State-By-State Initial Compliance - Arkansas
For a general discussion on starting a nonprofit organization, please refer to our article, Starting a Nonprofit Organization.
To view annual filing requirements for Arkansas nonprofit organizations, refer to our annual filings page:www.hurwitassociates.com/l_s_annual_ar.php.
- To Incorporate in Arkansas
Submit Articles of Incorporation to:Arkansas Secretary of State
Business and Commercial Services
1401 West Capitol Avenue, Suite 250
Little Rock, AR 72201 Information: (888) 233-0325
Web Site: www.sos.arkansas.gov/corp_ucc.html
Filing Fee: $50
Note: The Articles of Incorporation may be filed online.
- To Obtain 501(c) Tax-Exempt Status
a. Submit Form 1023 (501(c)(3) organizations) or 1024 (other 501(c) organizations), Application for Recognition of Exemption to:Note new address:
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192 Information: (800) 829-1040
Forms: (800) 829-3676
Web Site: www.irs.gov/charities
Form 1023 Filing Fee: $850 ($275 for IRS Form 1023-EZ)
Form 1024 Filing Fee: $850 ($400 if annual receipts will average not more than $10,000 in the first 4 years)
Note: Certain 501(c)(3) organizations, including those with gross revenues at or below $50,000 annually, may qualify to file the online Form 1023-EZ, Streamlined Application for Recognition of Exemption. For more information and to determine if you are eligible for this form, refer to our Form 1023-EZ FAQ.
b. 501(c)(4) organizations formed after July 8, 2016 must file Form 8976, Notice of Intent to Operate Under Section 501(c)(4), electronically within 60 days of formation:Web Site: services.irs.gov/datamart/login.do
Filing Fee: $50 (This fee must be paid through the pay.gov website)
Notes: This filing must be completed by all 501(c)(4) organizations - including "self-declaring" organizations that do not file IRS Form 1024.
For more information about this filing, refer to the IRS website.
- To Obtain Arkansas Corporate Income Tax Exemption
Submit a copy of the IRS Determination Letter, a copy of pages 1 and 2 of the IRS Form 1023 (or 1024) and a statement declaring Arkansas Code Exemption (Arkansas Code Annotated 26-51-303) to:Arkansas Dept. of Finance & Admin.
Corporation Income Tax Section
PO Box 919
Little Rock, AR 72203-0919 Information: (501) 682-4775
Fax: (501) 682-7114
Web Site: www.state.ar.us/dfa/
Note: If the organization has not yet obtained tax-exempt status from the IRS, it may still apply for Income Tax Exemption in Arkansas by submitting a copy of its Articles of Incorporation, Bylaws and Form AR1023CT to the above address.
- To Register for Arkansas Sales Taxes
In general, nonprofit organizations are not exempt from sales taxes on purchases made in Arkansas.
Nonprofit organizations must also collect sales tax on sales of tangible personal property. To do so, they must complete the Combined Business Tax Registration and submit it to:Arkansas Combined Registration
PO Box 8123
Little Rock, AR 72203-8123 Information: (501) 682-1895
Fax: (501) 682-7904
Web Site: www.arkansas.gov/dfa/excise_tax_v2/st_index.html
- To Register with the Arkansas Attorney General
Before soliciting in Arkansas, nonprofit organizations must submit the Charitable Organization Application for Registration along with a copy of the IRS Determination Letter, Articles of Incorporation, any contracts with paid solicitors, commercial co-venturers or fund-raising counsel, and the most recent IRS Form 990 to:Office of the Attorney General, Consumer Protection Division
ATTN: Charitable Registration
323 Center Street, Suite 200
Little Rock, AR 72201-2610 Information: (501) 682-6150
Web Site: www.ag.state.ar.us/
Notes: If total revenue exceeds $500,000 an audit is required.
Certain nonprofit organizations, such as religious organizations,educational institutions, political organizations, governmental organizations, nonprofit hospitals, and those receiving less than $25,000 in contributions per calendar year, are exempt from this filing but must submit an exemption application to the Attorney General's office. Consult Arkansas Code § 4-28-401 for details.
If the organization will have employees, the following filings are also required:
- To Register with the Arkansas Department of Finance and Administration
Complete the New Business Registration online for an employer withholding account.Arkansas Department of Finance and Administration
PO Box 8123
Little Rock, AR 72203-8123 Registration: (501) 682-1895
Information: (501) 682-2212
Web Site: www.dfa.arkansas.gov/offices/incomeTax/withholding/Pages/default.aspx
Note: This registration may also be completed in paper form by completing and filing the Combined Business Tax Registration Form (Form AR-1R) at the address above.
- To Register with Arkansas Department of Workforce Services
Complete the employer registration online to apply for a new Employer Account Number.Arkansas Department of Workforce Services
PO Box 8007
Little Rock, AR 72203-8006 Information: (501) 682-3798
Web Site: www.arkansas.gov/esd/Employers/
Notes: This registration may also be completed in paper form by completing and filing the Status Report at the address above.
For more information, refer to the Department of Workforce Service's Employer Handbook and employer information page.
Important note about unemployment insurance: Many states allow nonprofit organizations to fund unemployment insurance benefits on a reimbursable basis. This method of funding unemployment insurance may require additional filings not listed here. Furthermore, electing this method may require the organization to register and file in paper format. Organizations contemplating this method of funding their unemployment insurance obligations should check with the appropriate state office administering the unemployment insurance in that state.