Forming your LLC in Arkansas can be easy. This guide will help you get off on the right foot.
Ready to start your business? Plans start at $0 + filing fees.
Excellent
by Rudri Bhatt Patel
Rudri Bhatt Patel is a former attorney turned writer and editor. Prior to attending law school, she graduat...
Updated on: August 4, 2024 · 5 min read
A limited liability company (LLC) offers liability protection and tax advantages, among other benefits for small businesses.
LLC formation in Arkansas is easy. Just follow these six steps, and you'll be on your way to creating your LLC.
You'll need to choose a name to include in your application before you can register your LLC.
Names must comply with Arkansas naming requirements. The following are the most important requirements to keep in mind:
See a complete listing of Arkansas naming rules.
Arkansas requires you to appoint a registered agent for your LLC.
A registered agent is the person or entity authorized to receive service of process and other official legal documents and notices on behalf of your LLC.
A registered agent can be a person (including yourself or an employee of your LLC) or an entity that offers a registered agent service. They must meet the following criteria:
The certificate of organization is a document that officially establishes your LLC by laying out basic information about it.
Prepare a certificate of organization and file them with the Arkansas Secretary of State to register your Arkansas LLC properly. Though it sounds like a big job, that simply means filling out a relatively simple online form and submitting it. You can also send it by mail.
To prepare your certificate, you'll usually need the following information:
Once you file your certificate, the Secretary of State will review the filing. If the certificate is approved, the LLC becomes a legal business entity.
The state will issue you a certificate that confirms the LLC formally exists after the LLC's formation documents are filed and approved.
This certificate will allow the LLC to obtain an Employer Identification Number (EIN), business licenses, and business bank account.
An operating agreement is a document that outlines the way your LLC will conduct business.
Arkansas doesn't require an operating agreement is an essential component of your business. Having a readily accessible, written operating agreement is helpful for various reasons, including settling disputes that may arise over financial agreements and other potential litigation. Without an agreement in place, the courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members.
The operating agreement can include, but is not limited to, the following:
The nine-digit Employer Identification Number (EIN) is assigned by the Internal Revenue Service to identify your LLC for taxes. You can obtain your EIN by mail or online through the IRS.
The purpose of an EIN is to assist with the following:
Registering your LLC gives you a legal foundation to conduct business. Plan to keep your LLC compliant and in active status on the state's website.
All LLC's must pay a minimum $150 tax to the Arkansas Secretary of State each year. Annual franchise tax reports must also be filed with the Arkansas Secretary of State each year by May 1. The $150 payment is due at the same time.
This might include making quarterly tax payments and/or filing an annual report. You also need to maintain a registered agent for your business.
A registered LLC also makes it possible for you to do the following:
Every state has different rules, costs, and considerations for LLC formation.
You may also like
What Does 'Inc.' Mean in a Company Name?
'Inc.' in a company name means the business is incorporated, but what does that entail, exactly? Here's everything you need to know about incorporating your business.
October 9, 2023 · 10min read
How to Start an LLC in 7 Easy Steps (2024 Guide)
2024 is one of the best years ever to start an LLC, and you can create yours in only a few steps.
July 29, 2024 · 22min read
How to Get an LLC and Start a Limited Liability Company
Considering an LLC for your business? The application process isn't complicated, but to apply for an LLC, you'll have to do some homework first.
July 29, 2024 · 11min read