Incorporate in Arkansas for FREE^*

Incorporation is the process of registering a business as a corporation and making it recognizable under law as its own legal entity. Incorporating a business can be a complicated process because each state has its own requirements for registering and operating a business as a corporation. Knowing the necessary steps and forms, however, will help keep you organized and stress-free. 

With our easy business registration service, you simply answer a few questions and we create your initial paperwork and file it with the state for you. The first business entity registration is free for Rocket Legal+ members—you pay only the state filing fees. Then, you can make and personalize all the legal documents you need for your business. Store everything online in your Rocket Lawyer account.

What is a C-Corp? 

A C-Corp, or C-Corporation, is a common business entity type. More specifically, a C-Corp is a corporation taxed under Subchapter C of the U.S. Code. Under Subchapter C, corporations are subject to tax at both the corporate and individual level (sometimes called “double taxation”). Depending on the situation, this may result in lower or higher tax burdens for the shareholders. 

C-Corps allow for anyone to be an investor and for an unlimited number of shareholders and multiple share classes.

As with other types of corporations, C-Corporations provide a common and well-known legal structure for businesses and offer their shareholders some limited liability. Except for certain instances of fraud or misconduct, a shareholder is not liable for the debts or obligations of a corporation beyond the shareholder's investment into the corporation.

Corporations are treated as a C-Corp by default, unless another type of tax treatment is selected, such as an S-Corp.

What is an S-Corp? 

Like C-Corps, S-Corps provide a common and well-known legal structure for businesses and offer their shareholders some limited liability. However, S-Corps have two main differences from C-Corps: they are taxed differently and they have more restrictions with shares.

An S-Corporation, or S-Corp, is an IRS election that allows a company to be treated like an LLC for income tax purposes, that is, as a “pass-through" entity. Instead of income taxes being owed at both the company and individual level, the income of an S-Corp is only taxed at the individual level, which means it passes through the company directly to the owners and shareholders. Again, this may result in lower or higher tax burdens for the shareholders depending on the situation.

S-Corps have more restrictions regarding shares and shareholders than C-Corps. Specifically, S-Corps can have no more than 100 shareholders, only one class of shares, and only U.S. residents or citizens as investors.

One area of common confusion is what type of entity can elect S-Corp status. Remember that this election is simply a tax choice, not a governance or legal structure choice. Both limited liability companies (LLCs) and corporations can choose S-Corp status if they qualify under the IRS's guidelines.

An S-Corp and a C-Corp are almost the same in most respects. They have the same liability protections, structure, management and compliance regulations. Here are the main differences you should know when making your decision:

• Ownership Rules: A C-Corp has no limits on the number of shareholders or stock classes it can have. An S-Corp can only have 100 shareholders and one stock class. All shareholders must be citizens or legal residents of the United States.
• Taxes: A C-Corp is taxed as a separate entity from its shareholders. The business must file corporate taxes, and shareholders must also pay taxes on any dividends they receive. An S-Corp does not pay corporate taxes. It is a "pass-through" entity, which means owners report their shares of income on their personal tax returns.
• Documents: A C-Corp is the default designation in Arkansas. If you want your corporation to be recognized as an S-Corp, you'll have to file IRS Form 2553, Election by a Small Business Corporation. Arkansas also requires that you file a separate state form, Form AR1103, along with a copy of your federal Notice of Acceptance as an S-Corp.

Your corporation’s name should be unique and make a statement about your business. Make sure it complies with the following Arkansas requirements:

• Your name must be different from that of any other business registered with the Arkansas Secretary of State.
• The name must include "Corporation," "Incorporated," "Limited," "Company," or an abbreviation of one of these terms. These terms cannot be the final word in the name.
• Your name can't be misleading to the public. It can't suggest a business purpose other than what your business actually does. A clothing store should not call itself "Incorporated Electronics Depot."

Need help coming up with a business name for your corporation? Try the Rocket Copilot™ AI Business Name Generator, a free tool to help you brainstorm business names and get started registering your corporation. 

Each state has its own personnel requirements for incorporating. In Arkansas, a corporation should have at least three directors, unless there are less than three shareholders of record. In that case, the number of directors cannot be less than the number of shareholders.

Arkansas does not require that directors live in the state and does not set any limits on owners' or directors' ages.

You do not have to list your directors' names and addresses in your Articles of Incorporation, but you do need to include the names and addresses of all incorporators.

In addition to personnel requirements, your Arkansas Articles of Incorporation should address some concerns:

Every corporation needs a registered agent. This is the person or business responsible for accepting any legal, tax, and government documents on behalf of the business. Your agent must have a physical Arkansas address, not a post office box, and be available during regular business hours. Arkansas requires that you list your agent's name and address in your Articles of Incorporation. We can help you designate a registered agent when you incorporate with us.

You must also include the following in your Articles of Incorporation in Arkansas:

• The number of shares of stock the corporation is authorized to issue.
• The share classes and par value, if any.
• The corporate name.
• The names and addresses of all incorporators.
• The corporation's primary purpose.

Nearly every state has standard processing times, but not all provide expedited processing for corporations. In Arkansas, there are a few fees that you may be charged when you register your business as a corporation. They include the following:

State fee: $50.

Rocket Lawyer filing fee: $0 $99.99.

• First filing FREE* for Rocket Legal+ members (excluding state fees).
• Get additional filings HALF OFF with Rocket Legal+.

Processing time: 5-7 business days.

Note: The above state fees and processing times (including expedited processing fees and times) are provided as a summary and may or may not encompass various fees mandated by your state or local authorities. Your state may also change these fees and processing times over time and without notice. If you have questions, speak to a Rocket Lawyer Business Pro to understand the costs and processing times that apply to your specific filing.

Businesses can save up to $2,500 per year with a Rocket Legal+^™ membership. This calculation is based on total savings on an initial business registration and registered agent, trademark, and business tax filing services for Rocket Legal+ members (a total cost of $924.97) compared to Rocket Legal members (a total cost of $1,949.96). This is in addition to savings on the average cost of 5 hours for document preparation by a non-Rocket Lawyer network attorney at the average attorney hourly rate in the U.S. of $300 (an estimated cost of $1,500 when purchased without any form of Rocket Lawyer membership) compared to unlimited use of customizable business documents for both Rocket Legal+ and Rocket Legal members at no extra cost.

Yes – although taxes are a chore, your new corporation must pay them. One of the first things you'll need before doing any business is an employer identification number, or EIN. This is a federal tax ID issued by the IRS that functions similarly to a Social Security number. All corporations with employees need one. 

We have some more information on the tax structures of S-Corps and C-Corps.

Arkansas requires that you create two types of records:

• Corporate Bylaws set out the structure and operating rules of your corporation. You may include any provisions you like in your bylaws, as long as they're consistent with your Articles of Incorporation and Arkansas law.
• Corporate Minutes create a record of everything that happens during official meetings of your board or shareholders. Minutes should be recorded by your corporation's incorporator or a director. You must keep your meeting records for three years.

These documents work together to protect your company's status as a corporation. You don't have to file either of them with the state. Just keep them in your corporate records book, along with your other important papers. We help you compare Corporate Meeting Minutes requirements and Bylaws requirements from state to state.

We wish you success with your new Arkansas corporation! You can count on Rocket Lawyer for all the business, tax, and legal help you need at a price you can afford.

If you are planning to operate in another state, you may need to register a corporation in that state. Rocket Lawyer can help you determine which states you should register in.

Other states may have their own rules for foreign corporations that originate in Arkansas or domestic corporations that also operate in Arkansas. Talk to an attorney to understand the legal and tax requirements for the state(s) in which you plan to operate.