Determining Legal Form of Business/Incorporating
Determining Your Legal Form of Business
Be sure to research and discuss the specific advantages and disadvantages of each form of ownership with a qualified accountant or attorney before you finalize your decision. If a business files and never does business as a corporation, the business is still responsible for annual franchise taxes. The fee to dissolve a corporation is $50 plus the current year’s franchise taxes.
Incorporating Your Business
Contact the Arkansas Secretary of State’s Office to incorporate a business or to register a state trademark. A business is not required to incorporate. Employees in the Secretary of State’s Office will not give any legal advice regarding the pros and cons of incorporating.
There is a one-time, $50 filing fee to incorporate. Thereafter, a corporation will pay an annual franchise fee minimum of $150.
Incorporating a business offers individuals a safeguard in protecting personal assets from liability.
Incorporating ensures a business name will not be used by other incorporated businesses within the state. However, a trademark offers the best name protection. The Secretary of State’s Office can conduct a complimentary name or trademark search for the business.
Secretary of State’s Office
Business/Commercial Services Division
1401 W Capitol Ave, Suite 250
Little Rock, AR 72201
The legal structure you choose for your business will have tax, legal, and financial implications. This video addresses some basic questions about the legal forms of business.