How to Start a C-Corp in Arkansas (Quick Answer)
To start a C-corp in Arkansas, file Articles of Incorporation with the Arkansas Secretary of State, name a registered agent, and pay the $50 filing fee. Once the state accepts it, your corporation legally exists.
After that, you adopt bylaws, appoint directors and officers, issue stock, and get an EIN from the IRS. Arkansas replaces the usual annual report with a Franchise Tax Report due every May 1, and its corporate income tax is low.
| Filing document | Articles of Incorporation |
| Where to file | Arkansas Secretary of State |
| Filing fee | $50 |
| Registered agent | Required, with a physical Arkansas street address |
| EIN | Required, free from the IRS (Form SS-4 by phone, fax, or mail if you have no SSN or ITIN) |
| Franchise Tax Report | Arkansas's yearly filing; $150 minimum for a stock corporation (or 0.3% of outstanding capital stock, whichever is greater), due May 1 |
| Corporate income tax | Graduated, topping out at 4.3% |
| Foreign owner (25% or more) | File Form 5472 with Form 1120 every year, or face a $25,000 minimum penalty |
First-year cost: $50 to file, plus a registered-agent service if you use one, commonly $50 to $150 a year. Your first Franchise Tax Report is due the May 1 after your formation year.
Arkansas does not use a separate annual report. Instead, every corporation files a Franchise Tax Report each year by May 1.
For a stock corporation the minimum is $150, or 0.3% of outstanding capital stock if that is higher. The corporate income tax is graduated and low, topping out at 4.3%, so Arkansas is inexpensive to run.
TL;DR
- The yearly filing is a Franchise Tax Report due May 1: $150 minimum for a stock corporation, and the corporate income tax tops out at a low 4.3%.
- Step 1, name: pick a unique name with a corporate designator (Inc., Incorporated, Corporation, or Corp.) and check it with the Secretary of State.
- Step 2, registered agent: name one with a physical Arkansas street address.
- Step 3, Articles of Incorporation: file with the Secretary of State for $50.
- Step 4, bylaws: adopt internal bylaws and keep them with your records.
- Step 5, directors and officers: appoint the board and officers and hold an organizational meeting.
- Step 6, issue stock: authorize and issue shares, keep a stock ledger, and file the 83(b) election within 30 days if your shares vest.
- Step 7, EIN: get a free EIN from the IRS, by Form SS-4 if you have no SSN or ITIN.
- Foreign owner (25% or more): file Form 5472 with Form 1120 every year, or risk a $25,000 penalty.
- Ongoing: the Franchise Tax Report by May 1 ($150 minimum), plus the graduated corporate income tax up to 4.3%.
Why Form a C-Corp in Arkansas?
Arkansas offers low formation and ongoing costs and a corporate income tax that has been falling.
- A $50 filing fee and a low graduated corporate income tax.
- Central-US logistics and a low cost of doing business.
- Online filing through the Secretary of State.
If you plan to raise venture capital, investors will most likely want a Delaware C-corp. If you will run the business in Arkansas and not raise venture money, forming in Arkansas avoids registering and paying in two states.
Step 1: Choose and Reserve Your Corporate Name
- Include a corporate designator such as "Inc.", "Incorporated", "Corporation", or "Corp."
- Search the Secretary of State's business database to confirm the name is available and different from existing entities.
- Arkansas lets you reserve a name for 120 days for a fee if you are not ready to file.
Step 2: Appoint an Arkansas Registered Agent
Every Arkansas corporation must name a registered agent with a physical Arkansas street address, available during business hours to receive legal and state documents.
- The agent can be a person or a company, but needs a real Arkansas address, not a PO box.
- The address is public record, so many owners use a commercial service.
- A commercial agent commonly costs $50 to $150 a year.
Step 3: File Your Articles of Incorporation
The Articles of Incorporation is the filing that legally creates your corporation. You file it with the Arkansas Secretary of State.
- It lists the corporate name, registered agent, incorporator, and the number of shares the corporation is authorized to issue.
- The fee is $50.
- Once the state accepts it, your corporation exists and its compliance calendar begins.
Step 4: Adopt Corporate Bylaws
Bylaws are the internal rulebook for how the corporation is run. They are not filed with the state, but a corporation is expected to have them, and banks and investors often ask to see them.
- They set out how directors and officers are elected, how meetings and votes work, and how shares are handled.
- They stay with your records, not with the Secretary of State.
- Skipping them can weaken the separation between you and the corporation that liability protection depends on.
Step 5: Appoint Directors and Hold the Organizational Meeting
A corporation is run by a board of directors, who appoint the officers that handle day-to-day work. Right after formation, the incorporator or initial directors hold an organizational meeting, or sign a written consent in place of one.
- Appoint the initial board and elect officers (usually at least a president, secretary, and treasurer; one person can hold several roles).
- Adopt the bylaws and authorize the issuance of stock.
- Keep signed minutes or the written consent with your records.
Step 6: Authorize and Issue Stock
Issuing stock is how founders get their ownership, and it is easy to rush. The board authorizes shares, then the corporation issues them to the founders and any early shareholders.
- Issue shares to each founder and record what they paid (cash, property, or services).
- Keep a stock ledger, a running record of who owns how many shares.
- Note your capital stock. Arkansas's franchise tax can be based on outstanding capital stock, so it ties loosely to what you issue.
The 83(b) election, and its 30-day deadline: if your founder shares vest over time, you generally have 30 days from the grant date to file an 83(b) election with the IRS.
It lets you be taxed on the small value at grant instead of the higher value as the stock vests. The 30-day window cannot be extended, and missing it can be expensive.
Step 7: Get an EIN, Even Without an SSN
An EIN is your corporation's federal tax ID, needed to file taxes, run payroll, and open a bank account. It is free from the IRS.
- With an SSN or ITIN, apply online and get the EIN in minutes.
- Without an SSN or ITIN, apply on Form SS-4 by phone, fax, or mail.
- The EIN is always free; you never pay the IRS for one.
Open a US Business Bank Account
Once you have the EIN, open a dedicated business bank account before money moves through the corporation.
- Keeping corporate and personal funds separate helps protect the liability shield; commingling them is a common reason courts pierce it.
- Banks usually ask for the filed Articles of Incorporation, the EIN letter, and often the bylaws or a board resolution.
- A separate account also makes bookkeeping and the corporate tax return simpler.
If Your Arkansas C-Corp Is Foreign-Owned
An Arkansas C-corp that is 25% or more owned by a non-US person has an extra federal filing that many international founders miss.
- The corporation files Form 5472 with its annual Form 1120 to report transactions with the foreign owner, such as money put in or paid out for services.
- It is required every year there are reportable transactions, even with little or no profit.
- The penalty is steep: a missed or late Form 5472 starts at $25,000 per form, per year.
Handle Arkansas's Ongoing Compliance
Two obligations run every year: the Franchise Tax Report and the corporate income tax.
The Franchise Tax Report (Due May 1)
- Arkansas replaces the annual report with a Franchise Tax Report, filed with the Secretary of State by May 1.
- For a stock corporation the minimum is $150, or 0.3% of outstanding capital stock if that is greater.
- Missing it adds penalties and interest and can put the corporation out of good standing.
Arkansas Corporate Income Tax (Up to 4.3%)
- Arkansas taxes corporate income on a graduated scale that tops out at 4.3%, among the lower top rates in the country.
- It is filed with the Department of Finance and Administration, separate from the federal Form 1120.
- Federally, the corporation files Form 1120 and pays 21% corporate tax, due the 15th day of the 4th month after year-end.
How Much Does It Cost to Start a C-Corp in Arkansas?
| What you pay | Amount | When |
|---|---|---|
| Articles of Incorporation filing | $50 | One time, at formation |
| Registered-agent service (optional) | ~$50 to $150 a year | Yearly, if you use one |
| Franchise Tax Report | $150 minimum (or 0.3% of outstanding capital stock) | Yearly, by May 1 |
| Arkansas corporate income tax | Graduated, up to 4.3% | Yearly |
| Federal corporate tax | 21% of profits | Yearly, with Form 1120 |
How Long Does It Take to Start a C-Corp in Arkansas?
- Online filings with the Secretary of State are usually processed within a few business days.
- The EIN follows: minutes online with an SSN or ITIN, or same day to several weeks by Form SS-4 without one.
- Bylaws, the organizational meeting, and issuing stock happen right after the state approves the filing.
Common Mistakes to Avoid
- Missing the May 1 Franchise Tax Report, which is Arkansas's version of the annual report and adds penalties if late.
- Assuming there is a separate annual report. The Franchise Tax Report covers it.
- Missing the 30-day 83(b) deadline on vesting founder stock.
- Overlooking Form 5472 if the corporation is 25% or more foreign-owned.
- Using a PO box for the registered agent, which Arkansas does not accept.
How FinStackk Helps
FinStackk is an accounting and tax compliance platform for U.S. businesses, taking you from incorporation through ongoing accounting, tax, and compliance in one place.
We handle Arkansas C-corp formation, from the Articles of Incorporation to the EIN, through Fin-Start, including the Arkansas registered agent.
Once the corporation exists, Fin-Tax keeps the federal Form 1120 deadline and the Arkansas corporate income tax on a proactive calendar. Complyy tracks the Franchise Tax Report due May 1 and your registered-agent renewal. Book a free demo to see them in action.
FAQ
Does Arkansas have an annual report?
Not a separate one. Arkansas uses a Franchise Tax Report, filed with the Secretary of State by May 1, in place of the usual annual report. For a stock corporation the minimum is $150, or 0.3% of outstanding capital stock if that is greater. Missing it adds penalties and can cost your good standing.
How much does it cost to start a C-corp in Arkansas?
It costs $50 to file the Articles of Incorporation with the Secretary of State. Add a registered-agent service if you use one. Going forward, the main recurring items are the Franchise Tax Report ($150 minimum) due May 1 and the graduated corporate income tax, which tops out at 4.3%.
What is Arkansas's corporate income tax rate?
Arkansas taxes corporate income on a graduated scale that tops out at 4.3%, among the lower top rates in the country, and the state has been reducing it. It is filed with the Department of Finance and Administration, on top of the 21% federal corporate tax on Form 1120.
Is it better to form a C-corp or an LLC in Arkansas?
Both Arkansas corporations and LLCs file a Franchise Tax Report, though the LLC's is a flat $150 while a corporation's can rise with capital stock. An LLC is simpler and taxed once, while a C-corp suits founders who plan to raise venture capital or keep earnings in the business. A C-corp is taxed twice, once at the corporate level and again on dividends.
Should I form my C-corp in Arkansas or Delaware?
If you plan to raise venture capital, Delaware is what investors expect. If you will operate in Arkansas and not raise venture money, forming in Arkansas avoids registering and paying in two states, since a Delaware corporation doing business in Arkansas still has to register and pay here. Choose based on where you operate and whether you will raise money.
Can a non-US resident start an Arkansas C-corp?
Yes. Arkansas sets no citizenship or residency requirement to own a corporation. You will need an Arkansas registered agent and an EIN, which you apply for on Form SS-4 by phone, fax, or mail without an SSN.
If a non-US person owns 25% or more, the corporation also files Form 5472 with its Form 1120 every year, with a $25,000 minimum penalty for missing it.