If you’re planning to start a business in Arkansas, you need to prepare physically, mentally and emotionally, because it’s going to be one hell of a ride! Starting a business can be time-consuming and challenging, so extending your patience is very important.
One of the many responsibilities that you need to complete successfully is incorporating your Arkansas small business. Incorporation is an important process that you need to go through so you can fully protect you and your business from any liabilities.
After we’ve discussed incorporation and why it’s important, I’m going to introduce you to the top 3 resources for incorporating a business in Arkansas.
Without further delay, let’s start by discussing the 5 reasons why the incorporation process is essential.
This is the most important reason why you need to incorporate in Arkansas or in any other state for that matter. Your top priority is to protect your Arkansas startup, but you should never forget to safeguard yourself as well.
Incorporating your business means that you are forming a separate entity – one that is independent from you, as the business owner. A separate entity is given its own different rights and conducts transactions on its own, therefore, when legal or financial issues arise, you will not be held liable.
Creditors will not be able to lay a finger on your personal assets because you are duly protected under the law and you cannot be directly charged for anything.
One of the many things that you want to prevent when starting a multi-owned Arkansas business is avoiding conflicts among your co-founders and business partners. Misunderstandings can escalate fast, and before you know it, your business is falling apart.
These things can be avoided if you incorporate your Arkansas startup. When arguments about division of equity arises, you’ll be able to address them properly because you can issue stocks where this equity is split fairly among founders.
You will also have a legal document that will state how equity will be divided so major confusions are avoided and you’ll be able to conduct and continue your business with harmony.
By now, you already know how important capital is – everything starts with the right funding and if you’re still trying to raise some for your business, the best move is to incorporate.
To be able to receive investments, you need to set-up an entity, something that you can achieve only if you incorporate. Capitalists and investors need companies that can issue stocks before they decide to shell out some money for investment.
Also, when you are incorporated, your business automatically creates a credit trail by itself and you will be able to establish credit eventually.
Consumers want to deal with a legitimate company, fully and legally recognized by the state of Arkansas to conduct business – a company that they can completely trust and deliver quality and safe products/services. You can only do this if you incorporate in Arkansas.
Having an LLC, Inc. and even Co. after your business name can do great wonders and influence the buying perspective of customers. These very simple letters mean so much, they are synonymous with credibility. Once you are able to complete the incorporation process, you can use these to your advantage.
Tax rates are definitely much lower than individual tax rates, thus, it’s best that you incorporate your business so you can take advantage of tax benefits. You will be able to avail of tax deductions for both your business and your employees.
Tax deductions on operational costs where you can get big savings include employee salary, benefits, medical and others.
These are just some reasons why incorporating your business is essential, you can find out more if you try to do your own research or consult your attorney.
Incorporating a business in Arkansas is definitely not fun, you may have to do your own research and study for you to understand the entire process. Regardless, if you want to start an LLC or Corporation, numerous guides are available to help you with every step.
If you can’t take time to do it yourself, and risk preparing and filing the wrong documents, you have other options so to make everything easier. I suggest that you find an ideal online incorporation service, one that will best fit your business.
You’re probably familiar with LegalZoom, but there are many more options available:
IncFile is best known for its affordable pricing and has helped over 50,000 entrepreneurs. It is also known for offering the best and most comprehensive services. With features such as a Registered Agent Service for up to 1 year, one-on-one business consultations and a one day preparation and filing, IncFile is the online incorporation service to beat!
Find out more about IncFile, read the review now!
CorpNet is another excellent online incorporation service that offers services which include free business consultations, free trademark search and free business name search. Everything’s free right? There’s even more, you can get other awesome features for a fair price of $79!
To learn more about CorpNet, read the review for further help.
BizFilings is a great incorporation provider that you shouldn’t miss! It’s a little pricier than IncFile and CorpNet but it’s simply because BizFilings has all the right tools to make the incorporation process faster.
Want to find out more about BizFilings? Read the review for more info!
There are features available in some online incorporation services that are not present in others, for instance, IncFile has an order tracking tool while CorpNet lacks that feature. CorpNet on the other hand, offers free business name consultations and free trademark search while BizFilings doesn’t.
But if you ask me, I’d definitely say that IncFile is the best among the three – it’s the most reliable and affordable incorporation service in the market.
The best decision that you can ever make is incorporating your business. Believe me, I’ve done this and it’s been the wisest decision that I’ve made; now, I’m fully reaping the benefits of this process. From legal protection to tax benefits, incorporating in Arkansas should be something that you do.
However, a question remains, should you or should you not use an online incorporation service? The decision is all yours, I’ll leave that up for you to answer. Good luck!