Best Business Structure to Form in Arkansas

Business Structure Form Arkansas

Best Business Structure to Form in Arkansas. When starting a business, the first thing you need to consider is your business structure. Everybody begins as a startup, and all the top companies in the industry today know that choosing the appropriate business structure is vital to achieving success.

Although everything is relative, you still might want to know and explore the various possible structures for your business. Once you have the stack of knowledge about a corporate’s legalities, you can now start deciding what’s best for you. To guide you through the process, this article will explain and present a few business structures and what could be the best among them.

Four Basic Types of Business Structure

Legally organizing your business is essential, and there are four primary structures you can choose to have. These are:

Sole Proprietorship

Among the four types, the sole proprietorship is the most isolated one. If you are an individual who wants to take your own path in business, the sole proprietorship is the right fit for you. This is also the most affordable and most accessible way to organize your business because no state filing is needed. However, if your business is sued, your personal assets will also be at risk. Why? It is because there is no separation between your personal and business liabilities.

General Partnership

Business partners is the famous term you would associate with this type of structure. It is composed of two or more entrepreneurs who decided to build and operate a business together. Like a sole proprietorship, it needs a state filing and has the same system when it comes to unlimited liabilities. You and your partners’ assets are at risk once your business gets sued or bankrupted.


A corporation is a total separated entity from you. However, it is harder and more expensive to form, which is the sole proprietorship’s complete opposite. The good thing about a corporation is the protection of its personal assets. When your company gets sued, rest assured that your private properties and investments will not be at risk. Moreover, this type of legal structure requires annual meetings, formal minutes of the meetings, issuance of stock certificates, etc.,

If you plan to form a corporation in Arkansas, the fee starts at $45, and the Articles of Incorporation should be filed and submitted to the Arkansas Secretary of State.


Limited Liability Company (LLC) is the most ideal and feasible legal structure for startups like you. It requires state filing, and if you are asking how much does an LLC cost in Arkansas, if you’re planning on forming one in that state, it will require you to pay $50 for the filing fee if done by mail and $45 online. Of course, there are other fees you need to pay as well. One winning feature of LLC is its limited liability. It works just like a corporation, wherein your personal assets are separated from your business. You don’t have to worry about the risk of losing your investments in this type of structure. Likewise, it has the most flexible taxation among the four legal structures. Also, for new entrepreneurs, a Limited Liability Company would be the safest way to legalize your business.


When starting a business, you need to do adequate research on the type of business structure most suitable for you. You also need to know the process and documents required for each one so it would be easier for you when you finally decide on a venture. Building a startup isn’t easy, you will need to exert a lot of effort, time, and money. You might even have sleepless nights to keep it afloat. But the whole ordeal would all be worth it in the end especially when you become established. So what are you waiting for? Pave the way for your new business venture as early as today!




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