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How to Incorporate in Arkansas (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

Incorporating a business in Arkansas can provide your company with valuable benefits like liability protection, tax advantages, and increased credibility. While the process does involve some effort on your part, it’s well worth it in the long run. This comprehensive guide will walk you through everything you need to know to form an Arkansas corporation from start to finish.

Why Incorporate in Arkansas?

Before jumping into the how-to steps, let’s first cover some of the key reasons why incorporating in the Natural State makes good business sense:

  • Liability protection. Forming a corporation shields your personal assets (like your home or cars) from business debts or legal claims. Creditors can only go after corporate assets.
  • Tax savings. Depending on your situation, an Arkansas corporation may pay lower income taxes than other structures like sole proprietorships. S-corps also avoid “double taxation.”
  • Fundraising potential. Attracting investors is easier when you’re a corporation. The stock market only deals in corporation shares.
  • Credibility. Incorporating lends a professional, reputable image that makes customers and partners feel more secure.

Of course there are also downsides, like more paperwork and startup costs. But for many business owners the benefits outweigh the drawbacks.

Step-By-Step Guide to Incorporating in Arkansas

Ready to move forward with turning your business idea into an official Arkansas corporation? Here is an in-depth walkthrough:

Choose an Available Business Name

Your first task is picking an original name that no other Arkansas corporation is already using. It must include a corporate designation like:

  • Corporation
  • Incorporated
  • Company
  • Limited
  • Corp.
  • Inc.
  • Co.
  • Ltd.

You can double check name availability using the Arkansas Secretary of State’s database. Make sure to also check for existing trademarks to avoid conflicts.

If after incorporation you want to operate under a different DBA (“doing business as” name), you will need to file for an assumed business name.

Appoint a Registered Agent

An Arkansas registered agent accepts official mail and legal papers on behalf of your corporation. All corporations must designate one. While you can save money by appointing yourself, this makes your contact information part of public record. Using a third-party registered agent service keeps your privacy intact.

Prepare and File the Articles of Incorporation

Drafting and submitting Articles of Incorporation formally registers your business with the state of Arkansas. Fill yours out online ahead of time to speed up the process later.

Here’s what to include:

  • Your corporation’s name
  • Number and type of stock shares
  • Registered agent’s name and address
  • Incorporator’s name and address
  • Leadership structure
  • Business purpose
  • Franchise tax contact details

File your finalized Articles by mail or through the SOS website. Payment accepts credit cards or eChecks.

When your filing gets approved, you will receive a Certificate of Incorporation confirming your company’s official legal existence.

Hold an Organizational Board Meeting

The first official board meeting adopts bylaws, appoints initial company directors, and handles any other startup tasks. Record minutes from the meeting to keep with your permanent corporate records.

Bylaws establish operating procedures for director elections, shareholder meetings, decision making policies and more. Adapt a free template to suit your business rather than writing from scratch.

Get an Employer Identification Number

Apply for a federal EIN directly through the IRS website. This unique number identifies your corporation for tax purposes even if you don’t have employees yet.

Many banks require an EIN to open up business bank accounts as well.

Submit a Beneficial Ownership Information Report

In 2024, new U.S. corporations must start providing ownership details to FinCEN, a financial crimes agency. Specifically, disclose identities of “beneficial owners” with significant control, plus the individual who directed company formation.

First-time reports are due within 30-90 days of incorporating in Arkansas, depending on when you form. Updates get filed for any ownership changes down the road.

Luckily these reports remain confidential. Only law enforcement and certain government agencies can access them.

Stay Compliant with Ongoing State Filings

Maintain your incorporation by submitting mandatory reports on time, every time. For Arkansas corporations, you need to file:

  • Annual Franchise Tax Report – Due May 1st, this replaces an annual report filing. Calculate your tax using outstanding shares value. Include leadership and contact info updates.
  • State Business Tax Returns – Invoice yearly taxes on corporate income with the Arkansas Department of Finance. Rates range from 1-6.5% depending on yearly profits.

You should also renew business licenses, permits and your registered agent agreement as needed. Set calendar reminders so you never miss a critical deadline!

Conclusion

Following the steps laid out above removes the complexity from starting an Arkansas corporation. Take advantage of online filing through the Secretary of State website whenever possible to expedite the process.

Thanks for reading and hopefully you now feel empowered to get your Arkansas corporation up and running. Maintaining compliance does create some ongoing responsibilities. But the rewards of limited liability plus tax savings make things well worth the effort.

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

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*Disclaimer: Meow Advisory LLC is a registered investment adviser. Registration as an investment adviser does not imply any level of skill or training.
For accounts opened through Atomic Brokerage LLC: Meow Advisory LLC has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC , to bring you the opportunity to open a brokerage account. Brokerage services for customers of Meow Advisory LLC are provided by Atomic Brokerage. For more details about Atomic Brokerage, please see the Form CRS, General Disclosures, and the Privacy Policy. Check the background of Atomic Brokerage on FINRA’s BrokerCheck.
For subadvisory services for accounts opened through Atomic Invest LLC: Meow Advisory LLC has an engagement with Atomic Invest, LLC (“Atomic Invest”), an SEC-registered investment adviser, to bring you the opportunity to open an investment advisory account. Investment advisory services are provided by Atomic Invest. Companies which are engaged by Atomic Invest receive compensation of 0% to 0.85% annualized, payable monthly, based upon assets under management for each referred client who establishes an account with Atomic Invest (i.e., exact payment will differ). Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by customers with Meow Advisory LLC. Meow Advisory LLC is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic invest. Advisory services through Atomic Invest are designed to assist clients in achieving a favorable outcome in their investment portfolio. They are not intended to provide tax advice or financial planning with respect to every aspect of a client’s financial situation and do not include investments that clients may hold outside of Atomic Invest. For more details about Atomic Invest, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Brokerage services for Atomic Invest are provided by Pershing Advisor Solutions LLC (“PAS”), a registered broker-dealer and member of FINRA and SIPC.
Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates, is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged by Atomic Brokerage and/or Atomic Invest.
See the Legal Section within the Meow website for additional agreements.

U.K. Gilt pricing quoted net of fees. ~5% U.K. Gilt yield is sourced from Investing.com December 2023 6-month United Kingdom 6-Month Bond Yield. ~5% Treasury Bill yield is sourced from treasurydirect.gov December 2023 12-week U.S. Treasury Bill auction.

**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by FirstBank, a Tennessee corporation, you deposit your funds into a deposit account at FirstBank, which sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including FirstBank's ICS Deposit Placement Agreement. FirstBank uses a third-party vendor and agent to help administer this sweep process. Visit IntraFi for a list of the banks and savings associations with which FirstBank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by FirstBank or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of FirstBank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheet for additional information.

***FDIC insurance coverage is only available to protect you against the failure of an FDIC-insured bank that holds your deposits (and does not protect you against the failure of Meow or other third party). Your account with Meow and all services provided to you are subject to the Meow Terms of Service (“Account Agreements”) and other applicable terms and no other representations or warranties, express or implied, are provided to you except as expressly set forth in those written Account Agreements. If you have any questions regarding your account, please contact team@meow.com.

FirstBank Funds Availability Notice

FirstBank’s general policy is to allow you to withdraw funds deposited in your account on the first business day after the day we receive your deposit. Funds from electronic deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first business day. Then, the funds will generally be available by the SECOND business day after the day of deposit.