In order to close a Limited Liability Company (LLC) in Arkansas, a number of procedures must be adhered to exactly. Despite the procedure’ potential for complexity, with the correct knowledge, it is quite manageable. This article will describe the procedures involved in terminating an LLC in Arkansas, address some pertinent inquiries, and offer some helpful advice to make the most of the experience.
When an LLC is registered in Arkansas, the Secretary of State (SOS) assigns it a special identifier known as the SOS filing number. In all official filings with the state, it is used to identify the LLC. Since it must appear in every document you submit to the state, the SOS filing number is crucial when closing an LLC in Arkansas.
Arkansas classifies LLCs as pass-through entities, meaning that its members are responsible for reporting the LLC’s gains and losses on their individual income tax returns. In Arkansas, LLCs do not pay state income tax, but they are still responsible for paying other taxes including sales tax, use tax, and property tax.
Arkansas also levies a state income tax, which ranges from 0.9% to 6.6%, in addition to the taxes already mentioned. Additionally, there is a 6.5% use tax and a 6.5% sales tax for items that are bought outside of Arkansas but are used or eaten there. Based on the property’s worth, different counties have different property tax rates.
Yes, the Arkansas Department of Finance and Administration requires all LLCs to file an annual tax return. By the fifteenth day of the fourth month after the conclusion of the LLC’s tax year, the tax return must be submitted. Penalties and interest costs may apply if the tax return is not submitted on time.
Meeting with the members is the first step.
Holding a meeting with the members to debate and vote on the decision to dissolve the LLC is the first stage in closing an LLC in Arkansas. The meeting’s minutes should be written down and retained for future use.
The LLC must submit Articles of Dissolution to the Arkansas Secretary of State following the meeting. The name of the LLC, the SOS filing number, and a declaration that the LLC has been dissolved must all be included in the Articles of Dissolution. The cost to file the Articles of Dissolution is $50.
Step 3: Submit Your Final Tax Returns With the Department of Finance and Administration in Arkansas, the LLC must submit its final tax reports. All income and deductions up to the date of dissolution must be included in the final tax filings. Any unpaid taxes to the state must also be paid by the LLC.
Step 4: Resign from Licenses and Permits All licenses and permissions that the LLC has with the state of Arkansas must be revoked. This includes any business licenses, sales tax licenses, or other licenses obtained while the LLC was in operation.
Although closing an LLC in Arkansas can be a little challenging, if you follow the above instructions, you should be able to do it effectively. Keep thorough records of every action you take, such as meeting minutes, tax returns, and any other paperwork you submit to the state. You may easily close your LLC in Arkansas if you have the correct knowledge and a little bit of patience.