Are you passionate about a cause and ready to take your impact to the next level? Incorporating a nonprofit in Arkansas could be your best next step. In today’s digital age, user-friendly online incorporation services make this process doable and efficient. 

Whether your mission is to improve public health, tackle social issues, or provide educational resources, or something else, forming a corporation grants you the legal foundation to operate effectively. You’ll be better positioned to apply for grants, and you might also qualify for tax benefits. Plus, you can get started right from your home, using online platforms designed to simplify incorporation. 

What is a nonprofit corporation?

In Arkansas, a nonprofit corporation is a legal entity established to serve a specific purpose—be it charitable, educational, religious, or social. 

Unlike for-profit corporations, nonprofits are not about distributing earnings to shareholders; any revenue generated is funneled back into advancing the organization’s mission. These corporations operate under the Arkansas Nonprofit Corporation Act, which outlines the rules for starting and running a nonprofit.

When you incorporate, your nonprofit becomes its legal entity, separate from you as an individual. This offers multiple benefits: liability protection for those involved, potential tax-exempt status, and enhanced credibility when seeking grants or fundraising. It also provides a structure for managing your organization, contributing to long-term stability.

Why form a nonprofit corporation in Arkansas?

Arkansas offers unique advantages when it comes to incorporating a nonprofit, and being aware of these can save you time and money:

• Affordability: Arkansas is among the more budget-friendly states for incorporating a nonprofit, starting from an initial fee of $50.
• Efficiency: You can expedite your incorporation process by filing your Articles of Incorporation electronically at the Arkansas Secretary of State website.
• Purpose flexibility: Unlike some states, Arkansas has a broad list of acceptable purposes for nonprofits, ranging from charitable and religious to educational and scientific.
• Membership choices: You can choose whether your nonprofit should have members, offering flexibility in governance structure.
• Local funding: Incorporating in Arkansas opens the door to various state-specific grants and resources tailored for nonprofits.
• Easy annual reporting: You must file an annual report to keep your nonprofit in good standing. Maxfilings can assist with this process.
• Privacy: Arkansas allows you to file your Articles of Incorporation without naming initial directors, giving you more privacy in the early stages.
• Tax benefits: Achieving federal tax-exempt status also makes you eligible for state tax exemption in Arkansas, simplifying your finances.

Important update on nonprofit annual report filings in Arkansas

While Act 569 of 2007 initially mandated nonprofit corporations to submit their annual reports to the Secretary of State’s office by August 1st of each year, there’s been a significant change.

Act 137 of 2019 has now adjusted this deadline. Charitable organizations must now file their reports no later than 180 days following the end of their individual fiscal year. This provides flexibility and aligns the reporting period more closely with each organization’s financial cycle.

How to form an Arkansas nonprofit?

Forming a nonprofit organization in Arkansas can be simplified by using the Maxfilings comprehensive 8-step guide. The guide will help ensure that you’ve fulfilled federal and state requirements while laying a strong foundation for your nonprofit’s mission.

Step 1: Define your nonprofit’s purpose

It’s crucial to articulate the purpose of your nonprofit organization for both Arkansas state and federal tax purposes. This should align with the specifications outlined in section 501(c)(3) of the Internal Revenue Code for tax-exempt status.

Step 2: Choose an appropriate name

Arkansas state law does not require an identifier such as “Corporation,” “Company,” “Incorporated,” or “Limited.” 

Before finalizing the name, consider these factors:

1. Mission-specific;
2. Memorable for donors and clients;
3. Maintains professionalism for a strong first impression; and
4. Incorporates emotional appeal to build trust and credibility.

Step 3: Draft your organization’s bylaws

Creating bylaws isn’t just good practice—it’s a prerequisite for IRS filing. Your bylaws should set forth basic governance rules such as board meeting schedules, voting protocols, and procedures for amending the bylaws themselves. Maxfillings can craft bylaws that are tailor-made for your nonprofit’s needs.

Step 4: Appoint a registered agent

Arkansas law mandates that your nonprofit list a registered agent when filing. This individual or entity is your formal point of contact for governmental communications, including legal matters.

Step 5: Assemble your leadership team

Nonprofits, like corporations, require a structured leadership team comprising directors, executives, managers, and administrative staff. It’s advisable, although not obligatory in Arkansas, to have at least three board directors, one of whom should not be an immediate family member, to meet IRS guidelines for 501(c)(3) status.

Step 6: File Articles of Incorporation

The Articles of Incorporation is a key document you’ll file with the Arkansas Secretary of State to incorporate your nonprofit. It should include details such as your organization’s name, purpose, the registered agent’s information, and whether it’s a membership-based entity.

Step 7: Secure tax exemptions

Start by acquiring an Employer Identification Number (EIN) and filing IRS Form 1023 for federal tax-exempt status. Don’t overlook state and local tax exemptions for income, sales, and property taxes upon approval. Each year, maintain your tax-exempt status by filing Form 990 with the IRS.

The IRS lists these exemptions for organizations not required to file Form 1023: 

• Churches, including synagogues, temples and mosques.
• Integrated auxiliaries of churches and conventions or associations of churches.
• Any organization (other than a private foundation) that has gross receipts in each taxable year of normally not more than $5,000.

Step 8: Acquire necessary licenses and permits

Lastly, ensure you get all the required local and state business licenses and permits. This might include permissions for fundraising activities in Arkansas. The Maxfilings team can assist you in identifying and applying for these, making the process more manageable.

FAQs

Why is Maxfilings your ideal partner for non-profit incorporation in Arkansas?

• Transparent pricing: No hidden costs—just competitive, transparent fees.
• Convenience: The Maxfilings  platform compiles and modifies your information securely online at your own pace.
• Security: Your data is safe, thanks to robust security measures.
• Added benefits: We’ve partnered with SEO Advantage, Inc. to provide valuable services in PR, web development, and more.
• Satisfaction guaranteed: We’re confident in our services and offer a 100% satisfaction guarantee.

Want a seamless and simplified process for incorporating your nonprofit in Arkansas?

The Maxfilings Basic package is $0 + $45 Arkansas state fee, with no hidden charges. Plus, you can save your progress online, get guidance at every step, and enjoy comprehensive services designed for a smooth incorporation process. Start your journey with MaxFilings today!