Quick Comparison: Arkansas Entity Types

This table provides a high-level comparison of Arkansas's business structures. Scroll horizontally on mobile devices.

Arkansas Limited Liability Companies (LLCs)

Arkansas LLCs are governed by the Arkansas Uniform Limited Liability Company Act, Ark. Code Ann. § 4-38-101 et seq. Arkansas also has a modern protected series statute for advanced liability segregation.

Standard LLCs: Formation

Articles of Organization

Arkansas LLCs are formed by filing Articles of Organization with the Arkansas Secretary of State.

Requirement	Details
LLC Name	Must include "Limited Liability Company," "LLC," or "L.L.C."
Principal Office Address	Physical address (can be in or outside Arkansas)
Registered Agent	Name and physical Arkansas street address (no PO boxes)
Management Structure	Member-managed (default) or manager-managed
Organizer	Name and address of person forming the LLC
Effective Date	Upon filing or specify future date

Filing Fees & Processing

Filing Method	Fee	Processing Time
Online (Arkansas.gov)	$50	1-3 business days
Mail	$50	7-10 business days

Operating Agreement

Annual Franchise Tax

Requirement	Details
Required?	✅ Yes
Fee	$150
Due Date	May 1 annually
Filing Method	Online via Arkansas Secretary of State

Protected Series LLCs

Arkansas adopted the Arkansas Uniform Protected Series Act, Ark. Code Ann. § 4-37-101 et seq., which allows an LLC to establish multiple "protected series" within a single umbrella entity.

How Protected Series Work

Formation & Requirements

• Operating Agreement: Must explicitly authorize protected series
• Record-Keeping: Separate books and records for each series
• Asset Segregation: Assets must be clearly associated with specific series
• Notice: Third parties must receive notice of series structure
• Registration: Each series may require separate filing with Secretary of State (check current rules)

Best Use Cases for Series LLCs

• Real estate holdings: Each property in a separate series to limit cross-liability
• Investment funds: Multiple investment portfolios under one umbrella
• Multi-brand businesses: Separate brands or product lines with liability segregation
• Asset protection planning: Coupled with DAPT structures for sophisticated planning

Professional Limited Liability Companies (PLLCs)

Arkansas allows licensed professionals to form Professional LLCs (PLLCs) for the practice of their profession.

Who May Form a PLLC

• Licensed attorneys
• Physicians and surgeons
• Dentists
• Architects
• Engineers
• Accountants (CPAs)
• Other licensed professionals (check with licensing board)

PLLC Requirements

• Members: All members must be licensed in the same profession (or related professions if board allows)
• Managers: If manager-managed, managers must be licensed professionals
• Name: May need to include profession or "PLLC" / "Professional LLC" (check licensing board rules)
• Liability: No shield for own malpractice; PLLC protects from other members' malpractice and general business debts
• Licensing board approval: Some professions require pre-formation approval from licensing authority

Arkansas Corporations

Arkansas corporations are governed primarily by the Arkansas Business Corporation Act of 1987, Ark. Code Ann. § 4-27-101 et seq., a modern MBCA-based statute. Legacy corporations may still operate under the older Chapter 26 statute.

For-Profit Corporations

Formation: Articles of Incorporation

Corporations are formed by filing Articles of Incorporation with the Arkansas Secretary of State.

Required Content for Articles of Incorporation

1. Corporate name (must include "Corporation," "Company," "Incorporated," or "Limited," or abbreviation; cannot end with "Company"/"Co." if immediately preceded by "and" or "&")
2. Number of authorized shares (and classes/series if more than one)
3. Registered agent name and Arkansas street address
4. Principal office address
5. Incorporator(s) name and address
6. Director information (if initial directors named)

Filing Fee

• Articles of Incorporation: $50
• Processing: Online filings typically processed within 1-3 business days

Annual Franchise Tax

Requirement	Details
Required?	✅ Yes
Fee	$150
Due Date	May 1 annually

Corporate Governance

• Shareholders: Elect directors, approve major transactions
• Board of Directors: Manage business and affairs; delegate to officers
• Officers: CEO, CFO, Secretary, etc.; appointed by board
• Bylaws: Required (not filed; kept in corporate records)
• Meetings: Annual shareholder meetings required

Tax Treatment

Tax Election	How It Works
C-Corporation (default)	Entity-level tax on corporate income; dividends taxed to shareholders (double taxation)
S-Corporation (election)	Pass-through tax; income flows to shareholders on K-1; must meet IRS eligibility (≤100 shareholders, all U.S. individuals/estates/trusts, one class of stock)

Benefit Corporations

Arkansas enacted the Arkansas Benefit Corporation Act, Ark. Code Ann. § 4-36-101 et seq., for mission-driven businesses.

Formation & Requirements

• Articles designation: Articles of incorporation must state that the corporation is a benefit corporation
• General public benefit: Must pursue "material positive impact on society and the environment" assessed using a third-party standard
• Specific public benefit (optional): May also identify specific benefits (e.g., environmental restoration, underserved communities)
• Annual benefit report: File with Secretary of State and provide to shareholders; must use third-party standard (e.g., B Lab)
• Shareholder approval for conversion: Typically requires two-thirds shareholder vote to convert to or from benefit corporation status

Governance & Accountability

Professional Entities

Professional Corporations (PCs)

Arkansas authorizes Professional Corporations under the Arkansas Professional Corporation Act, Ark. Code Ann. § 4-29-201 et seq. The Act makes the Business Corporation Act applicable to PCs "including their organization, corporate structure and powers" unless inconsistent.

Who May Form a Professional Corporation

• Attorneys
• Physicians and surgeons
• Dentists
• Chiropractors
• Veterinarians
• Certified Public Accountants (CPAs)
• Architects
• Professional engineers
• Other licensed professionals (consult licensing board)

Formation & Ownership Restrictions

• Purpose: PC must be organized solely for practice of licensed profession
• Shareholders: Only licensed professionals in same field (or related fields if allowed by licensing board)
• Directors/Officers: Must be licensed professionals
• Name: Must comply with licensing board rules (typically "P.C." or "Professional Corporation")
• Filing fee: $50 (same as regular corporation)
• Licensing board approval: Some professions require pre-formation approval or notification

Liability

PC vs PLLC Comparison

Factor	Professional Corporation (PC)	Professional LLC (PLLC)
Structure	Corporation (MBCA + PC Act overlay)	LLC (ULLCA + professional overlay)
Tax default	C-corp (can elect S-corp)	Pass-through (can elect C-corp/S-corp)
Formality	High (board, bylaws, minutes, shareholder meetings)	Medium (operating agreement, less formality)
Annual franchise tax	$150	$150
Liability shield	Yes (except own malpractice)	Yes (except own malpractice)
Best for	Traditional firms; S-corp tax planning; investor-backed practices	Modern firms; pass-through simplicity; flexible management

Choosing Between PC and PLLC

Partnerships

General Partnership

General partnerships in Arkansas are governed by the Arkansas Uniform Partnership Act (1996), Ark. Code Ann. § 4-46-101 et seq., a modern RUPA-style statute.

Formation

• No formal filing required: Partnership arises by default when two or more persons carry on a business for profit as co-owners
• Partnership agreement: Recommended but not required (oral or written)
• Optional trade name registration: If doing business under name other than partners' names

Liability

Limited Liability Partnership (LLP)

Arkansas allows general partnerships to register as LLPs to obtain liability protection.

Formation

• General partnership files statement of qualification with Arkansas Secretary of State
• Fee: Check current SOS fee schedule (typically $50-$100 range)
• Name requirement: Must include "LLP," "L.L.P.," or "Limited Liability Partnership"
• Annual report: Required (consolidated with franchise tax filing)

Liability Protection

LLP partners are NOT personally liable for partnership obligations arising from errors, omissions, negligence, or misconduct of another partner or employee. Each partner remains liable for:

• Their own professional malpractice or negligence
• Obligations they personally guarantee
• Certain partnership obligations (check Arkansas LLP statute for specifics)

Best Use Cases

• Law firms: Lawyers want protection from other partners' malpractice
• Accounting firms: CPAs shielded from co-partner negligence
• Architecture/engineering firms: Professional liability isolation
• Consulting practices: Multi-partner professional services

Limited Partnership (LP)

Arkansas LPs are governed by the Arkansas Uniform Limited Partnership Act, Ark. Code Ann. § 4-47-101 et seq.

Structure

• General partners: Manage partnership; unlimited personal liability (unless LLLP)
• Limited partners: Contribute capital; limited liability (capped at investment); no management control

Formation

• Filing: Certificate of Limited Partnership with Arkansas Secretary of State
• Fee: $50
• Annual franchise tax: $150

Best Use Cases

• Real estate investments: GP manages properties, LPs provide capital
• Family limited partnerships (FLPs): Estate planning and wealth transfer
• Passive investment vehicles: Active manager + passive investors

Limited Liability Limited Partnership (LLLP)

Arkansas recognizes LLLPs under the LP statute – limited partnerships where even general partners have limited liability protection.

• Formation: File as LP with LLLP designation or election
• Benefit: All partners (GPs and LPs) have limited liability
• Fee: $50 formation fee
• Annual franchise tax: $150
• Use case: Preferred over standard LP when general partners want liability protection; common in asset protection and FLP structures

Nonprofit Corporations

Arkansas Nonprofit Corporation Acts

Arkansas has two parallel nonprofit statutes:

1. Arkansas Nonprofit Corporation Act of 1993, Ark. Code Ann. § 4-33-101 et seq. – applies to most new nonprofits; classifies entities as public benefit, mutual benefit, or religious
2. Old nonprofit code, Ark. Code Ann. § 4-28-201 et seq. – older entities may still be organized under it; SOS fee schedule distinguishes between old-code and new-code nonprofits

Formation

Articles of Incorporation

• Filing: Articles of Incorporation with Arkansas Secretary of State
• Fee: Typically lower than for-profit corporations (check current fee schedule)
• Required content:
  • Corporate name (need not include corporate designator if nonprofit)
  • Statement that corporation is nonprofit
  • Purpose (charitable, educational, religious, scientific, or other nonprofit purpose)
  • Classification (public benefit, mutual benefit, or religious under 1993 Act)
  • Registered agent and office
  • Initial directors (if named)
  • Dissolution clause (assets must go to another tax-exempt entity)

Annual Reports & Franchise Tax

Requirement	Details
Annual report required?	Check with SOS; nonprofits may have reduced or waived reporting
Franchise tax?	Generally exempt if organized for exempt purposes, but check with Arkansas DFA

Federal Tax-Exempt Status

Governance & Compliance

• Board of Directors: Required; must be at least 3 directors for public benefit corporations
• Members vs. Non-Member: Can be member-based (members elect board) or non-member (board self-perpetuating)
• Conflict of interest policy: Recommended for 501(c)(3) organizations
• Annual meetings: Board meetings required; member meetings if member-based
• Attorney General oversight: Public benefit nonprofits are subject to AG oversight for charitable assets and compliance

Charitable Solicitation Registration

Arkansas requires charities soliciting contributions to register with the Attorney General's office. Check the AG's charitable organizations division for current requirements and exemptions.

Formation Process & Fee Summary

Arkansas Filing Fees Summary

Service	Fee	Notes
LLC Articles of Organization	$50	Online or mail
Corporation Articles of Incorporation	$50	For-profit corporation
Benefit Corporation Articles	$50	Same as for-profit corp
Professional Corporation	$50	Same as for-profit corp
Nonprofit Corporation	Check SOS	May be reduced fee
Limited Partnership Certificate	$50	LP or LLLP
LLP Registration	Check SOS	Convert GP to LLP
Foreign LLC/Corp Registration	$50	Certificate of Authority
Name Reservation	$25	120 days
Registered Agent Change	Check SOS	Amendment fee

Annual Franchise Tax

Entity Type	Annual Franchise Tax	Due Date
LLC (domestic or foreign)	$150	May 1
Corporation (for-profit, domestic or foreign)	$150	May 1
Professional Corporation	$150	May 1
Benefit Corporation	$150	May 1
Limited Partnership	$150	May 1
LLP	$150	May 1
Nonprofit Corporation	Generally exempt	N/A

Step-by-Step Formation: LLC Example

Post-Formation: First 90 Days

Timing	Action
Immediately	File Articles of Organization; obtain EIN
Within 7 days	Adopt operating agreement; open business bank account
Within 30 days	Register for Arkansas sales tax (if applicable); obtain local business licenses
Within 60 days	Set up accounting/bookkeeping system; consider S-corp election if beneficial (Form 2553)
Within 90 days	Review insurance needs (general liability, professional liability, etc.); establish contracts/templates

Ongoing Compliance & CTA/BOI Status

Annual Compliance Requirements

Entity Type	Franchise Tax Required?	Fee	Due Date
LLC (domestic)	✅ Yes	$150	May 1
Foreign LLC	✅ Yes	$150	May 1
Corporation (for-profit)	✅ Yes	$150	May 1
Nonprofit Corporation	Generally exempt	N/A	N/A
Professional Corporation	✅ Yes	$150	May 1
Limited Partnership	✅ Yes	$150	May 1
LLP	✅ Yes	$150	May 1
General Partnership	❌ No	N/A	N/A

Other Ongoing Requirements

Corporate Transparency Act (CTA) & Beneficial Ownership Information (BOI)

Foreign Reporting Companies (Still Subject to BOI)

CTA/BOI Summary by Arkansas Entity Type

Entity Type	BOI Reporting Required?
Arkansas LLC (domestic)	❌ No (exempt as of March 2025)
Arkansas Corporation (domestic)	❌ No (exempt as of March 2025)
Arkansas Partnership (domestic)	❌ No (exempt as of March 2025)
Foreign entity registered in Arkansas	✅ Yes (unless exempt)

Common Compliance Pitfalls (Law-Office Perspective)

My Services – Arkansas Entity Formation

I handle Arkansas entity formations as an attorney-led service. You work directly with me—an experienced business attorney—through the entire process.

Service Packages

Arkansas-Specific Add-On Services

Service	Fee
Foreign LLC/Corp registration (Certificate of Authority)	$800
Protected series LLC setup (with operating agreement and series designation)	$2,000+
Benefit corporation setup (with benefit report template)	$1,200+
Professional corporation/PLLC setup (with licensing board coordination)	$1,500+
S-corp election (Form 2553 preparation and filing)	Included in Standard/Advanced
Registered agent service (annual)	$200/year
Annual franchise tax filing service	$200/year
Arkansas tax registration (sales tax, withholding)	$300

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