The process of winding down your limited liability corporation (LLC) can be intimidating if you’re a business owner in Arkansas. But it is possible to dissolve your LLC in a pretty simple manner with a little preparation and information. What you need to know is as follows:
Step 1: Conduct a vote To dissolve your LLC, the members must first vote on the matter. The date of the vote, the names of the participants, and the result of the vote should all be included in the written record of this vote. The majority of the time, all of the LLC’s members must agree to dissolve the company.
The next step is to file Articles of Dissolution with the Arkansas Secretary of State after you’ve held a vote and received the required approval. This document serves as official notification to the state that your LLC has ceased operations. The name of the LLC, the date the vote to dissolve was taken, the date the dissolution becomes effective, and the signature of an authorized member must all be included in the Articles of Dissolution.
You must settle any outstanding debts, including taxes, debts, and fees owed to the state, before your LLC can be formally dissolved. This may entail paying the franchise tax that LLCs are required to pay to the state of Arkansas each year. The Arkansas Taxpayer Access Point (TAP) system, which enables you to submit and pay your taxes online, can be used to pay the franchise tax.
Step 4: Inform Debtors, Creditors, and Other Parties Notifying your LLC’s creditors and any interested parties of the dissolution is the last step after filing the Articles of Dissolution and paying any outstanding debts. This covers any suppliers, clients, or other business associates who might be impacted by the termination of your LLC. You can do this by sending each creditor and party a written notification via certified mail with return receipt requested.
You can work directly with the Secretary of State if you want to incorporate a new firm in Arkansas. Articles of Incorporation, which normally need information regarding your business’s name, address, purpose, and registered agent, must be filed in order to incorporate your business.
A certificate of good standing is proof that your LLC is registered to conduct business in Arkansas and that all of its filings and obligations are current. You can ask the Secretary of State’s office for an Arkansas Certificate of Good Standing. This request can be subject to a charge.
A registered agent is a person or organization chosen to accept legal documents on your LLC’s behalf. LLCs must have a registered agent in Arkansas who is physically present in the state. Legal documents can only be delivered to the registered agent at a physical street address (not a P.O. box) in Arkansas. This is significant because the LLC’s registered agent must receive service of process for legal papers like lawsuits.