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As a certain type of small business corporation, an S corp offers many advantages in the form of tax benefits, liability protection, increased prestige, and generous retirement contribution limits. The main disadvantages are a fairly involved setup process and requirements that must be carefully followed.
An incorporator/organizer is the person responsible for filing the articles of incorporation or certificate of organization. The incorporator/organizer may or may not be an officer, shareholder or the registered agent.
Limited Liability Company Must file Articles of Organization with the Arkansas Secretary of State. Allow members to manage a company themselves or to elect managers.
LLCs can have an unlimited number of members; S corps can have no more than 100 shareholders (owners). Non-U.S. citizens/residents can be members of LLCs; S corps may not have non-U.S. citizens/residents as shareholders. S corporations cannot be owned by corporations, LLCs, partnerships or many trusts.
Overview. Official documents must be filed with the state in order to form a Arkansas corporation, and state filing fees must be paid. Form 2553 electing special tax status must be filed with the IRS. A Arkansas S corporation is considered, by law, to be an individual entity separate from its owners (shareholders).