Closing the Book: How to Dissolve an LLC in Arkansas

Closing the books, paying off debts, and formally dissolving an LLC are key steps in closing a business. If you have an LLC you no longer use, whether that’s a company LLC closing its doors or an LLC that’s never been used, legally dissolving the LLC can prevent penalties and fees and free you to pursue other business interests. Read on to learn how to dissolve an LLC in Arkansas!

Understanding LLC Dissolution in Arkansas

Dissolving an Arkansas LLC involves closing business operations or terminating LLC activities. However, there are as many reasons to dissolve an LLC as there are business owners, so it can make sense for various reasons.

If you created an LLC and don’t need it anymore, dissolving it is the best course of action to avoid fees or penalties. Reasons you might dissolve an Arkansas LLC include:

• The company is no longer economically viable
• You’re moving on to other business ventures
• The business purpose is completed

In Arkansas, to dissolve an LLC, you’ll need to file a Statement of Dissolution for a limited liability company with the Arkansas Secretary of State. You’ll need to pay a filing fee of $45 for online filings or $50 for mailed filings. 

Why Dissolve an LLC in Arkansas?

Business owners choose to dissolve an LLC for a variety of reasons, but the most common is that you don’t need the LLC anymore. This could be because the LLC has served its purpose, the business is no longer economically viable, or you want to pursue another business venture through a different business entity.

Likewise, if you have multiple LLCs for multiple purposes, dissolving the ones you don’t use can simplify filing and management, and reduce costs.

Reasons to dissolve an LLC include:

• The LLC is no longer needed
• Loss of business viability 
• The business is closed 
• Bankruptcy
• The business is no longer allowed to operate in the US 

If you’re a visa holder who created an LLC, you don’t need to dissolve an Arkansas LLC that is still in use or has a business purpose, even if you’re no longer in the US. 

How to Dissolve an LLC in Arkansas in 7 Steps

Follow the steps below to dissolve an Arkansas LLC, from formally voting to dissolve to winding down business activities. 

1. Review Your LLC’s Operating Agreement

First, understand the dissolution procedures outlined in your LLC’s operating agreement. This includes information on members’ ownership of the LLC, their voting rights, and dissolution procedures. It will also note the signatures, voting, or other legal procedures required to dissolve the LLC. 

2. Vote to Dissolve an LLC

Next, you will need to convene a meeting with all LLC members to discuss and approve the dissolution. This can be done online or in person and may require unanimous agreement, depending on the procedures outlined in the operating agreement. 

3. File Articles of Dissolution

Prepare and file the necessary legal paperwork, known as the Statement of Dissolution in Arkansas, with the appropriate state agency responsible for LLC registration. This form can be submitted online through the State Franchise Tax and Annual Report Filing System or by mail. 

Printed forms can be mailed to:

Arkansas Secretary of State

1401 W. Capital 

Suite 250

Little Rock, Ar

72201

If you have questions, you can contact the Secretary of State by phone at 501-682-3409.

4. Notify Tax Agencies and Pay Remaining Taxes

Ensure you file all necessary tax returns, including income and employment tax returns, with the appropriate tax authorities. On federal filings, you must check the final return box on your company’s federal tax forms. Consult with a tax professional or CPA to complete these filings correctly and file on time. 

5. Inform Creditors and Settle Existing Debt

A key part of closing an Arkansas LLC is settling all debts and distributing assets. Plan to pay off all credit card debt or loans and notify creditors. You must close any lines of credit as part of dissolving an LLC.

6. Wind Up Other Business Affairs

Depending on the business equipment and nature, you may need to sell machinery, inventory, or assets and inform suppliers, customers, and key stakeholders. You’ll need to inform any employees and make relevant plans for a severance package, letters of recommendation, or new job opportunities. 

Finally, plan to close business bank accounts, cancel business licenses, and close any other business accounts or lines of credit. If you used an Arkansas registered agent service, inform the registered agent and cancel the service. 

Winding up an Arkansas LLC includes:

• Notifying suppliers and customers
• Canceling business licenses and permits
• Settling employee termination packages
• Closing company bank accounts
• Closing business lines of credit

7. Distribute Remaining Assets

Once all debts, obligations, and tax liabilities have been settled, the final step for the Arkansas LLC is to distribute the remaining assets and profits among the LLC members according to the agreed-upon terms outlined in the operating agreement. 

The LLC operating agreement outlines each member’s ownership percentage and can be used to distribute assets among members and finalize company dissolution correctly. 

How Much Does It Cost to Dissolve an LLC in Arkansas?

To dissolve an LLC in Arkansas, an online filing costs $45. If you file the Statement of Dissolution for an LLC in Arkansas by mail, it costs $50. 

Should I Dissolve My LLC Myself or Hire an LLC Dissolution Service in Arkansas?

You could opt to dissolve the LLC yourself or hire a professional service to dissolve an LLC yourself. However, it can be more advantageous to tap professional assistance for this matter to help save both time and money, even in company dissolution. 

The support of a tax professional, lawyer, or professional dissolution service can provide the expertise and support you need to deal with all that dissolution involves. You could hire professionals to handle the dissolution for you, freeing up your time to focus on new opportunities. 

Get Professional Arkansas LLC Dissolution Support from doola 

Wrapping up business operations involves many components, from informing key stakeholders and dealing with employees to paying off debt and taxes, and filing the dissolution paperwork. If you need extra support, consider contacting doola for customized LLC dissolution services. 

With doola’s dissolution service, you just need to create an account and upload basic information about your company. Then, doola will prepare the Articles of Dissolution and get back to you if any additional information is needed. When Arkansas confirms the dissolution, doola will inform you immediately. Get doola LLC dissolution to save time!

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