What is a foreign corporation in Arkansas?
- A foreign corporation or a Limited Liability Company is any entity or business entity that is incorporated or organized under the laws of a state or jurisdiction other than the State of Arkansas and willing to start business in the state of Arkansas.
- In order to conduct business in the state of Arkansas, the out of state entity must get a certificate of authority from the Arkansas secretary of state.
What happens, if an out of state entity does not obtain a certificate of authority to transact business?
- Foreign Corporations or Foreign limited liability companies with no certificate of authority cannot file a lawsuit in the State of Arkansas.
- A profit corporation or LLC that starts conducting business activity in Arkansas without authority may be liable for a civil penalty of not less than $100.00 and not more than $5,000.00.
How to apply certificate of authority in Arkansas?
- Application with the certificate of authority is filed with the Arkansas secretary of state along with the state filing fee.
- A foreign entity of Arkansas can be filed electronically with the Arkansas secretary of state.
- A certificate of existence and good standing letter of the home state must be filed with the certificate of authority. Your home state entity must be in a good standing.
- You can create a foreign entity Arkansas as a corporation, LLC, LP, LLP, LLLP and GP.
Instructions to maintain a foreign entity in Arkansas
- You are responsible to file a foreign entity annual report when due to conduct business in the state of Arkansas.
- You have to file an application of withdrawal, if you are ceasing operation in the state of Arkansas.
- Home State Employer Identification Number will be used to file taxes and you will not apply for a new EIN with the Internal Revenue service for the foreign corporation Arkansas.
- You will file state taxes of Arkansas and consolidated federal return.
- Arkansas business licenses will be applied, if applicable. Home state licenses cannot be used for the state of Arkansas to transact business.
How long does state of Arkansas take to process certificate of authority to do business in Arkansas?
Generally, the state of Arkansas takes 24-48 hours to process certificate of authority to transact business in Arkansas of an Out of State entity.
