How to Dissolve an LLC in Arkansas – LLC Cancellation 2024 (original) (raw)

dissolve an LLC

Dissolving a business often involves complex procedures. However, for a limited liability company in Arkansas, dissolving it takes a handful of paperwork. When an LLC is formed in Arkansas, the owner(s) draft the operating agreement. If the owner(s) decide to dissolve the business, the dissolution takes place following the articles mentioned in the operating agreement.

In this article, LLCBuddy editors shared the ins and outs of dissolving an LLC in Arkansas. LLCs must file the Articles of Dissolution with the Arkansas Secretary of State like the formation certificate was filed at the time of forming an LLC in Arkansas. It takes a few days to process and a handful of fees to be paid to the SOS. Many people hire a professional service to do the paperwork to process it hassle-free.

How to Dissolve an LLC in Arkansas

At the time of forming an LLC, an operating agreement draft must be written. Generally, the process of dissolution takes place following the operating agreement (read: Arkansas LLC operating agreement). Before the dissolution process, there are a few things to consider in the LLC.

First, make sure all the members of the LLC agree to dissolve the business. Once all the members are ready, their consent should be recorded via voting. After casting their vote in favor of the dissolution, the legal process must be started.

Dissolution of Arkansas LLC requires three broad procedural steps. Having a Arkansas LLC Operating Agreement, closing all the tax accounts, and finally submitting the Articles of Dissolution form to the Arkansas Secretary of State.

Step 1: Follow the LLC Operating Agreement in Arkansas

operating agreement

When you have started an LLC as a business entity, then there is an operating agreement that is formed. There are complete details of how the company will function and grow in that operating agreement, which acts as a comprehensive guide. There is also a dissolution process, which is added to your agreement. The common dissolution steps that almost every LLC follows are:-

First of all, the dissolution vote will take place among the LLC members in the dissolution meeting. If the majority is with the YES, then the process goes into legal proceedings.

All the dissolution votes will be noted down and recorded with the minutes of the meeting or a consent form.
After that, a formal date for dissolving the LLC will be decided.
The next step is counting the LLC assets and dividing them among the stakeholders and members accordingly.
Finally, the creditors of the business are notified, and the debts of the business are settled.

This is a general process. However, it is strongly recommended to seek professional help to avoid any complications when it comes to terminating an LLC in Arkansas.

Get a Professional Agent Service

When it comes to a limited liability company dissolution, it is important to get professional help. Arkansas registered agent will guide you with everything you need to close your limited liability company. While choosing a registered agent make sure they have a physical street address in the state. A professional service provider helps you to file the Article of Dissolution and close your various tax accounts without any hassle. Below are the best LLC services in Arkansas that we strongly recommend for you.

LLC Service	Our Rating & Pricing	Top Features	Learn More
#1 TOP PICK	4.5/5 $0 + State Fees	100% accuracy guarantee Worry-free service Great customer support	Learn More
	4/5 $0 + State Fees	Free LLC Formation Affordable Add-on services Other business solutions	Learn More

Step 2: Close All Tax Accounts

Every action that an official business takes is legally bound to some minimum business taxes. For that, various accounts, especially business entity tax accounts, are maintained by the state government with the help of various departments. You should consider all the taxes that you have paid for your LLC’s duration and make a list of them.

You must contact all government entities and clear the amount of outstanding taxes due by the date you have decided to dissolve. All the taxes must be paid in advance so that you don’t face any issues in the process of shutting down your LLC.

Some of the common taxes that limited liability companies have to pay are:

Unemployment insurance tax
Employee withholding tax if your LLC has employees.
If your LLC is engaged in selling taxable goods then they are liable to pay the sales and use tax.

Most of these taxes are normally filed, but some departments require official paperwork, without which it is impossible for the business to close their accounts. Apart from business taxes, federal taxes, personal income taxes, and franchise taxes are to be considered. For the franchise taxes, a franchise tax form is required. That is why the LLC owner should go through the sales tax guide and hire an accounting service.

Tax clearance

While dissolving the Arkansas LLC, the owner is not required to obtain a tax clearance certificate. However, if you have filed federal taxes, then you must go through the final return option on your IRS form.

The IRS form for the LLCs that are classified as partnerships is Form 1065, and those LLCs who have registered themselves as corporate should check IRS Form 1120.

BOI Reporting

If you’re going to dissolve your LLC this year, make sure to update your BOI reporting. From January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) implied a rule to all businesses, including LLCs in Arkansas to file the BOI Report. The Beneficial Ownership Information (BOI) in Arkansas is a report that states about in and out of the company. This report must be up-to-date and submitted to the FinCEN before you proceed to the dissolution.

Step 3: File Articles of Dissolution

There is a list of dissolution documents that you, as an LLC owner, have to file. Once these articles are filed, the legal existence of the LLC will be over. Like a Arkansas Certificate of Organization, one has to file Arkansas LLC Certificate of Organization. The dissolution procedure and filing the articles of dissolution form is very easy and is discussed below.

articles of organization

First of all, the LLC owner(s) has to file the Article of Dissolution. There are multiple methods of filing available, such as filing by mail, in-person drop, or/and online filing.
You can follow the filing instructions on the official portal so that the steps for dissolution will be easier to complete.
For offline filing, LLCs must download the form and submit it to the Arkansas Secretary of State physical office along with the state filing fee.
If you want to dissolve Arkansas Foreign LLC then look for the Foreign LLC Dissolution process.
You must fill in all the important and legal information in the form, so you should be extra careful.
After filling in all the important information, you must choose the mode of payment you want to use to pay the LLC dissolution filing fees.
After filling in every detail, one should submit the form through an official mail address and make a payment.

Filing	Forms and Details
Online Applications	Not Applicable
Offline Applications	Articles of Dissolution
SOS Contact (if offline application is available)	Arkansas Secretary of State, 1401 W. Capital Ave., Suite 250, Little Rock, AR 72201
Filing Time	Not applicable as there is no process of dissolution.
Filing Fee	N/A

The LLC you own is dissolved, and you are free from all the liabilities linked with the LLC and its taxes. A copy of both original articles and recorded articles should be submitted in front of the probate judge. Now it’s his call whether he accepts your expedited dissolutions or not.

Points to Be Noted When Dissolving an LLC in Arkansas

Apart from these three steps, no major dissolution rules are there in Arkansas. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.

Winding Up

Some purposes of LLC require some attention even after dissolution, known as winding up. The task of winding up includes.

For a certain period, the property of a business requires preservation.
If there is any civil case against the LLC, then the owner needs to finish them.
Settle all the existing disputes of LLC.
Transfer all the property of the LLC to the names of partners.
Release all the liabilities that the LLC owes to others.
Rightful distribution of all the assets among members, according to their percentage of partnerships.

Cost of Dissolving LLC

LLC costs in Arkansas include the formation as well as dissolution fees. To dissolve an LLC in Arkansas, LLCs have to file an Article of Dissolution. The filing fee is N/A. The details are mentioned in the articles of dissolution filing form. Following are the ways to pay for the dissolution,

You can select a payment pick-up option.
There is an option for direct account transfer through your prepaid accounts.
LLC owners can also use their Credit cards, providing their complete details and types. Along with that, an original signature is required to authorize the transaction the state will make.

After Dissolving Your LLC

After you dissolve an LLC in Arkansas, you can reinstate or revive the same within a given time. In Arkansas, the LLC name will be available up to the time till SOS dissolves the LLC completely. After this, the name will be available to other LLCs. Besides, you might revive or reinstate the LLC in Arkansas if that is available. According to the Arkansas SOS, you can revive your LLC within 7 years.

Reasons Behind Dissolving an LLC in Arkansas

People always think they can leave the company without any notice and there will be no issue. But if you have an LLC that you created with a legal obligation, it needs to be ended that way. Yes, if someone will dissolve an LLC in Arkansas, they will have to do it while taking care of the government. For dissolving the company, there is always a reason. The reason can be voluntary or involuntary too. Let’s get to know about the involuntary reasons,

If the company was caught doing illegal business.
If the company’s member died due to some reason or went bankrupt.
The dissolution will be mandatory if the assets of the business are used unwisely.
If the time being of the company was already determined in the will, then the company will go into dissolution at that time.

Top Businesses in Arkansas

With the population of 3,040,207, Arkansas is one of the favorable places to start an LLC. According to several reports, starting an LLC for Food Processing can be profitable as various places in the state showed steady growth in this business over the past few years. On the other side, based on the city or region you’re going to start your LLC, you can decide the type of business to start. Following are the top 5 businesses you can start in Arkansas.

Food Processing
Poultry Farming
Printing Press
Daycare Provider
Hair Salon

Arkansas LLC Dissolution Review – A Quick Recap

Here’s a recap of the steps you must follow when dissolving your Arkansas LLC. Click on the steps in this list if you want to read the full details.

Follow Your Arkansas LLC Operating Agreement: Remember that when you started, you created an operating agreement. Use this agreement as a guide in proceeding with the dissolution of your LLC.
Close All Tax Accounts: Make sure you close all your tax accounts to avoid incurring further costs.
File Certificate of Organization: File the article of dissolution to make it known to the state where your LLC operates that you are indeed no longer in business.

FAQs

How do I dissolve an LLC in Arkansas?

To dissolve an LLC in Arkansas, you must file Articles of Dissolution with the Arkansas Secretary of State.

What is the filing fee for dissolving an LLC in Arkansas?

The filing fee for dissolving an LLC in Arkansas is $45.

Do I need to notify the Arkansas Department of Finance and Administration when dissolving my LLC?

Yes, you must notify the Arkansas Department of Finance and Administration when dissolving your LLC.

What form do I need to use to dissolve my LLC in Arkansas?

You need to file the Articles of Dissolution form with the Arkansas Secretary of State.

Is there a specific timeframe for the dissolution process in Arkansas?

Once you file the Articles of Dissolution, your LLC will be dissolved immediately.

Can I reinstate a dissolved LLC in Arkansas?

Yes, you can reinstate a dissolved LLC in Arkansas by following the necessary procedures.

Are there any annual reporting requirements for a dissolved LLC in Arkansas?

No, there are no annual reporting requirements for a dissolved LLC in Arkansas.

Does dissolving an LLC in Arkansas affect my personal liability?

Dissolving an LLC in Arkansas does not necessarily protect you from personal liability for past debts or obligations.

Can I dissolve my LLC in Arkansas if it is still financially active?

Yes, you can dissolve your LLC in Arkansas even if it is still financially active.

Do I need to notify creditors and other interested parties when dissolving my LLC in Arkansas?

Yes, you should notify creditors and other interested parties when dissolving your LLC in Arkansas.

How long does it take to dissolve an LLC in Arkansas?

The dissolution process typically takes a few weeks in Arkansas.

Can I dissolve my LLC in Arkansas online?

Yes, you can file for dissolution of an LLC in Arkansas online through the Secretary of State’s website.

What happens to the assets of a dissolved LLC in Arkansas?

After paying off any debts and obligations, the remaining assets of a dissolved LLC in Arkansas will be distributed to the members.

Can I dissolve my LLC in Arkansas if it is involved in a lawsuit?

Yes, you can dissolve your LLC in Arkansas even if it is involved in a lawsuit.

Do I need to cancel my LLC’s licenses and permits when dissolving it in Arkansas?

Yes, you should cancel any licenses and permits associated with your LLC when dissolving it in Arkansas.

Can I dissolve my LLC in Arkansas if it has outstanding taxes?

You must settle any outstanding taxes before dissolving your LLC in Arkansas.

What documents do I need to provide when dissolving my LLC in Arkansas?

You will need to provide the Articles of Dissolution form and any other required documentation.

Can I dissolve my LLC in Arkansas if it has unfulfilled contracts?

Yes, you can dissolve your LLC in Arkansas even if it has unfulfilled contracts, but you may still be responsible for fulfilling those contracts.

What if I don’t file Articles of Dissolution for my LLC in Arkansas?

If you fail to file Articles of Dissolution for your LLC in Arkansas, you may still be responsible for taxes and annual reports.

Can I dissolve my LLC in Arkansas if it is in good standing?

Yes, you can dissolve your LLC in Arkansas even if it is in good standing.

Will dissolving my LLC in Arkansas affect my ability to start a new business?

Dissolving your LLC in Arkansas will not necessarily affect your ability to start a new business.

Can I dissolve my LLC in Arkansas if it is facing bankruptcy?

Yes, you can dissolve your LLC in Arkansas even if it is facing bankruptcy.

Do I need to notify the Internal Revenue Service when dissolving my LLC in Arkansas?

Yes, you should notify the Internal Revenue Service when dissolving your LLC in Arkansas.

Can I dissolve my LLC in Arkansas if it has pending lawsuits?

Yes, you can dissolve your LLC in Arkansas even if it has pending lawsuits.

What are the consequences of not properly dissolving my LLC in Arkansas?

If you do not properly dissolve your LLC in Arkansas, you may still be liable for taxes and other obligations.

Can I dissolve my LLC in Arkansas if it is currently in operation?

Yes, you can dissolve your LLC in Arkansas even if it is currently in operation.

Will dissolving my LLC in Arkansas affect my personal credit?

Dissolving your LLC in Arkansas may not necessarily affect your personal credit.

Can I dissolve my LLC in Arkansas if it has employees?

Yes, you can dissolve your LLC in Arkansas even if it has employees, but you must follow proper procedures for their termination.

What is the deadline for filing Articles of Dissolution for an LLC in Arkansas?

There is no specific deadline for filing Articles of Dissolution for an LLC in Arkansas, but it is recommended to do so as soon as possible.

How do I dissolve my Arkansas LLC?

To dissolve an LLC in Arkansas, you must file the Articles of Dissolution with the Arkansas Secretary of State.

In Conclusion

Dissolving a business is not an easy task as a lot of homework is involved with the process. The official process might have only a few steps, however, before and after dissolving the LLC, there might be a lot of other tasks. In this case, it is highly recommended to get a professional service. If you are looking to file an LLC at $0, then ZenBusiness is your answer.

Limited liability companies reduce owners’ personal liability. Having an LLC is quite cost-effective. However, if it is required to close down the business, then the dissolution process should be done legally. This article shared the general steps. Let us know if you have any queries.