Arkansas

LOCATION & LEGAL SYSTEM

Arkansas is one of the “Southern States” of America located north of Louisiana, east of Oklahoma, South of Missouri and West of Mississippi. Once a jumping off point for wagon trains to the west Arkansas now promotes itself as “the Natural State”. It offers natural hot springs and camping, hiking, fishing and hunting in the Ozark and Ouachita Mountains which makeup most of the west and north of the state. Despite being landlocked water is important with many major and minor tributaries running across the Delta area into the great Mississippi River that forms the Eastern border of Arkansas.

In the United States Corporate Law is the responsibility of individual states rather than the Federal (National) Government. Most states have very similar corporate laws with, usually, only minor variations. AR Corporate Secretaries can form Limited Liability Companies in most US states but we offer Arkansas because it has virtually no local filing requirements and because, unlike in other states, a single member LLC can carry on business anywhere in the United States without having to file a tax return.

LIMITED LIABILITY COMPANY

A Limited Liability Company (LLC) is not a taxable entity. Profits are passed through to members who then pay taxes (be they individuals or companies) wherever they are tax resident

Arkansas is not one of the major US jurisdictions. This could be an advantage as it will be less obviously a tax avoidance vehicle. However its lack of local filing requirements can complicate the opening of bank accounts or borrowing to purchase property or assets.

TAXATION/FISCAL REGIME

Despite the fact that an Arkansas LLC is not taxable entity it will need to file annual income tax returns with Federal Internal Revenue Service (IRS) and/or with the Arkansas Department of Finance and Administration in the following circumstances:

If an LLC is conducting business in Arkansas but not elsewhere in the US and has two or more members it will need to file an income tax return with the Arkansas Department of Finance and Administration and with the IRS.

If an LLC is conducting business in the US but not in Arkansas it will have to file an income tax return with the IRS.

An Arkansas LLC conducting business in US and having only one member is not required to file an income tax return. However the income and expenses will need to be reported on the member’s individual tax return wherever they are tax resident. There is no requirement to file financial statements, but a company must keep records to accurately reflect its financial affairs.

INCORPORATION TIMESCALE/NAMES

LLC names must contain the words “Limited Liability Company” or “Limited Company” or abbreviations of these such as LLC, LC or Ltd. Co. The LLC name must be distinguishable upon the records of the Secretary of State from the name of any limited liability company, limited partnership, or corporation existing under the laws of Arkansas or authorised to transact business in Arkansas. Allowing for time differences, names can be checked and reserved instantly and incorporation takes place on the same or the next day. However, even though we use Couriers it can take up to 2 weeks for documents to arrive from Arkansas and for this reason we do try to keep a few stock companies.

FEES FOR ARKANSAS LLCs

We charge £450 to incorporate an Arkansas LLC. This includes the first year’s registered office and registered agent fees and all government fees. Thereafter there is an annual fee (due on 1^st May each year) of US$445 again including registered office, registered agent and government fees.

We can help and advise you in respect of the opening and management of bank accounts and the provision, if required, of company officers or managers.

HOW TO ORDER

Simply call us on 01952 270270 or send an email to:

ymf@arcorporatesecretaries.co.uk

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission. Prices are subject to change.