If you’ve taken the hard decision to close down your business, you will need to take the required steps to dissolve it officially. Failure to do so might incur penalties that will take even longer to resolve. We will show you how to dissolve an LLC in Arkansas below. Fortunately, it isn’t complicated.
How to Dissolve an LLC in Arkansas?
What Does the Dissolution of an LLC in Arkansas Entail?
The dissolution of corporations or LLC requires you to file forms. In Arkansas, to ease the whole process, it would be best to get the votes of your company’s members who support your business entity’s closing. You must also have some money to settle business debts and pay off all outstanding fines and taxes.
Consequently, you will also need to file an article of dissolution at the Arkansas Secretary of State office. And no, you cannot file online. The file will serve as the conclusion to the termination of your company once the processing is done.
Importance of LLC Dissolution in Arkansas
The importance of dissolving your domestic LLC as fast as possible if certain conditions are met can’t be overemphasized. You need to dissolve your LLC if it is incurring more debts than generating revenue into your corporate account.
That’s because its registration with the country tax, licensing authorities and IRS make it eligible for tax payment.
Requirements and Steps To Dissolve An LLC
To learn how to dissolve an LLC in Arkansas, check out the steps below:
1. Adhere to the Arkansas LLC Operating Agreement
It differs from corporation to corporation, but standard procedure for this step typically looks like this:
2. Ending a Relationship with Business Tax Accounts & Tax Clearance
The second step to dissolving your LLC in Arkansas is to close off your business tax accounts. All Arkansas LLCs have multiple tax accounts with different departments in the state government.
Therefore, you need to terminate all the tax accounts to dissolve the company. Here are some common taxes you might need to pay off before you dissolve an Arkansas LLC.
Keep in mind, closing your tax accounts requires filing a final return to the agency in charge. However, some agencies might want you to submit other paperwork for your business.
NOTE: You will not be allowed to complete filing Articles of Dissolution for your Arkansas LLC with the Arkansas Secretary of State if your business entity owes taxes .
3. Articles of Dissolution
Articles of Dissolution are the final forms you file to terminate your business. These forms will finalize your company’s dissolution, and it will then cease to exist. In Arkansas, when filing Articles of Dissolution, you must also file a final report simultaneously.
You’ll be required to pay the minimum fee of $150 tax, separate from any other filing fee. Moreover, the Arkansas Secretary of State requires companies to turn in these documents by mail. You’ll have to download the form, fill it and then send it by mail. You can download the form online easily.
The Arkansas Secretary of State’s mailing address is 1401 Washington, Capital, Suite 250 Little Rock, AR 72201.
Next, you’ll have to send your Franchise Tax Report, the dissolution form, and a check for the tax to the Secretary of State. Your part in the official process to legally cancel your LLC is over. After the process is done, the state should process the mail filings within 3 to 5 days.
NOTE: You do not need a clearance document or a certificate from any department to start this process.
There are some things you should take note of before dissolving an Arkansas LLC.
You should know that the domestic LLC dissolution process can be in three forms.
A voluntary LLC dissolution occurs when its leaders think it’s best to stop offering business and commercial services. The decision might be personal due to bankruptcy or low cash flow.
A judicial LLC dissolution happens when a registered business is issued a court order due to the inability to adhere to state laws.
An administrative LLC dissolution happens when the Arkansas Secretary of State’s office orders it. This might be due to the business’ failure to file annual reports. It can also be due to the inability to adhere to state laws.
Dissolving an LLC in Arkansas can either be a good or a bad thing, depending on the dissolution’s circumstances. Either way, the requirements and steps on how to dissolve an LLC in Arkansas are straightforward, as highlighted above.
However, if you’d prefer not to personally handle the dissolution, then you can use a registered agent. They will charge a fee, but rest assured that the agent will file articles of dissolution, note all records, ensure filings have a company copy, and follow up to ensure your dissolution request is properly handled.