How to Move Your LLC to Arkansas
Q: I’m in the process of moving and will be relocating to Arkansas. What are the steps I need to take to make the transition?
Thank you to a client from Colorado for this great question! There are a few ways to move an LLC to Arkansas.
The most straightforward approach is Arkansas domestication. Domestication transfers your LLC from its previous jurisdiction to Arkansas, making it a domestic Arkansas LLC. However, the cost of domestication is a little steep: at least $300 to file.
Another option is dissolving your business in its previous jurisdiction and starting a new LLC in Arkansas. This alternative is cheaper—$50 for the Certificate of Organization plus a fee for dissolving your business in its home state—but you’ll have to completely reestablish your business.
How do I file for LLC domestication in Arkansas?
If you go searching for information on LLC domestication in Arkansas, you might end up a little confused about whether or not it’s possible. This is because Arkansas only recently updated its LLC laws to include domestication in 2021. The process is a little complex, so let’s go over it.
Step 1: Find out if your home jurisdiction allows for domestication to Arkansas.
You can domesticate your LLC in Arkansas as long as domestication is allowed by the jurisdiction you’re moving from (ACA § 4-38-1051).
Luckily for our client, Colorado permits domestication from Colorado to another jurisdiction (CRS 7-90-201). However, a customer wishing to domesticate a Hawaii LLC in Arkansas would not be able to do so because Hawaii’s laws do not allow for domestication to or from the state.
Review your state’s statutes or contact the agency in charge of business registrations in your state to find out if domestication to Arkansas is possible for your LLC.
Step 2: Obtain all necessary documents from your original jurisdiction
Arkansas has some unique requirements for LLC domestication in the state. When you file for Arkansas domestication, you’ll need to attach some documents from your original home jurisdiction to your application. These are:
- A certified copy of your LLC’s original or restated articles and all amendments. This copy must be dated within 60 days.
- A certificate from the Secretary of State or other agency in charge of business registration in your previous jurisdiction showing that domestication is allowed by your previous jurisdiction and that your LLC meets the requirements for domestication.
If you think meeting the second requirement sounds a little complicated, you’re right. It’s doubtful that your original jurisdiction will have a form available to request this very specific type of certificate. You’ll have to contact the Secretary of State or other agency in charge of business registration in your previous jurisdiction to find out the exact process for obtaining your certificate.
Step 3: Find out if your business name is available in Arkansas
Just like when you named your LLC in your original jurisdiction, you’ll need to follow all state guidelines for naming your LLC in Arkansas. Notably, your name will need to be unique in the state of Arkansas. If another business is already using your name, you’ll need to file to operate under a fictitious name.
To do business in Arkansas under a fictitious name, your LLC will have to adopt a resolution to use a fictitious name before you file for domestication, and you’ll need to provide a copy of this resolution when filing. You’ll also need to file a separate application to use a fictitious name in Arkansas.
You can find out if your LLC’s name is available in Arkansas using the state’s online business name search tool.
Step 4: Find an Arkansas registered agent
Arkansas law (ACA § 4-38-115) requires all Arkansas LLCs to have a registered agent who is physically located in the state. This means that if your current registered agent doesn’t have an office in Arkansas, you’ll need a new one. Many business find it convenient to hire a registered agent service when domesticating in a new state.
Step 5: File domestication paperwork in Arkansas
Once you’ve gathered all of the required documents from your previous jurisdiction, you’re ready to complete your Arkansas domestication application.
You’ll need to:
- Fill out a Limited Liability Company Certificate of Transfer of Domicile (Domestication) to Arkansas, which includes an LLC Franchise Tax form
- Attach your certified copy of your original or restated articles from your previous jurisdiction
- Attach your certificate showing that your LLC is authorized to domesticate to Arkansas
- Attach Certificate of Organization for a Limited Liability Company
If you will be operating under a fictitious name, you’ll also need to:
- Attach a copy of your LLC’s resolution adopting the use of a fictitious name
Finally, you’ll submit all of your paperwork (plus filing fees) to the Arkansas Sectary of State.
The filing fee for your Certificate of Transfer of Domicile to Arkansas is $300.
Step 6: Dissolve your LLC in your original home jurisdiction
After your domestication paperwork has been filed and approved by the Arkansas Secretary of State, you’ll need to dissolve your LLC in your previous jurisdiction. Once dissolved, your LLC will no longer exist as a business entity in your original jurisdiction. Your business is officially an Arkansas LLC!
How do I form a new domestic LLC in Arkansas?
If you’d prefer to start a new Arkansas LLC, here’s what you need to do.
Step 1: Dissolve your LLC in your original home jurisdiction
First, you’ll need to officially close your business in your original jurisdiction. You can do this by dissolving your LLC with the state. The process for dissolving your business varies by state, so to find out exactly what you’ll need to do, contact the Secretary of State or other agency in charge of business registration in your previous jurisdiction.
In Colorado, for example, you’ll need to file a Statement of Dissolution with the Secretary of State.
Note that everything associated with your old LLC, such as your EIN, cannot be used for your new Arkansas LLC. You’ll also have to liquidate all of your assets. In many ways, you’ll be starting over from scratch.
Step 2: Form a new Arkansas LLC
Now, you’ll follow the same basic procedures for starting a new LLC in Arkansas that you did to form your LLC in your previous jurisdiction.
You’ll need to:
- Name your LLC
- Appoint an Arkansas registered agent
- Write your operating agreement
- Get a new EIN
- File a Certificate of Organization for a Limited Liability Company with the Arkansas Secretary of State
The fee to file a Certificate of Organization is $50.
After your filing is accepted, you’ll own an Arkansas LLC! You’ll be able to rebuild your business in your new state of residence.
