How to Transfer or Move a Corporation from Arkansas to Texas

How to transfer a company to Texas: keep the EIN with no downtime [step-by-step]

How to transfer a corporation to Texas from New York [step-by-step]

How to transfer an LLC from New York to Texas [step-by-step]

How to transfer a corporation to Texas [step-by-step]

How small business owners are transferring their LLCs to Texas [step-by-step]

How to legally move a company to Texas without starting over [step-by-step]

Transferring your business to Texas with no downtime [step-by-step]

How to transfer a corporation to Texas and keep the EIN [step-by-step]

How to transfer your LLC to Texas with no downtime [step-by-step]

How to move a company to Texas without disruption [step-by-step]

How to convert your company to Texas [step-by-step]

How to move your LLC or corporation to Texas from New York [step-by-step]

How to transfer a company to Texas: keep the EIN with no downtime [step-by-step]

How to transfer a corporation to Texas from New York [step-by-step]

How to transfer an LLC from New York to Texas [step-by-step]

How to transfer a corporation to Texas [step-by-step]

How small business owners are transferring their LLCs to Texas [step-by-step]

How to legally move a company to Texas without starting over [step-by-step]

Transferring your business to Texas with no downtime [step-by-step]

How to transfer a corporation to Texas and keep the EIN [step-by-step]

How to transfer your LLC to Texas with no downtime [step-by-step]

How to move a company to Texas without disruption [step-by-step]

How to convert your company to Texas [step-by-step]

How to move your LLC or corporation to Texas from New York [step-by-step]

Redomestication, also known as redomesticating, refers to the lesser-known legal process of transferring or moving the "home state" of an existing corporation, partnership, or LLC to a new state. It means keeping your existing company name, credit, and federal employer identification number (FEIN) without wasting time and money creating a new business entity, applying for foreign registration, or moving assets between companies.
— Prof. Chad D. Cummings, CPA, Esq., M.S.T., LL.M., CMA, CFE, CIA, CRMA, CISA, CITP, FCPA, PFS, CFP

Texas destination-state requirements

A redomestication into Texas is governed by Chapter 10, Subchapters C and D, of the Texas Business Organizations Code together with the law of Arkansas. The transaction requires a written Plan of Conversion, the approvals required by the governing documents and applicable law, a Certificate of Conversion, and, for a Texas filing entity, a Certificate of Formation. The Texas filing must be coordinated with the Arkansas outbound instrument so the same corporation continues without interruption.

Tax considerations when moving a corporation from Arkansas to Texas

Arkansas enacted another income-tax reduction in May 2026. Its top individual rate is now 3.7%, retroactive to January 1, 2026; the top corporate rate remains 4.3% for 2026 and falls to 4.1% beginning January 1, 2027. The Arkansas House's special-session summary confirms those effective dates. A relocation comparison using the former 3.9% individual rate or 5.3% corporate rate would overstate current Arkansas income taxes.

An LLC taxed as a partnership or disregarded entity generally passes its income through to owners; a corporate election changes that treatment. Eligible pass-through businesses may elect an entity-level tax, so pass-through status should not be described as a universal exemption from business tax. Owner residency and the location where income is earned remain relevant after your corporation moves from Arkansas to Texas.

Arkansas's general state sales tax is 6.5%, before local taxes. The state tax on qualifying groceries was eliminated on January 1, 2026, although local grocery taxes can remain. Check the Department of Finance and Administration sales and use tax guidance for product classifications and current local rates. Arkansas has no separate estate or inheritance tax. Property taxes remain tied to the location and assessment of the property.

Annual franchise tax is another distinct cost: an Arkansas LLC generally owes $150, administered by the Secretary of State. Complete the outbound filing and any required destination evidence, then determine whether continuing Arkansas business requires foreign registration and further franchise-tax filings. A charter move alone does not close sales-tax, payroll, or income-tax accounts.

For a corporate move spanning year-end, model the enacted 2027 rate separately from the 2026 return. The lower future rate does not retroactively reduce 2026 corporate liability.

Texas imposes no individual income tax and prohibits a tax on individuals' net income under Texas Constitution article VIII, section 24-a. Texas also has no conventional corporate net income tax. Its franchise tax, however, applies to many corporations, LLCs, and other taxable entities, including businesses treated as pass-through entities for federal income-tax purposes. A federal S corporation election or partnership classification does not, by itself, exempt the business from Texas franchise-tax law.

For 2026 and 2027 report years, the franchise-tax no-tax-due threshold is $2.65 million in annualized total revenue. The general rates are 0.375 percent for qualifying retail or wholesale businesses and 0.75 percent for other businesses, applied to the taxable margin apportioned to Texas. Eligible businesses with no more than $20 million in annualized revenue can use the EZ computation at 0.331 percent, subject to its separate rules. The Texas Comptroller's franchise-tax guidance provides the current thresholds and methods. The threshold is not a deduction from taxable margin and does not establish that all income above it is taxed at the general rate. The compensation deduction limit is $480,000 per person for these report years. Compare the available margin methods using the business's actual revenue, eligible costs, compensation, and Texas apportionment before choosing a computation method.

Businesses at or below the revenue threshold generally no longer file a No Tax Due Report for report years 2024 and later, but an applicable Public Information Report or Ownership Information Report remains required. The ordinary annual deadline is May 15. Texas's state sales tax is 6.25 percent, with local taxes bringing the combined rate as high as 8.25 percent. Sales-tax, unemployment, property-tax, and licensing obligations may continue even when no franchise tax is payable. Texas has no current separate estate or inheritance tax.

Redomesticating a corporation from Arkansas to Texas changes its governing jurisdiction. Actual tax savings depend on the owners' residence, the company's classification, and the location of its operations and receipts. Continuing employees, property, inventory, or qualifying sales in Arkansas can preserve that state's filing and payment obligations. Do not close an account merely because the Texas conversion documents have been accepted.

South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018), permits sales-tax nexus without the former physical-presence prerequisite. 15 U.S.C. § 381 instead provides limited net-income-tax protection for specified solicitation of tangible-goods orders. Wisconsin Department of Revenue v. William Wrigley, Jr., Co., 505 U.S. 214 (1992), interprets that protection. These authorities address different taxes and activities. Review nexus separately for each state, including remote sales and post-move operations, before projecting that redomestication will eliminate a former state's tax burden.

Specific legal requirements to transfer a corporation to Texas from Arkansas

Arkansas has state-specific statutory, approval, filing, fee, and sequencing requirements that must be coordinated with Texas law. The requirements below are the origin-state requirements applicable to this transaction.

1. Arkansas has distinct outbound routes for LLCs and business corporations. An Arkansas LLC can domesticate into another state's LLC under Ark. Code Ann. §§ 4-38-1051 through 4-38-1056, enacted in the Uniform Limited Liability Company Act, Act 1041 of 2021. A business corporation can transfer its state of incorporation under Act 454 of 2001. Both routes require a destination that permits the change. Do not apply the LLC provisions automatically to a corporation or describe the absence of one universal form as the absence of statutory authority. Identify your corporation's current and intended type before preparing the filing.
2. An LLC needs a recorded Plan of Domestication. Under Ark. Code Ann. § 4-38-1052, the plan identifies the company before and after domestication, states how ownership interests will be treated, and includes the destination certificate of organization and the proposed operating agreement. Describe whether each member's percentage, voting power, and distribution rights remain unchanged. If the destination agreement introduces a different management structure or changes transfer restrictions, show those provisions to the members before approval. The internal record should also state the closing conditions and who can implement the approved transaction. A resolution authorizing someone to file forms should be supported by the substantive plan.
3. LLC approval is not simply a manager's decision. Ark. Code Ann. § 4-38-1053 requires approval by all members entitled to vote on or consent to any matter. It separately addresses recorded consent from a member who will incur interest-holder liability after domestication, subject to its defined exception. Review the operating agreement and the statute's mandatory limits before relying on any provision permitting a smaller vote. Record the members who approved and the capacity in which each signed. The public statement's recital that the plan was approved is not a substitute for retaining the underlying consents and the version of the plan they approved.
4. Use the LLC outbound transfer form and provide destination evidence. The Secretary of State publishes a Certificate of Transfer of Domicile (Domestication) from Arkansas, revised December 2024, with a $50 filing fee. It requires the company's name, formation filing date, and the date of the attached authorizing resolution. The form asks for evidence that the destination will accept the transfer and places the Arkansas entity in pending status until the destination evidence is supplied. After filing in Texas, send a certified certificate of organization or other official evidence of the destination organization to Arkansas. Assign this follow-up to a specific person before the transaction closes.
5. Meet the form's 30-day follow-up requirement. The Arkansas LLC instructions warn that if the destination evidence is not received within 30 days of the Arkansas filing date, the company remains active and may incur additional tax requirements. This makes the sequence more important than merely obtaining two acceptance receipts. The statement requirements in § 4-38-1055 include the approval recital and destination organizational record. For an outbound LLC, legal effectiveness is the later of the applicable destination time and the effectiveness of the Arkansas statement. Reconcile those rules with the agency's pending-status process so the closing file explains both the legal effective time and the completion of the public records.
6. Corporations use the transfer-of-jurisdiction procedure. The official Certificate of Transfer of Jurisdiction from Arkansas also lists a $50 fee and requires an authorizing resolution and destination acceptance evidence. Act 454 requires authorization by a majority of voting power present at an annual or special shareholder meeting, or a larger vote required by the articles, with notice identifying the proposed action. Its certificate is signed by the president or vice president and the secretary, with the specified acknowledgment. Follow the corporate requirements rather than copying LLC signature language. Review any shareholder agreement or class protection that adds to the applicable approval requirements.
7. Complete the corporate destination filing promptly. The corporate form uses the same pending-status warning and asks for certified destination evidence within 30 days of the Arkansas filing. Act 454 also requires certified evidence of the new incorporation to be filed with Arkansas within 30 days after the corporation receives it. Organize the closing to satisfy both the published administrative deadline and the statutory evidence requirement. Pay the taxes and charges required before the Secretary of State issues the outbound certificate. A planned relocation does not stop the Arkansas franchise-tax calendar while the record remains active and the required follow-up is outstanding.
8. Provide a procedure for an amended or abandoned LLC plan. Ark. Code Ann. § 4-38-1054 allows amendment under the approved plan or the statutory approval method, while protecting members against specified changes affecting consideration or governance. An approved plan can be abandoned before effectiveness. If the statement has already been delivered for filing, a signed statement of abandonment must be delivered before it takes effect. Identify who will act if Texas requires a material revision or cannot accept the filing on schedule. Do not treat an amendment to the destination operating agreement as a clerical correction when it changes rights that members approved.
9. LLC domestication continues the same entity. Ark. Code Ann. § 4-38-1056 preserves property and existing debts and provides that the business continues without interruption. It does not require winding up the LLC or distributing its assets. Pending claims and enforceable owner liabilities remain relevant after the move. For a corporate transfer, document the continuity supplied by the destination law alongside Arkansas's transfer procedure rather than citing the LLC effect provision. Review loan documents and leases for consent or notice requirements addressing a jurisdiction change. Banks, insurers, and licensing boards may need updated records even where ownership and business operations remain unchanged.
10. Check retained Arkansas property and regulated activities. A business that owns Arkansas real estate after redomestication should coordinate title records and lender requirements with the resulting entity's name. The transaction may also require an update to professional or industry licensing records; business-entity acceptance alone does not establish licensing approval. Confirm the destination's name availability and permitted professional ownership before signing the plan. Review federal tax classification and EIN treatment based on the actual transaction, particularly if a proposed move also changes entity type. Keep those determinations with the plan rather than assuming that the term domestication resolves every tax or licensing question.
11. Keep the plan and the pending-status evidence together. § 4-38-1055(e) permits a signed LLC plan meeting the statement requirements to be filed instead of a separate statement. That option does not eliminate the destination organizational evidence or the agency's completion process. If using the published transfer form, retain its attached resolution and the full internal plan so the approval can be substantiated. After supplying the certified destination record, check the Arkansas entity history and retain evidence that the pending outbound transaction was completed. A copy of an email sending the certificate is useful delivery evidence, but the final state record establishes whether the follow-up was processed.
12. Finish franchise-tax and foreign-registration work. The Arkansas Secretary of State administers franchise tax, while the Department of Finance and Administration handles separate income and sales taxes. An LLC's annual franchise tax is generally $150, and an unfinished outbound record can lead to further assessments. If your corporation continues Arkansas business after moving from Arkansas to Texas, determine whether foreign registration and an Arkansas registered agent remain necessary. Otherwise, coordinate account closure with the actual cessation of taxable activity. Preserve the certified destination evidence, proof Arkansas received it, and the final public status alongside the approved plan and tax correspondence.

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