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Arkansas Foreign Registration File in Arkansas

Arkansas Foreign Registration  ·  If you skip it

What an unregistered foreign LLC risks in Arkansas

An out-of-state LLC that operates in Arkansas without registering faces a fine of up to $5,000 per twelve-month stretch, counted from the day it began until the day it registers (A.C.A. 4-38-913(e)). It also owes the fees registration would have cost and cannot sue in Arkansas courts until it registers. Its contracts remain valid. The sections below set out each consequence.

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Consequences and their sections

ConsequenceWhat the Code saysSection
Civil penaltyUp to $5,000 in each twelve-month stretch (a partial stretch counts), ending when it registersA.C.A. 4-38-913(e)
Back feesAll fees that registration would have imposed, and all penaltiesA.C.A. 4-38-913(d)(1)
RecoveryThe Attorney General recovers what is due and brings the penalty actionA.C.A. 4-38-913(d)(2), (f)(1)
InjunctionThe court must bar further business until the company has paid what it owes and come into complianceA.C.A. 4-38-913(f)(2)-(3)
Court accessNo action, suit or proceeding until registeredA.C.A. 4-38-913(a), 4-38-902(b)
ContractsContracts stand, and those who signed them can still enforce themA.C.A. 4-38-913(b)
DefendingThe company can still defend an Arkansas caseA.C.A. 4-38-913(b)(3)
OwnersOwners are not made personally liable for company debts by the lapse aloneA.C.A. 4-38-913(g)
ServiceWhere it keeps no agent, or one who cannot be located, it can be served under A.C.A. 4-20-113A.C.A. 4-38-913(c)

How the twelve-month count runs

Unlike a calendar-year test, Arkansas counts penalty periods from the date the company began transacting business and ends the count on the date it becomes registered. A company that started on March 10 has its first period run to March 9 of the next year, whatever the year-end. The statute sets a limit, not a fixed charge, and the sum is for the court to set when the Attorney General sues.

What the ceiling adds up to

Twelve-month periods touchedHighest civil penalty
One$5,000
Two$10,000
Three$15,000

These are ceilings from the Code.

The injunction is mandatory

The wording of the Code is "shall": when a court finds that a foreign LLC broke the chapter by doing business unregistered, it must issue an injunction on top of the civil penalty, and the bar lasts until the company has paid its penalties, interest and the court's costs and has otherwise come into line (A.C.A. 4-38-913(f)(2)-(3)). A separate section lets the Attorney General sue to enjoin on its own. Registering is the compliance that ends the injunction.

What it does not do

The lapse does not undo the company's contracts, stop it defending a lawsuit, or turn its members into guarantors. The protection that limits a member's or manager's liability stays intact; operating unregistered does not by itself strip it (A.C.A. 4-38-902(d)).

Never registered is not the same as terminated

A registered LLC can lose its registration through a different route: the Secretary of State may terminate it if fees are unpaid 60 days after they fall due, the annual report is 60 days late, there is no agent, or an agent change goes unreported for 30 days, after a notice that cannot take effect sooner than 60 days later (A.C.A. 4-38-910(a)). The company has that long to put things right. The penalty above belongs to a company that never registered.

Corporations

A foreign corporation without a certificate of authority cannot maintain a proceeding in Arkansas on a cause of action arising from its business here, and civil penalties of $100 to $5,000 can apply (A.C.A. 4-27-1501). The Form F-01 page covers the application.

Fixing it

Registering ends the unregistered period and, with it, the running count. The route is in the full guide: Form FL-01, $270 online. We prepare it for $199. What to say about the past, and whether to approach the state at all, depends on your facts; an Arkansas business lawyer can tell you.

Registered agent: first year included, then $149 a year

$199 plus the state fee, including your first year of registered agent service; after that the agent service renews at $149 a year.

Penalty questions

Does Arkansas fine automatically?

No. The penalty is recovered in an action by the Attorney General.

Is there a grace period before the penalty starts?

The Code counts from the date the company began transacting business.

Can I register and keep my existing contracts?

Yes. The Code says the lapse does not impair a contract.

Does registration end an injunction?

The bar stays until the company has paid what it owes and complied with the chapter; registering is part of that.

Our fee and the Arkansas fee

Register in Arkansas

+ $270 Arkansas fee

  • Form FL-01, Application for Certificate of Registration of Foreign Limited Liability Company, filed online at the lower fee
  • Your home state's certificate of existence, ordered for the filing
  • An Arkansas registered agent: ours, or the one you already have
  • The filed certificate of registration, sent to you with your first franchise tax date
  • Renewal: after the first year, the agent service renews at $149 a year

$199

Arkansas

Start my Arkansas filing

We show our fee and the Arkansas fee as two lines at checkout. The Arkansas fee passes through at cost. $199 plus the state fee, including your first year of registered agent service; after that the agent service renews at $149 a year.

Working in Arkansas?

File through us and your company pays the online rate while we handle the certificate, the application and the agent.