Why Do You Need Arkansas Reinstatement For Your LLC Or Corporation?
A company that loses its good standing may have to pay noncompliance penalties, lose all the benefits that come with its entity type, and even face administrative dissolution or revocation. When that happens, an Arkansas reinstatement will be necessary to return the inactive, suspended, revoked, or administratively dissolved company back to good standing with the state.
What Is Needed To File For Reinstatement?
Returning to good standing requires your company to go through a certain process. Laws vary depending on the state, so the steps involved may be different. A dissolved company in Arkansas will have to determine the reason for falling into bad standing.
Possible reasons for administrative dissolution include the following:
- Your company failed to pay state franchise taxes and submit reports within 60 days after the due date.
- You failed to maintain a registered agent in the state for at least 60 days.
- You did not notify the Secretary of State that your company has a new registered agent within 60 days after the change.
Generally, there is no form for reinstatement. Your company will only have to file all delinquent tax reports and pay the corresponding penalties and fees. Submit all of these to the Business and Commercial Services (BCS) of the Secretary of State.
You will also need a tax clearance certificate from the Department of Finance and Administration (DFA) to prove that you have paid all the taxes your company owed. You will need the Authorization for Release of Tax Information form to request the certificate.
How Much Will It Cost To Reinstate?
There is no filing fee for the Arkansas reinstatement of a company. But you have to pay all past due franchise tax fees and the corresponding penalties.
The penalty for failure to file the company’s franchise tax report and fees is $25. There is also a 10% interest for every year you fail to pay. However, the total amount of taxes, penalties, and interest for a year will not be more than double the taxes your company owes.
How Long Will This Process Take?
LLC – The BCS normally takes around two business days to process an LLC reinstatement. If you submit in person, they will finish it while you wait. As for the DFA, they normally take two working days before they release the tax certification.
Corporation – An administratively dissolved corporation will have to give the Arkansas BCS two working days to finish processing the reinstatement. The DFA also needs two business days to determine the tax status of your company.
What Is Required On The Forms?
LLC – An Arkansas LLC will have to complete the Authorization for Release of Tax Information form by providing the following information:
- LLC Name
- Federal Employer Identification Number (FEIN)
- State Tax ID Number, If Known
- The Reason For The Request
- Name, Complete Address, And Contact Information Of Your Authorized Representative
- Name And Address For The Billing If It Is Different From The Contact And Delivery Information
Corporation – Requesting the tax clearance certificate requires Arkansas corporations to prepare the following information:
- Corporation Name
- FEIN
- State Tax ID Number, If Known
- The Reason For The Request
- Name, Complete Address, And Contact Information Of Your Authorized Representative
- Name And Address For The Billing If It Is Different From The Contact And Delivery Information
What Cannot Be Changed On The Forms?
LLC – You cannot change the name or address of your registered agent on the reinstatement form. You will need to submit a complete Notice of Change of Registered Agent Information form to the BCS.
Corporation – Arkansas corporations that need to change pieces of information related to their registered agent will have to file a Notice of Change of Registered Agent Information with the BCS.
What If My Company’s Name Is In Use When I Need To Reinstate?
Names of administratively dissolved companies in Arkansas will be safe for seven years after the date of dissolution. After that period, other entities can use it. When that happens, you will have to use a new name for your business.
How Can DoMyLLC Assist With Streamlining?
Getting back into good standing with the state of Arkansas requires you to complete all the necessary transactions and submit formal paperwork. If you need help, contact a reliable third-party organization like DoMyLLC. Our team of experts can provide personalized solutions that will fit your needs, and we are available for live support to assist you throughout the whole process of Arkansas reinstatement.
Arkansas Reinstatement FAQs
Can you change your registered agent on the reinstatement?
To do this, submit a completed Notice of Change of Registered Agent Information to the BCS for free.
How many annual reports can your company fail to submit before the state prohibits reinstatement?
There is no limit to the number of missed reports. However, all fees and penalties will continue to accumulate even while your company is administratively dissolved.
How long can your company be inactive with the state before it has to start over as a new business entity?
Arkansas does not let business owners abandon their administratively dissolved companies. BCS will require you to pay past due fees and penalties for the last three years before you can start a new business.