Starting a business in Arkansas is definitely not easy and you deserve all the recognition for completing the most important step in ensuring the future of your business – the Incorporation process.
During the course of incorporating in Arkansas, I’m sure that you had plenty of questions like how to start a business in Arkansas and the main question, how to incorporate in Arkansas. Now that you’ve completely incorporated, you’ll even have more questions on what to do next!
Yes, you read it right! You still have so much to do, so much to accomplish before you can fully conduct business. Before you get all confused and frustrated, we’ve made a to-do list especially for you. Read all the points carefully and take note of the procedures in obtaining such requirements.
The first step to become a legal entity is to incorporate, however, this is not enough to fully operate your Arkansas small business. You need to obtain necessary licenses and permits before you’ll be given full authority to conduct any business activity.
There are numerous permits and licenses which may be applicable to different types of businesses. To make sure what is required of your startup, visit your local county or city hall for the specifics.
If you fail to comply, you may be given sanctions and fines, in worst cases, you may be asked to close your business.
An Employer Identification Number (EIN) is equivalent to the Social Security Number for individuals. You need to obtain an EIN for your business since it’s now considered a separate entity, independent from its owner.
The EIN is the IRS’ way of tracing your business activities and taxes. Many entrepreneurs believe that you only have to get an EIN if you plan to hire employees, but this is a wrong notion – whether you hire people or not, the state requires every business to have an EIN.
Getting an EIN should be your top priority because without this, you will not be able to open a business bank account or file your tax returns.
As I mentioned, having an EIN is essential to open a bank account for your business. Once you have it, you can immediately open an account. “What purposes does a business bank account serve if I have a personal bank account?” good question!
First of all it’s a big no-no to mix business and personal matters, so you need to open a separate account. By doing so, you’ll be able to accept checks and payments under your official business name. Also, having a business bank account will establish your Arkansas startup as a separate entity.
If you had a previous account while operating under a different business structure, you need to close it and open a new one.
Although this is not required by Arkansas law, this is one move that will prove to be one of the most helpful for your Arkansas small business. Tax period is one of the most difficult situations that you have to go through and if you’re new in the business industry, you need to talk to a tax advisor.
A tax advisor will explain your responsibilities as a business owner, they will give you insight on how to go about with filing your business taxes, what benefits and tax deductions your business can take advantage of and how your business is going to be taxed.
Since you’re starting a business in Arkansas, your business name is automatically protected in the state, however, in other states, it is not. Therefore, you need to create measures to avoid other business owners to use your company name. Register a trademark so that your business name is protected in all 50 states.
These are the 5 most important things that you need to accomplish after incorporating in Arkansas. Aside from all these, you also need to remember that everything is a continuous process and you also need to understand that there are documents and procedures that you need to do to stay compliant.
To protect your business’s good standing, you can visit the office in your state that is assigned to explaining compliance requirements.
Managing your Arkansas startup is a tough job, and you wouldn’t want to experience more burden because you weren’t able to do these requirements. If you want to run your business without any glitches, you need to successfully complete the incorporation process and comply with all these requirements. Good luck!