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Forming a Corporation

Forming a Corporation for Your Business or Nonprofit

forming a corporation for your business or nonprofit

WHAT IS A CORPORATION?: A corporation is one of the more complex forms of business organization. Your corporation will be a legal entity, existing apart from its owners or shareholders. As a separate entity, your corporation will have its own rights, privileges and liabilities apart from the shareholders, officers and board of directors. Your new corporation will be able to buy and sell property, enter into contracts, sue and be sued. Your corporation will be managed by its elected officers and board of directors.  You can form a corporation for profit or nonprofit organizations.

DIFFERENCES: How are corporations different from other business entities? Corporations are unaffected in their duration by death or transfer of shares by any of the owners.  Corporations require more extensive record keeping than other business entities.  Corporations pay taxes on their profits, which are distributed to owners via dividends.

HOW?: How do I incorporate my business?  A corporation is created by filing its Articles of Incorporation with the Arkansas Secretary of State.

REQUIREMENTS: The following information is required for drafting and filing the articles of incorporation:

  • The name of your organization;
  • The name and address of your corporation’s incorporators;
  • A statement as to whether your organization will have members;
  • An explanation of how your organization’s assets will be distributed if the organization dissolves; and
  • The name and address of your organization’s first registered agent.

For nonprofits: You will also need to declare whether your organization is a public benefit, mutual benefit, or religious corporation.

INCORPORATING A NONPROFIT: The Arkansas Secretary of State offers two different forms for nonprofit organizations to incorporate:

  1. The first form is the Articles of Incorporation – Domestic Nonprofit, intended for nonprofit organizations that will NOT be seeking the IRS federal tax exemption.
  2. The second form is the Articles of Incorporation – Domestic Nonprofit, with 501(c)(3) Compliant Language, intended for nonprofit organizations that WILL be seeking the IRS federal tax exemption, and includes sample provisions to assist the filers.

If you need help with the legal documents involved in starting your new business, please contact Deborah L. Hardin at The Hardin Law Firm, PLC, or a licensed attorney in your state.

ATTORNEY: Learn more about attorney Deborah L. Hardin.

SERVING: Cabot, Beebe, Ward, Searcy, Jacksonville, Lonoke County, White County, Faulkner County, and other central Arkansas areas. We also routinely serve out-of-state clients, who require representation in Arkansas.

DISCLAIMER: The information contained in this web site is intended to convey general information. It should not be construed as legal advice or opinion. It is not an offer to represent you, nor is it intended to create an attorney-client relationship.