To dissolve an LLC in Arkansas, many steps simply must be followed. Otherwise not only will the law be broken, it will be detrimental to the business owners as well.
If you decide to stop running the LLC throughout your retirement, a new business, or any other reason, you’ll be granted protection over legal or financial disarray by following the steps that have been laid out.
Here’s a comprehensive guide on how to dissolve an LLC in Arkansas.
1. Voting On Whether To Dissolve The LLC
Voting in favor or against dissolving the LLC is the first step in this process. Head over to the operating agreement of the LLC to gauge the voting processes and how many votes are required to approve the dissolution. If no such operating agreement exists, default state laws will apply.
Furthermore, ensure that the decision to dissolve the LLC is properly documented in the meeting minutes to maintain a clear record. The purpose of this is to avoid disputes in the future.
2. Pay Obligations
You are to ensure all liabilities are settled before dissolving a limited liability Company be it immovable or movable, such as:
Paying Off Debts: Contractual obligations need to be wiped off with the creditors’ agreement. An agreement to pay is best tailored.
Closing Business Accounts: Vendor dues need to be settled and services contracts terminated or availed. Subscriptions, utilities, and (other) services need a service change request done.
Tax Finalization: Any state and federal taxes or returns that are due following up on payroll, sales, and income tax dues need to be filed. If requested, the Arkansas Department of Finance and Administration will issue a tax paper.
These obligations facilitate for the LLC rest being no longer exist after its disbandment that why it is very important to pay them off.
3. Submit The Articles Of Dissolution
An LLC that is more or less terminated means submitting the articles of dissolution to the secretary of state in Arkansas. The steps that follow help achieve this below:
Download the Form: The articles of dissolution are to be obtained from the Secretary of State Arkansas’ page.
Completing the Form: Kindly present the necessary information:
- The name of the LLC
- Dissolution date
- Dissolution reason (optional)
- Contact details
Submission of the form: The filled form can be submitted in person, online, and via mail. For Online, it is $50 & for Paper it is $45.
Mailing Address: Arkansas Secretary of State – Business and Commercial Services Division
1401 W Capitol Ave, Suite 250
Little Rock, AR 72201
For online submissions, go to the official website of the Arkansas Secretary of State. Once you fill out the form, the Secretary of State will get in touch with you to inform you about the dissolution process and how it has been completed.
4. Notify Stakeholders
As soon as the Articles of Dissolution are submitted, duly inform all concerned stakeholders of the dissolution of the LLC. They are:
- Vendors and suppliers
- Clients or customers
- Financial institutions
Cancel any business concerning the LLC like business permits or business registration. If there were employees, please inform the Arkansas Department of Workforce Services for compliance.
5. Share the Remaining Assets
Once all liabilities of the LLC have been paid, the assets of the company can be shared between the company members. The sharing of assets should be based on the operating agreement or law of the state of Arkansas in the absence of the agreement.
Retain all the information regarding the process of distribution of assets, appraisals, or other evaluations of company property management.
6. Keep the Records
Retention of reports concerning all documents about the dissolution of the LLC such as:
- Articles of dissolution
- Minutes of a meeting in which members approved the dissolution of the LLC.
- Tax clearance certificates
- Broad Form Liability Trusts Financial records about the distribution of assets.
- Correspondences with the LLC’s creditors or vendors.
All these documents may be required to settle later disputes which may arise after the dissolution has taken place. It is advisable to keep these records for at least seven years since they will be important during the audit and for legal purposes.
7. Cancel Your EIN
If your business has ceased to operate, and you no longer wish to use your Employer Identification Number (EIN), where applicable. Then the IRS should be informed by the letter which states the name of the company, its EIN, and the reason for cancellation.
- Send the letter to: the Internal Revenue Service
- Attn: EIN Operation
- Cincinnati, OH 45999
As a final step, you are suggested to submit a final tax return to the IRS and mark it as final. This guarantees the deletion of your business from the IRS’s active list of taxpayers.
How EasyFiling Can Help
Arkansas can be very time-consuming and hard when it comes to dissolving an LLC. But with EasyFiling, it becomes easy for you. When it comes to LLC formation and dissolution services, we provide everything from legal, paperwork to all other requirements so you do not have to worry about the next steps. Here’s how EasyFiling can assist:
Preparation of Documents: We write and submit Articles of Dissolution to the Secretary of State of Arkansas on your behalf.
Compliance Assurance: All unresolved matters including taxes and debts are settled before dissolution, and due diligence is done by our professionals.
Tax Clearance Assistance: Any required tax clearance certificates are obtained by us as a matter of courtesy.
Expert Guidance: Obtain the assistance of our qualified personnel and we will guide you through the process and answer all your inquiries.
When you use EasyFiling to dissolve your LLC in Arkansas, it is effective and smooth because it can save you time and cut out frills.
Book a free consultation today to dissolve an LLC in Arkansas.
Frequently Asked Questions (FAQs)
1. Is there a time frame for how long it will take me to dissolve my LLC in Arkansas?
LLCs can take a considerable amount of time to fully dissolve, ranging anywhere from a few weeks to a few months. Finalizing outstanding debts, filing all required documents, and completing additional necessary tasks would determine the actual timeframe of dissolution.
2. Is a tax clearance required for LLC dissolution?
Once again, the answer is no but much like always, it is recommended that all taxes and returns are settled before filing for dissolution to avoid problems in the future.
3. Am I allowed to dissolve my LLC online?
Absolutely! The Secretary of State in Arkansas allows online dissolutions through their website, making the process significantly more efficient and faster.
4. What do I do if I no longer want to run my LLC but don’t want to formally dissolve it?
While technically it is possible to keep an LLC operating without formal dissolution, it is not recommended as it can lead to financial and legal complications due to continuous state charges, taxes, and penalties.
5. EasyFiling, what assistance do you offer that will make the dissolution process easy for me?
With EasyFiling, you don’t have to worry about anything concerning the whole dissolution process, as we will help you with preparing the dissolution documents, filing them, assisting with clearing the tax, and ensuring compliance. EasyFiling is efficient in making your work easier by saving you a lot of time.
Nabin Adhikari
