A corporation whose charter has been revoked by the state is one whose legal existence has been put on hold. Or, to put it another way, the state has ruled that the corporation is no longer permitted to operate within its borders. This may occur for a number of reasons, including failing to pay taxes, fail to submit annual reports, or break state laws.
A revoked corporation has serious repercussions. It no longer has a legal existence, and all of its assets are frozen, making it unable to carry on business. Additionally, the corporation loses its limited liability shield, making its owners and stockholders personally accountable for any debts or legal obligations that the company accrues. Additionally, the corporation is unable to bring claims or represent itself in court.
Corporations and LLCs must pay the Arkansas Franchise Tax in order to conduct business in the state. Arkansas-registered corporations and limited liability companies are required to submit an annual franchise tax return and pay the applicable tax. The tax is due annually on May 1st and is calculated based on the company’s net worth or capital stock. Penalties and interest may apply if the return is not filed and the tax is not paid.
Yes, the Arkansas Secretary of State must receive an annual report from all LLCs registered in the state. The report is required to include the name of the LLC, the registered agent, the principal office address, and the names and addresses of all members and managers. It is due by May 1st of every year. Penalties including the revocation of the LLC’s charter may follow late submission of the report.
The term “charter revoked” describes when the state revokes or terminates a corporation’s or LLC’s charter. A corporation or LLC’s assets are frozen and its legal existence is terminated when their charter is cancelled. Its owners and stockholders may be held personally accountable for any debts or legal obligations incurred by the company, and it is unable to engage in any business operations. The business is unable to bring legal action or present a legal defense.
By submitting Articles of Amendment to the Arkansas Secretary of State, an LLC may indeed alter its name in that state. The new name of the LLC must be included in the Articles of Amendment, which also need to be signed by a representative. The Articles of Amendment must be filed and are subject to a fee; processing time is typically a few days. The name of the LLC is formally changed after the Articles of Amendment are accepted.
You must submit Articles of Dissolution to the Arkansas Secretary of State in order to dissolve a S Corporation there. The name of the S Corporation, the time of its creation, and a statement that the dissolution has been approved by the shareholders or board of directors must all be included in the Articles of Dissolution. Additionally, you will have to pay any unpaid taxes due and submit a final tax return to the Arkansas Department of Finance and Administration. You might also need to revoke any business permissions or licenses and inform any creditors or clients of the dissolution.