Form a S-Corp in Arkansas
Everything you need to know about forming a S-Corp in Arkansas. Filing fees, requirements, timeline, and step-by-step guidance.
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How to File
Choose a Corporate Name
Select a unique name that includes a required designator such as 'Corporation,' 'Incorporated,' 'Company,' or an abbreviation thereof. Search the Arkansas Secretary of State business name database to confirm availability before filing.
30 minutes
Appoint a Registered Agent
Designate a registered agent with a physical street address in Arkansas who is authorized to receive legal and official documents on behalf of the corporation. The registered agent can be an individual resident or a qualified commercial registered agent service.
30 minutes
File Articles of Incorporation
Prepare and file the Articles of Incorporation with the Arkansas Secretary of State, either online through the Arkansas eStar portal or by mail. The filing fee is $50 and the document must include the corporation's name, registered agent, number of authorized shares, and incorporator information.
1-2 hours
Draft Corporate Bylaws
Create corporate bylaws that govern the internal operations of the corporation, including the roles of directors and officers, meeting procedures, and voting rights. While not filed with the state, bylaws are required to be kept at the corporation's principal office.
2-4 hours
What's Next After Filing
Once your S-Corp is officially formed, you'll want to complete these important steps:
- •Hold Organizational Meeting & Issue Stock — Conduct the initial organizational meeting of the board of directors to adopt bylaws, appoint officers, and issue stock to shareholders. Document this meeting with formal minutes and ensure stock issuance complies with S-Corp eligibility rules (maximum 100 shareholders, U.S. residents only, one class of stock).
- •Obtain EIN and File IRS Form 2553 — Obtain a federal Employer Identification Number (EIN) from the IRS at no cost, then file IRS Form 2553 (Election by a Small Business Corporation) to elect S-Corporation tax status. The election must be filed by March 15 for the current tax year or within 75 days of incorporation for it to apply in the first year.
- •Register for Arkansas State Taxes and Licenses — Register with the Arkansas Department of Finance and Administration for applicable state taxes, including Arkansas corporate income tax, sales tax if applicable, and employer withholding if hiring employees. Obtain any required local business licenses or permits specific to your industry and municipality.
Advantages
- ✓Pass-through taxation avoids federal double taxation, with profits and losses reported on shareholders' personal tax returns
- ✓Shareholders who are active in the business may reduce self-employment taxes by splitting income between salary and distributions
- ✓Provides strong personal liability protection, shielding shareholders from corporate debts and legal judgments
- ✓Lends credibility and a formal corporate structure that may be attractive to investors, lenders, and business partners
Considerations
- •Strict IRS eligibility restrictions limit S-Corps to 100 shareholders, all of whom must be U.S. citizens or permanent residents, with only one class of stock allowed
- •Arkansas imposes both an annual franchise tax and state corporate income tax obligations, adding administrative and financial burden compared to sole proprietorships or partnerships
- •More complex formalities required than an LLC, including mandatory bylaws, regular board meetings, recorded minutes, and strict corporate governance compliance
Annual Obligations
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