Foreign qualification is the process by which a business entity that was originally formed in another state seeks permission to operate in Arkansas. This involves registering with the Secretary of State in Arkansas and complying with the state's laws and regulations to ensure legal authorization for conducting business activities within the state.
There are 2 different ways to foreign qualify in Arkansas depending on your legal entity type and tax classification. Follow the guide below to help you register with the Secretary of State in Arkansas or use Mosey to do it.
Use Mosey to register with the Secretary of State in Arkansas.
Avoid the hassle of doing it yourself and use Mosey to automate foreign qualification, annual reports, and registered agent service.
Arkansas Foreign Registration for LLC
A foreign limited liability company must file a Certificate of Authority to Transact Business in Arkansas before it transacts business in the state. In lieu of defining what constitutes "doing business," the Office of the Secretary of State does provide a list of activities that are exceptions to the registration requirement.
Obtain Certificate of Existence
Obtain a Certificate of Existence from your home state issued within 30 days. It can be submitted online with the Secretary of State.
Establish a Registered Agent
Employers must have a registered agent in order for your Certificate of Authority filing to be approved. Your resident agent must have an Arkansas street address. It can be any Arkansas resident or a corporation qualified to do business in Arkansas.
File Application for Certificate of Authority
Submit your Application for Certificate of Authority to the Arkansas Secretary of State by selecting "App. for Certificate of Registration of For. LLC - FL-01" and then selecting "Start Form."
Arkansas Foreign Registration for C Corporation
A foreign corporation must file a Certificate of Authority to Transact Business in Arkansas before it transacts business in the state. In lieu of defining what constitutes "doing business," the Office of the Secretary of State does provide a list of activities that are exceptions to the registration requirement.
Obtain Certificate of Existence
Arkansas requires a Certificate of Existence from your home state issued within 30 days. It can be submitted online with the Secretary of State.
Establish a Registered Agent
Employers must have a registered agent in order for your Certificate of Authority filing to be approved. Your resident agent must have an Arkansas street address. It can be any Arkansas resident or a corporation qualified to do business in Arkansas.
File Foreign Corporation Application for Certificate of Authority
Submit your Application for Certificate of Authority to the Arkansas Secretary of State.
What else do I need to know?
Once you are registered with the Secretary of State, you may have additional requirements to maintain your "good standing" in the state. Failing to do so can result in fines, back taxes, and forfeiting certain priveleges within the state.
Maintaining a Registered Agent
Most states require that you have a registered agent that can receive important mail from the Secretary of State should they need to contact you. There are many commercial options available or you can use Mosey to be your registered agent and keep your information private in Arkansas.
Annual Reports and Taxes
In addition to maintaining a registered agent, most states require you to file a report annually. Registration can also trigger state taxes such as a franchise tax or income tax. You can use Mosey to identify these additional requirements to maintain good standing in Arkansas.
