After complying with all applicable notice requirements, then the contractor may file the lien. The statute is somewhat opaque to the uninitiated. The actual document to be filed is the Statement of Account (See Ark. Code Ann. 18-44-117). The Statement of Account must be filed with the circuit clerk for the county in which the property is located. The Statement of Account must be filed within 120 days of the last day on which work was performed or material delivered.
An S Corporation is a special type of corporation exclusively created through an IRS tax election. S Corporations avoid double taxation, but the financial liability of the owner is extremely limited in this case. Here, profits and losses can pass through personal tax return, because the business itself is no longer liable. We can discuss with you in depth on what this means and why it may or may not be a relevant option for your business.
When you get into a partnership, the setup is simple. This is a business where two or more people are the owners of all. Both partners put everything into the business and share the responsibility that comes with it. With this can potentially bring several issues and legal implications. Agreements for this sort of business are not legally required, but we think it is extremely risky to operate without one.
A corporation is a totally independent entity owned by shareholders. The business itself is liable for everything, not the people behind it. This is often a complex form a business as there are heavy tax and legal requirements as well as administrative fees that come along with it. Typically the corporation setup is for the well-established company with several employees. Going public through an IPO can be a major selling point to investors or attracting employees.
A co-op is a business that is owned and operated simply for the benefit and use of those interested in the services. The profits and earnings are distributed among “user-owners”. Here, a board of directors will have power over the direction of the company. Members can purchase shares to become a part of the cooperative. Co-Ops are most commonly seen in the retail, agriculture, restaurant and healthcare industries.
This is the most common and most simple business formation. The business is owned and run by one person. There is no distinction between the individual and the business. With a sole proprietorship, one person is entitled to all the profits, responsible for all the losses, liabilities and debts.
We often consult our clients before they dive into a new business venture. While there are several steps to creating a company, deciding what Business Structure is best suited for your business might be one of the most important. This choice will obviously have both legal but tax implications in your future. When you are choosing a business structure, you have six options. As we dive deeper into the series we will explore all of these options in depth to give you the background knowledge you need. But for now know this:
The most important aspect of any construction lien is the notice requirement. Arkansas lien law has different requirements for residential property than for commercial property. Regardless, failure to give proper notice for either type of property will prevent you from asserting a construction lien.