How to Close a Business in Arkansas
Every state in the U.S. allows for the creation and dissolution of legal business entities. Before your Arkansas business can formally close, it must meet the state's dissolution requirements that apply to its entity classification. Once your business complies with these requirements, file a form titled "Articles of Dissolution" with the Arkansas secretary of state's office.
Corporation, partnership and limited liability company (LLC) are only a few common classifications available to Arkansas businesses. Each classification is bound by its own set of requirements and forms administered by Arkansas' state government.
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Instructions
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Download a printable copy of the dissolution form from the secretary of state's website. On the site's home page, select the link labeled "Business Entity Service Fees, Forms and Procedures" from the column on the left. Scroll down the page and select the link titled "Articles of Dissolution" or "Statement of Dissolution" under the entity classification that matches your business.
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Enter the required information on the articles of dissolution. If your entity is a corporation, list the results of the shareholders' vote for and against closing the business. If you are filing to close an LLC, list the reasons for the company's dissolution on the articles.
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Mail the form and filing fee to the Arkansas secretary of state's office at the address listed on the articles of dissolution. The articles of dissolution filing fee is $50 for a corporation or LLC and $15 for partnerships. You may pay the fee in cash or by electronic bank transfer.
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Inform your company's current creditors of the planned dissolution. Creditors must submit a claim against your business within three to four months or forfeit the right to pursue unpaid debts.
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Repay your company's remaining creditors. If you cannot meet a financial obligation, meet with the creditor or their representative to discuss an alternate means of reimbursement. Your business cannot dissolve until it meets all of its financial and legal obligations.
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Distribute all of the company's remaining assets to its owners. For a corporation, each shareholder is entitled to a percentage of the assets in proportion to his interests in the business. The owners of an LLC or partnership divide assets based on the stipulations of the company's operating/partnership agreement adopted upon its formation.
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