (2024) states that a pass-through entity will be required to withhold Arkansas income tax at the highest income tax rate levied under §§ 26-51-201, 26-51-202, and 26-51-205 on the share of income of the said entity. The state of Arkansas has graduated income tax rates ranging from 2 percent to 4.40 percent. This is one of the most important Arkansas LLC taxes, and members have to file it on their share of the LLC’s income using their tax return.

Taxes for a C Corporation

If you are considering registering an Arkansas C corporation, your company may be subject to different taxes than those of an LLC or other entities. The foremost applicable tax is known as the Arkansas corporate income tax. This type of tax has a graduated tax rate that applies to the Arkansas Net Taxable Income (NTI), which ranges from 1 percent to 4.3 percent. This is a mandatory tax, and hence all forms of domestic and foreign C Corporations will need to file this tax. There are several other forms of Arkansas Corporation taxes that your company may be required to file. One such tax is the franchise tax.

Taxes for S Corporation

If you elect S Corporation tax status in Arkansas, then one of the benefits is that you will not be required to file the Arkansas corporate income tax. However, an S corporation can elect to file the Pass-through Entity Tax (PET). The pass-through entity tax is typically due by the 15th day of the fourth month following the end of the taxable year. This type of Arkansas Corporation tax must be filed through quarterly installments, as this will help avoid any underpayment penalties. The pass-through entity tax will be subject to all interests as well as penalty provisions of the Arkansas Tax Procedure Act (ATPA).

Taxes for a Sole Proprietorship

A sole proprietorship is one of the simplest forms of business that you can establish and operate in the state of Arkansas. A sole proprietorship is owned and operated by an individual or a single owner. Hence, this type of entity is required to file individual income tax. The tax rate will be the same as the rate of Arkansas LLC taxes, which varies from 2 percent to 4.40 percent. A sole proprietorship may also be required to file sales and use tax depending on the business activity and the location in which it operates.

Taxes for Partnerships

If you form an Arkansas partnership company, the applicable taxes may be similar to those of LLCs and sole proprietorships. The primary form of Arkansas business tax applicable to a partnership is individual income tax. Each partner is required to file returns based on the income earned through the entity. A partnership company can also elect to be a Pass-Through Entity Tax (PET), and the rate will be similar to that of LLCs or S Corporations.

Ready to Incorporate Your Arkansas Company?

There are different types of entity structures that you can choose to operate in the state of Arkansas. Each type of structure has its advantages and limitations. Whatever structure you choose, you will need to be compliant with the annual requirement of filing the Arkansas business tax. IncParadise, one of the top incorporation service providers in this state, can provide you with information about state and local taxes. We can assist you in registering your LLC or corporation in Arkansas.

Doing Business As or DBA in Arkansas

Arkansas is home to more than 250,000 small and medium enterprises (SME’s). These include sole proprietorships, partnerships, corporations, limited liability companies (LLCs), non-profit organizations, and home-based businesses. Whatever type of entity structure you choose, a structure can be registered and operated only when it has a name. This is known as a company or business name.

What is a DBA in Arkansas?

If you are considering registering your entity under a name that differs from your legal name, it will be referred to as a fictitious name or a Doing Business As (DBA) name. This type of business name is also referred to as a trade name or a trading name. So, you will be “doing business as” or “trading as” the XYZ name and thus will need to file a trade name in Arkansas. Generally, by default, most first-time business owners either use a standard business name or their legal name (full name) as the name of their company. Let’s look at an example to understand the scenario that requires you to file a DBA in this state.

Example: Your name is Luke Smith. You are starting a sole proprietorship or an LLC in the auto repair industry. Now you can reserve and begin using a business name like Luke Smith Auto Repairs LLC. After a few years, you want to diversify into selling cars. Now, you will need to think of a new name and reserve it or start a new company. Instead, you can simply file an Arkansas DBA online application. The fictitious name can be “Smith’s Motors”. When you register a trade name, you are not required to form a separate company.

When do you need a DBA?

A “Doing Business As” (DBA) name is also known as an assumed name or a fictitious name and can be filed by any individual or entity. Different business owners have varied reasons for filing a DBA in Arkansas. The primary purpose served by using a fictitious name is public notification. In other words, this is essentially for notifying the public of Arkansas that you or your company will be conducting business under a name that is different from your legal name.

• Similar, simple, and different – A fictitious name is quite similar to that of a legal name but is used without a suffix like “LLC”, “LLP”, or “Inc.”. Therefore, if your company is registered under the name Xavier’s Pet Grooming LLC, then the name most of your customers will be accustomed to is Xavier’s Pet Grooming. This type of name can even be completely different from the legal name.

  Example: As the business owner, you have registered your business as David’s Music Store LLC. You have now decided to refer to this business as Best Music, as it is shorter and memorable. This is where you apply for an Arkansas DBA online.

• Your chosen business structure – The need to file a DBA often arises, depending on the entity structure. It is common knowledge that, for the most part, sole proprietorship or partnership businesses register a trade name. This is especially true if such entities don’t want to use their own or their partner’s full legal name.
• Business Expansion – Once you start a company, you may expand your business areas or activities shortly. This could be achieved by introducing new products or services, as well as by expanding into new markets. You may also need to rebrand or create sub-brands. When such a time comes, filing an Arkansas DBA online application is beneficial. You can introduce a new product or service under a new name, also known as a fictitious name, without the need to register a new company.

  Example: You have formed a business in Jefferson County, Arkansas. The primary activity is selling lithographic printing inks, catering to the offset printing industry. It is named as Jefferson Ink and Systems LLC. Your name is James Monroe and you want to branch out and sell vintage fountain pens as well. You can use your legal name for this brand and expansion, like James Monroe Vintage Pen Co. Alternatively, you can file a trade name in Arkansas as ‘Monroe Vintage Pens’.

Filing a DBA in Arkansas for an LLC and a Corporation

A DBA (doing business as) name is known as a fictitious name in Arkansas and is governed by the Arkansas Code of 1987 (2024). If you plan to form a limited liability company or a traditional business corporation in this state, one of the first steps to take is identifying a suitable company name. You can start your business by using your legal name or opt for a fictitious name. If you want to apply for an Arkansas DBA online, there is a specific process to follow. The process and fee may differ from those of the traditional business name reservation process.

Do an Arkansas business entity search

If you plan to register a fictitious name for your corporation or LLC in Arkansas, the first step is to identify a suitable business name. The next step will answer your ‘how do I look up a DBA in Arkansas’ queries. This essentially means that you need to search for a fictitious name. The process of searching would be the same as conducting any entity search. You will need to:

• Visit the website of the SOS, where you can search using a name or a fictitious name
• You can search with the suffix LLC or INC., or just a name
• This fictitious name search will reveal if your chosen name is available or not
• This is followed by searching for trademarks or federally registered names using the Trademark Electronic Search System (TESS), also known as the trademark database

File the Arkansas application for a fictitious name with the Arkansas Secretary of State

Once you have conducted a fictitious name search in Arkansas, it will show whether such a name is available. If the DBA name is available, then the next step is to file a trade name in Arkansas under AR Code § 4-26-405 (2024). There are specific state trade name laws that you must comply with. The following steps will help you in filing an Arkansas DBA online application:

• If you form a corporation or LLC, your chosen fictitious name may or may not include corporate or LLC designators, such as “corporation” or “limited.”
• The use of the word “company” is permissible for corporations.
• If you choose to form a sole proprietorship, then filing a DBA in Arkansas will be possible only at the county level.
• The fictitious name selected should be distinguishable from any other name existing in the records of the state department.
• The state has issued a list of restricted words, and it is essential to ensure your trade name complies with this list.
• If the chosen fictitious name is available, then you can proceed with filing an Arkansas DBA online application. You will need to submit the form for “Application for Fictitious Name” along with a fee of $25 for LLC and Corporation. The fee for a general and limited partnership is $15. It has to be submitted to the Secretary of State’s Office.

Register your Arkansas DBA with ease!

Managing Arkansas DBA

One of the critical processes related to business formation or expansion is filing a DBA in Arkansas. However, there are other follow-up processes that every new or existing business owner needs to be aware of. Each state in the USA has its own DBA laws and regulations. These laws also indicate whether the chosen fictitious name needs renewal. The laws also provide directions related to changing or cancelling a fictitious name in the state. Let’s look at the various processes applicable after you get an Arkansas DBA.

How to renew an Arkansas DBA?

Once you have filed your Arkansas DBA online application, the name will become active. In this state, fictitious names don’t expire, and hence, there is no question of renewal.

How to change the Arkansas DBA?

After you file a trade name in Arkansas, can you change this name? Yes, you can change the fictitious name. You will have to cancel your current trade name using the Cancellation of Fictitious Name (CFN) form. There will be a fee of $25 for LLCs and corporations. This form has to be submitted to the Arkansas Secretary of State. Once the DBA name is cancelled, you will have to file for a new DBA using the Application for Fictitious Name form. Again, you will be charged $25 as the filing fee.

How to cancel the Arkansas DBA?

The process for cancellation of a fictitious name in Arkansas is relatively straightforward. You will need to file the Cancellation of Fictitious Name (CFN) form with the office of the Arkansas Secretary of State. The fee for LLCs and corporations is $25, while the cost for general and limited partnerships is $15.

Need Any Assistance in Filing an Arkansas DBA?

There is a process for applying and filing an Arkansas DBA online application. If you form a sole proprietorship, then you will need to file a DBA with the County Clerk’s office. If you create an LLC, corporation, or partnership, you must file a DBA at the state level. The process of conducting a fictitious name search in Arkansas and the filing process can be confusing. IncParadise can gladly assist you with this process as we have the necessary knowledge regarding the Arkansas DBA laws.