Are you ready to turn your business idea into a reality? If so, starting an Arkansas LLC could be the perfect next step. Not only does it offer legal protection and tax benefits, but We’ll walk you through the steps to establish your LLC in Arkansas and answer some of the most common questions about Arkansas LLCs.
Step 1: Name your Arkansas LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Create an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Arkansas LLC
When you start a business in Arkansas, it’s essential to ensure your chosen name follows Arkansas’ naming regulations:
- It must include “limited liability company,” “LLC,” or “L.L.C.”
- It should not match any existing business names in the state.
- Avoid using terms reserved for government agencies.
- Steer clear of restricted words such as “bank” or “attorney.”
- Ensure your name is distinct from other businesses already in operation.
Additional considerations:
Reserve your name: You can reserve names for up to 120 days in Arkansas by filling out a form and paying $25 by mail or $22.50 online if you’re not ready to register your LLC but worry about someone taking your chosen name.
Website Domain: Even if you need more time to be ready to create a website, securing your domain name is wise. Before you finalize your LLC name, check if the web address you want is available and suits your business to keep things simple and protect your brand online.
Step 2: Choose a Registered Agent
To start an LLC in Arkansas, You must choose a registered agent . This agent receives legal documents and notices on behalf of your LLC.
This agent can be a person (including yourself or an employee) or a company that offers registered agent services. They need to:
- Offer registered agent services if they’re a company.
- Maintain an address in Arkansas.
- Be available on-site during regular business operations to accept documents.
Step 3: File an Articles of Organization
The certificate of organization officially establishes your LLC by providing basic information.
To register your Arkansas LLC, prepare and file the certificate with the Arkansas Secretary of State, which involves completing a simple online form or sending it by mail. You’ll typically need:
- LLC’s name and address
- Registered agent’s name and address
- Management structure: managers or members?
- Signature of the LLC founder
The filing fee is $45 when completed online or $50 when using paper copies. After filing, the Secretary of State reviews the certificate. If approved, your LLC becomes a legal entity.
Step 4: Received a Certificate From the State
Once the LLC’s formation documents are filed and approved, the state will provide a certificate confirming its formal existence. This certificate enables the LLC to obtain an Employer Identification Number (EIN), business licenses, and a bank account.
Step 5: Create an Operating Agreement
An operating agreement outlines how your LLC operates, though it’s not mandatory in Arkansas. Having one is beneficial for dispute resolution and legal clarity.
The operating agreement can cover different aspects such as the LLC’s name and address, duration, registered agent details, business purpose, member contributions, profit distribution, membership changes, management structure, and liability provisions.
Step 6: Get an Employer Identification Number
Employer Identification Number is a unique code assigned to businesses by the IRS. While not mandatory, obtaining an EIN is essential for various purposes, including hiring employees and opening a bank account.
LLC State Guides
FAQs
How much does it cost to start an Arkansas LLC?
For forming an Arkansas LLC, there is a state fee of $45 ($50 if submitted by mail). Additionally, there is an annual tax report filing fee of $150. Depending on your needs, additional costs might be involved, such as filing a DBA or hiring a professional registered agent.
What is the taxation process for an LLC in Arkansas?
LLCs in Arkansas are taxed as pass-through entities, meaning the company’s income passes through to its members, who report it on their tax returns. They are subject to the federal self-employment tax rate of 15.3%. All Arkansas LLCs must also pay a $150 state Franchise Tax annually.
What is the deadline for filing the Arkansas Annual Franchise Report?
Arkansas LLCs must submit an annual Franchise Tax Report, due by May 1st annually, with a filing fee of $150. Failure to file on time results in a $25 late fee and an additional 10% interest each year until the late fee exceeds the original amount.
What is the processing time for obtaining an Arkansas LLC?
If you file you online, the processing time is typically 2-3 business days. However, if you submit your filing by mail, establishing your LLC may take up to 4 weeks.
