What is a Foreign LLC in Arkansas – Definition and Filing

If you have an LLC in Arkansas and want to expand your business beyond Arkansas, you must form a foreign LLC. Any business, especially a limited liability company, located in other states, starts its operation in Arkansas, must file a foreign LLC in Arkansas. To do so, every LLC needs to file additional filing documents, along with tax and relevant documents with the Arkansas government.

In this article, you’ll be reading about how to start a foreign LLC in Arkansas. Along with that, the page guides you through the steps involved in managing and maintaining a foreign LLC in Arkansas after you form it.

Forming a Foreign LLC in Arkansas

A foreign LLC does not need to be a company from another country but a business formed under the laws of another state. If you register your LLC in one state and operate your business in Arkansas, you probably need to register your LLC as a foreign entity here. Imagine, if your family owns a sushi restaurant in Alabama and you want to expand the chain somewhere in Texas, you must establish your restaurant in Texas as a foreign entity.

Anyone who has an active and in good standing LLC anywhere (except for Arkansas) and wants to expand their operations in Arkansas can file their LLC as a foreign entity. To start a foreign LLC in Arkansas, you need to register it with the Arkansas Secretary of State. Every state has a different rule for establishing a foreign LLC. Here are the steps to follow in Arkansas for registering a foreign LLC.

Note: These are generic steps to file a foreign LLC in Arkansas. Make sure to check with the State Secretary of State, before you start filing your business. – LLCBuddy Team

Step 1: Get the Certificate of Good Standing From Home State

Before you proceed to register your LLC in Arkansas as a foreign entity, you must get the Certificate of Good Standing issued from your home state SOS. This is an important document to register an LLC in a foreign state.

If your LLC is originally registered in Arkansas, then you must obtain the Certificate of Good Standing from Arkansas Secretary of State. If your LLC is in other states, the name of the same document might be different. Every LLC, registered in any state other than Arkansas must get this document to register a foreign LLC in Arkansas.

Filing Certificate of Good Standing: To request a Certificate of Good Standing in Arkansas, you must send a request. It costs $25 to get the certificate. You can download the Certificate of Good Standing from Arkansas SOS within 2 weeks from the date of purchase.

Step 2: Choose Arkansas Foreign LLC Name

Obtain a name reservation certificate and submit it with your foreign qualification requirements to the Arkansas Secretary of State. Your LLC’s legal name outside of Arkansas will be listed on the application, along with the name it will use in Arkansas. Take note of the requirements for naming your LLC.

You can use the same name as your domestic LLC name, however, that name should be available in Arkansas to use. Check name availability at Arkansas’s business entity names and reserve your LLC name. There are a bunch of LLC naming guidelines in Arkansas when it comes to forming a foreign LLC. Check the guidelines before you name your business.

Step 3: Select Arkansas Foreign LLC Registered Agent

A registered agent is a person responsible for receiving all official and legal documents on behalf of your company, whether it is located domestically or in a foreign state. For a foreign LLC in Arkansas, you must have a registered agent from Arkansas only. No matter where your domestic LLC is located, you must hire a registered agent from Arkansas for your foreign LLC.

You’ll need a registered agent to form a foreign LLC in Arkansas and take note that the Arkansas Registered Agent must have a local address. Here are the best LLC services on our list that will provide you with registered agents to ease your worries:

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Step 4: File Application for Registration for Arkansas Foreign LLC

The most important step is to send the application for registration with Arkansas SOS. Download the PDF form from the Arkansas Secretary of State website or file it online (whichever method is available). The form must be filled out with the following details:

LLC’s full legal name.
A fictitious name or a DBA (only if your LLC’s legal name is not available); Attach a statement of adoption of the fictitious name signed by all LLC members.
- DBA filing method in Arkansas: three methods, online, by mail, and in person filing.
- Online: For online filing check the https://www.ark.org/sos/corpfilings/index.php for online forms.
- Offline: Check Arkansas Secretary of State website for the Form DN-18. Download the form, fill it up and send it to the Arkansas Secretary of State, 1401 W. Capital Ave., Suite 250, Little Rock, AR 72201
- DBA filing fee in Arkansas: $22.50 for filing online, $25 for filing by mail or in-person
LLC’s principal office and mailing addresses
LLC formation state and date.
Registered agent’s name and address in Arkansas.
Date when your LLC will start operations in Arkansas.
Credit card information is on the last page of the form for the application fee.

Online Filing

If you want to file your LLC as a foreign entity in Arkansas online, you must get the Online Form available. The online form is available at the following link and on the Arkansas Secretary of State’s official website. Before you start filling up the form, make sure the certificate of Existence is ready and sent to the SOS via email or fax. In case, it is not sent before, you must upload it with the online foreign LLC registration form along with the registration fee.

Offline Filling

If you’re filing a foreign LLC in Arkansas via offline mode, then you must download the Form FL-01 (pdf) from the Arkansas Secretary of State’s website. The form must be filled with the correct information about the company and registered agent. You must type it or print it and send it by mail to the address: Arkansas Secretary of State, 1401 W. Capital Ave., Suite 250, Little Rock, AR 72201.

Foreign LLC Registration Fee in Arkansas: The fee to be paid for filing a foreign LLC in Arkansas online is $270. If you’re filing it offline that is for the paper filing the fee will be $300. The fee will be received by the SOS only if paid using a credit/debit card.

The LLC cost in Arkansas, even for foreign LLCs will differ between online filing and by mail. Also, read about what’s the major difference between Arkansas’s domestic and foreign LLCs.

Step 5: Determine How Your Arkansas Foreign LLC is taxed

Foreign LLCs are also subjected to the Arkansas Business Privilege Tax and must file LLC annual reports each year. If you have a single-member foreign LLC then it will be considered as a ‘disregarded LLC’ by IRS. That means the LLC will not be regarded as a company but it will be taxed as an individual (the owner). If you already have an LLC in the home state, you must have obtained the EIN as well. You don’t need to obtain the EIN in Arkansas for a foreign LLC separately as it is issued from the IRS.

For other types of LLCs (member-managed or manager-managed LLCs), it will be a ‘pass-through taxation‘ where the LLCs don’t get taxed separately, instead, the members and managers are taxed based on their personal income. So, foreign LLCs are taxed as same as domestic LLCs in Arkansas. However, it is recommended to check with the Arkansas Secretary of State for state-wise taxes.

Note that forming a foreign LLC would be good for your business as you can legally operate in a different state thus reaching a larger market and opening more opportunities for higher profit.

Filing Arkansas Foreign LLC Online – Quick Recap

Get the Certificate of Good Standing from your home state where your LLC is originally registered
Check if the name of your LLC is available in Arkansas to use for your foreign LLC. If not, file DBA name with Arkansas SOS.
Get a registered agent in Arkansas to represent your foreign LLC in Arkansas. Recommended, professional help instead of being your own registered agent.
File the Application of Foreign LLC with the Arkansas Secretary of State following the mentioned method(s) above.
Make the processing fee.

BOI Reporting

According to the Corporate Transparency Act, every LLC (or business) has to send a BOI reporting to the Financial Crimes Enforcement Network (FinCEN). Once you establish an LLC and if it is enlisted under the list of reporting companies, you must file your BOI report in Arkansas with the FinCEN.

After Forming Arkansas Foreign LLC

Here are added things you need to accomplish after forming your Arkansas Foreign LLC

Obtain Business Licenses. Find the business licenses you’ll need using the Business License Search. You can contact the license office at Arkansas Secretary of State.
File LLC annual reports and Business Privilege Tax. You must file an Annual Report before the stipulated time frame after forming your LLC in Arkansas. Here’s everything about Arkansas LLC Annual Reports.
Pay State Taxes like sales tax; you’ll need an EIN for your LLC.

FAQs

What is a foreign LLC?

A foreign LLC is a limited liability company that was formed in a state other than Arkansas.

Can a foreign LLC do business in Arkansas?

Yes, a foreign LLC can conduct business in Arkansas by obtaining a Certificate of Authority.

How do I apply for a Certificate of Authority in Arkansas?

To apply for a Certificate of Authority in Arkansas, you need to file an Application for Registration/qualification of Foreign Limited Liability Company with the Secretary of State.

What are the filing fees for a foreign LLC in Arkansas?

The filing fee for a foreign LLC in Arkansas is $300.

Do I need a registered agent for my foreign LLC in Arkansas?

Yes, a foreign LLC in Arkansas must have a registered agent with a physical address in the state.

Can I use a PO Box as the business address for my foreign LLC in Arkansas?

No, a PO Box cannot be used as the business address for a foreign LLC in Arkansas.

How long does it take to get a Certificate of Authority for a foreign LLC in Arkansas?

The processing time for a Certificate of Authority in Arkansas is typically 7-10 business days.

Do I need to file annual reports for my foreign LLC in Arkansas?

Yes, foreign LLCs in Arkansas are required to file an annual report each year.

What information is required on the annual report for a foreign LLC in Arkansas?

The annual report for a foreign LLC in Arkansas typically requires information about the company’s name, address, and members.

How much does it cost to file an annual report for a foreign LLC in Arkansas?

The filing fee for an annual report for a foreign LLC in Arkansas is $150.

Can I change the name of my foreign LLC in Arkansas?

Yes, you can change the name of your foreign LLC in Arkansas by filing a Name Reservation/Name Change Amendment.

What is a Certificate of Good Standing and do I need one for my foreign LLC in Arkansas?

A Certificate of Good Standing is a document that certifies that your foreign LLC is in compliance with all state requirements and yes, you may need one for various transactions or filings in Arkansas.

How long is a Certificate of Good Standing valid for a foreign LLC in Arkansas?

A Certificate of Good Standing is typically valid for 30-60 days for a foreign LLC in Arkansas.

Can I convert my foreign LLC to a domestic LLC in Arkansas?

Yes, it is possible to convert a foreign LLC to a domestic LLC in Arkansas by filing the necessary paperwork with the state.

What are the tax implications for a foreign LLC doing business in Arkansas?

Foreign LLCs doing business in Arkansas may be subject to state and local taxes, so it is recommended to consult with a tax professional.

Is there a publication requirement for foreign LLCs in Arkansas?

There is no publication requirement for foreign LLCs in Arkansas.

Can a foreign LLC own real estate in Arkansas?

Yes, a foreign LLC can own real estate in Arkansas.

Can I dissolve my foreign LLC in Arkansas without any liabilities?

Yes, you can dissolve your foreign LLC in Arkansas as long as all outstanding liabilities are settled.

Are there any restrictions on the name I can choose for my foreign LLC in Arkansas?

The name of a foreign LLC in Arkansas must be distinguishable from other registered entities in the state.

Can I apply for a Certificate of Authority online for my foreign LLC in Arkansas?

Yes, you can file your application for a Certificate of Authority online through the Secretary of State’s website in Arkansas.

Do foreign LLCs need to appoint officers or directors in Arkansas?

Foreign LLCs are not required to appoint officers or directors in Arkansas.

Can I use a DBA (Doing Business As) name for my foreign LLC in Arkansas?

Yes, you can use a DBA name for your foreign LLC in Arkansas as long as it is registered with the state.

Are foreign LLCs required to hold annual meetings in Arkansas?

Foreign LLCs are not required to hold annual meetings in Arkansas.

What is the difference between a foreign LLC and a domestic LLC in Arkansas?

A foreign LLC is formed outside of Arkansas, while a domestic LLC is formed within the state.

Do I need to get a business license for my foreign LLC in Arkansas?

Depending on the nature of your business, you may need to obtain additional licenses or permits at the local level in Arkansas.

Can I operate multiple businesses under a single foreign LLC in Arkansas?

Yes, you can operate multiple businesses under a single foreign LLC in Arkansas as long as they are related or similar in nature.

Do foreign LLCs need to appoint a manager in Arkansas?

Foreign LLCs are not required to appoint a manager in Arkansas.

Is there a requirement to maintain business records for a foreign LLC in Arkansas?

Yes, foreign LLCs in Arkansas are required to maintain accurate business records and make them available for inspection upon request.

What happens if I fail to comply with the foreign LLC requirements in Arkansas?

Failure to comply with the foreign LLC requirements in Arkansas may result in penalties, fines, or even the revocation of your Certificate of Authority to do business in the state.

What is a foreign LLC in Arkansas?

A foreign LLC in Arkansas is a limited liability company that was formed outside of the state of Arkansas but wishes to transact business in Arkansas.

In Conclusion

Having a foreign LLC in Arkansas is nothing but expanding your business legally beyond the boundary of your domestic or home state. Starting a foreign LLC in Arkansas does not require a lot of documentation or tasks. However, it is always good to seek help from a professional when it comes to running your business. From getting the Certificate of Good Standing to hiring a registered agent in Arkansas, a professional or attorney can always be a perfect help. ZenBusiness is one of the most accurate and user-friendly services that offer a bunch of LLC formation services. They offer LLC formation for $0 (excluding the state formation fee).

The cost of registering a foreign LLC in Arkansas can vary depending on a range of factors. While the initial registration fees and ongoing expenses can be a significant investment, many companies find that the benefits of establishing a presence in the state outweigh the costs. By carefully considering the expenses involved and budgeting accordingly, companies can ensure that their foreign LLC in Arkansas is a success.