An Arkansas certificate of good standing (AR) is a legal document that verifies that your limited liability company (LLC) or corporation was correctly formed and is in good standing with the state.
This Certificate of Good Standing Arkansas guide will explain how to get a certificate of good standing in Arkansas and the requirements to get a good standing certificate.
What is a Certificate of Good Standing?
The certificate- of good standing, aka “certificate of existence,” confirms that a company is up-to-date with its filings and has no legal issues preventing it from conducting business.
This state document verifies that you have legally formed your LLC or corporation and that your company is properly maintained.
Requirements for Getting an Arkansas Certificate of Good Standing
In Arkansas, the certificate of good standing is known as a certificate of compliance issued by the state of Arkansas. To qualify for an Arkansas certificate of compliance, make sure your corporation or LLC is up-to-date with the following state compliance requirements.
Obtain Business Licenses & Permits
Follow federal, state, and local licensing guidelines to operate your business in Arkansas in a state-compliant manner. Some examples include health permits, building permits, medical and other professional licenses, etc.
To find more about state licensing requirements, visit the State of Arkansas website.
Pay State Taxes
Different businesses are subjected to different taxes such as Arkansas Unemployment Insurance (UI) tax, sales tax, withholding tax, etc. Depending on your business activity, you must register for various forms of Arkansas state tax.
Note: Businesses in Arkansas must also pay a $150+ annual franchise tax.
Timely Submit Annual Reports
All Arkansas corporations and LLCs must file an annual report that summarizes their business’s finances over the past year.
The Arkansas Secretary of State requires your business to submit an annual report. There is no filing fee for the Arkansas LLC annual report but a minimum tax of $150 is due every year.
How Do I Get a Certificate of Good Standing in Arkansas?
Once your business is up-to-date with all filings and compliance requirements, you can order your certificate of Good Standing from the state authority.
The Arkansas certificate of compliance is requested from the Arkansas Secretary of State. To order your certificate of compliance online from the Arkansas Department of Revenue, click the following link.
The filing Cost for the Arkansas Certificate of Compliance is $25.
Why Do I Need a Certificate of Good Standing in Arkansas?
While you don’t necessarily need a certificate of compliance to run your LLC or corporation in Arkansas, there are several instances where you may need to get one. These include:
- Opening a business bank account
- Applying for a business loan or line of credit from a bank
- Purchasing business insurance
- Trying to lease commercial space
- Soliciting funds from potential investors
- You want to register your LLC or other business in another state as a foreign or out-of-state LLC
- You want to Transfer or domesticate your business to another state
- You’re selling your business, and the buyer wants proof that the company is in good legal standing
- You are contracting with another company
- You need to show compliance with government regulations in any other situation
FAQs on Arkansas Certificate of Good Standing
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