How to Dissolve (Close) an LLC in Arkansas

If you have a limited liability company (LLC) in Arkansas, you may need to shut down the business at some point. On the other hand, maybe you’ve started another company or decided to relocate to another state — whatever the reason, you’ll need to follow the somewhat complicated LLC dissolution process. 

If done incorrectly, you’ll still be responsible for annual reports and fees and could face additional penalties. But, lucky for you, this handy guide explains how to dissolve an LLC in Arkansas. 

Properly shutting down an LLC involves several crucial steps, as detailed below.  

1. Vote for Dissolution

LLC owners must vote to dissolve the LLC. Hopefully, you have an operating agreement that details the process. If not, Arkansas law requires you to gain consent of all members. Once you do so, you’ll need to draft a resolution to dissolve the LLC. 

2. Cancel Business Licenses and Permits

If you were required to get licenses and permits for your business, you’d need to contact the issuing agencies to cancel them so that you’re not charged renewal fees. If you have any outstanding fees, you’ll likely need to pay them before you are allowed to cancel.

3. Notify Creditors

If you owe money to any creditors, you should notify them in writing of the dissolution and give them detailed instructions on filing any claims for the outstanding debt. In Arkansas, you must provide a mailing address for claims and a deadline of at least four months after receiving the notice.

If you don’t provide notice to creditors, you’ll still be responsible for any claims filed even after your LLC dissolves.

4. Notify Tax Departments

Notify any relevant tax authorities of the dissolution and pay any outstanding taxes due.

In Arkansas, you can only file for dissolution once you’ve filed all your tax year filings and filed a Final Tax Report. However, you can do so online through Arkansas’ State Franchise and Annual Report Filing System.

5. Cancel Contracts and Settle Financial Obligations

If you have contracts with vendors, lessors, or any other outstanding financial obligations, you’ll need to ensure all your obligations are fulfilled and all contracts are canceled. 

6. Distribute Assets to Members

If the LLC has any assets remaining in any form after all financial obligations have been settled, they must be distributed to members based on LLC ownership percentages. If the assets are equipment, property, or other non-cash assets, they’ll need to be sold first so distributions can be made in cash. 

7. File the Dissolution Papers with Arkansas

You must officially file a Statement of Dissolution in Arkansas to dissolve your LLC. You can do so either online or physically through the Arkansas Secretary of State’s LLC forms page. Scroll down until the row says “Statement of Dissolution.”

Filing Online

From the Arkansas Corporations Online Filing System, find the section for Domestic LLCs and click on “Statement of Dissolution for LLC – LL-04”. Next, enter your LLC’s filing number, and click “Start Form.”

Go through the form, and pay the $45 online filing fee.

Filing Physically

To file by mail or in person, download the Statement of Dissolution from the Secretary of State’s website, fill it in, and print it out.

Attach the $50 filing payment payable to “Arkansas Secretary of State,” and either mail it or deliver it to:

Business & Commercial Services
Victory Building
1401 W. Capitol Avenue, Suite 250
Little Rock, AR 72201

In Closing

Regardless of the reason, LLC dissolution must be done right to avoid legal issues and financial penalties. Therefore, it’s highly recommended that you employ the services of an attorney to ensure everything is done correctly and all bases are covered.