How to Start an LLC in Arkansas Step-by-Step Guide
Starting an Arkansas LLC, step-by-step
Here are the five steps to establishing an LLC in Arkansas:
- Choose a Unique name for the LLC
- Appoint a Registered Agent
- File the Articles of organization
- Create an Operating Agreement
- Get an EIN (Employer Identification Number)
If you want to form your LLC yourself, follow our comprehensive guide below at no cost.
For further details on LLC expenses, Explore the specifics of LLC costs in Arkansas.
See "How Long Does It Take to Form an LLC in Arkansas" to find out how long it will take to get your LLC approved and to make sure there are no delays.
How much does it cost to start an LLC in Arkansas?
It costs $45 to start an LLC in Alaska, with an additional $150 due every two years.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
Here are the steps to forming an LLC in Arkansas
1. Search for your Limited Liability Company (LLC) Name
First, search your business name. Entity Search tool to ensure it's unique and not already in use.
This is necessary because two businesses in the state cannot share the same name.
Second, check domain availability for an online presence Select a name that is memorable to the customer and best suited for the brand.
We'll explore the specifics of naming an LLC in Arkansas in greater detail.
How do I check if my desired LLC name is available?
You can check the availability of your desired LLC name by searching the Arkansas Secretary of State's online business name.
What are the naming requirements for an Arkansas LLC?
The name must include "Limited Liability Company," "LLC," or "L.L.C." It must be distinguishable from other business names registered in Arkansas and should not contain restricted words without approval.
Can I reserve a name for my LLC?
Yes, you can reserve a name for up to 120 days by filing a Name Reservation application with a $25 cost.
2. Choose an Arkansas Registered Agent
The next step is to select the Arkansas Registered Agent.
Your LLC's registered agent in Arkansas may be an individual or group designated to receive official notices and legal communications on behalf of your LLC. They must reside in the state at their physical address in order to perform this duty effectively.
Exclusive Offer!
Hire a Northwest Registered Agent to form your LLC for just $39 plus the state fee and receive a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
Who is eligible to serve as an LLC Registered Agent?
Your LLC's registered agent can be either yourself.
- A trusted friend or family member
- A professional Registered Agent Service
- You
They must have a physical address in Arkansas, as PO Boxes are strictly unacceptable.
The Registered Agent's details are available to the public in state records.
If you prioritize privacy or lack a physical Arkansas address, a Registered Agent Service could be beneficial.
What is a Registered Agent?
A Registered Agent is a person or entity designated to receive legal documents and official government communications on behalf of the LLC.
Who can be a Registered Agent in Arkansas?
The Registered Agent can be an individual resident of Arkansas or a business entity authorized to do business in Arkansas. The agent must have a physical street address in Arkansas (no P.O. boxes).
Can I act as my Registered Agent?
Yes, if you meet the residency and physical address requirements, you can act as your Registered Agent.
3. File Arkansas LLC Articles of Organization
Prepare and submit the Articles of Organization to the Arkansas Arkansas Secretary of State.
Guide for completing the articles. Including details like your name and registered agents.
Filing the Arkansas LLC Articles of Organization costs $45 when submitted online. This is a one-time cost to create your LLC.
If you want to file this yourself, see our step-by-step guide: ?.
How do I file the Articles of Organization?
You can file the Articles of Organization online or by mail with the Arkansas, Business and Professional Licensing. The filing fee is $45.
What information is required in the Articles of Organization?
The Articles of Organization must include the LLC’s name, principal office address, registered agent information, and the names and addresses of the organizers.
How long does it take to process the Articles of Organization?
Processing times can vary. Online filings are typically processed within a few business days, while mail filings may take longer.
4. Create an Arkansas LLC Operating Agreement
An Arkansas LLC Operating Agreement is like a companion document to the Articles of Organization. The Articles create your LLC, while the Operating Agreement explains who owns it.
Banks may require it to open your LLC business bank account, and it is important in court to prove your LLC is running correctly.
That's why we recommend that all LLCs, including Single-Member LLCs, have an Operating Agreement.
Operating Agreement is essential in legal proceedings because it serves as evidence that your LLC operates by proper governance practices, bolstering your defense in court.
An Operating Agreement is an internal document, so you don’t need to file it with the Arkansas Secretary of State or the IRS. Just keep a copy in your business records for your reference.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
What is an Operating Agreement?
An Operating Agreement is a document that outlines the ownership, management structure, and operating procedures of the LLC.
Is an Operating Agreement required in Arkansas?
While not legally required, it is highly recommended to have an Operating Agreement to establish clear rules and prevent disputes.
What should be included in an Operating Agreement?
The Operating Agreement should include details on member roles and responsibilities, voting rights, profit distribution, management structure, and procedures for adding or removing members.
5. Get an EIN
An Arkansas EIN is also called a federal tax ID number or federal employer identification number.
An EIN (Employer Identification Number) is needed for:
- Identifying tax purposes
- Apply for licenses and permits
- To open the business bank accounts
How do I apply for an EIN?
You can apply for an EIN online through the IRS, by mail, or by fax.
How much does an EIN cost?
This is a free service offered by the IRS.
How much time does it take to receive an EIN?
If you apply online through the IRS, you will receive your EIN immediately upon completion of the application.
If you apply by fax, you will usually receive your EIN within 4 business days.
If you apply by mail, it can take about 4-5 weeks to receive your EIN.
Why do I need an EIN for my LLC?
An EIN is required for federal tax purposes, hiring employees, opening a business bank account, and fulfilling other business-related requirements.
How can I obtain an EIN?
For US Citizens or Residents: If you possess an SSN or ITIN, you are eligible to apply for an EIN online. Simply follow these steps: Apply for an EIN online.
For Non-US Residents: You are unable to obtain an EIN online, but you can still acquire one through fax or mail. Follow these steps to get an EIN without an SSN or ITIN.
What Should I Do after the LLC is Approved?
Business bank account for Arkansas LLC
Opening a business bank account for your Arkansas LLC is essential to keep personal and business finances separate. This separation helps maintain accurate financial records, simplifies tax filing, and protects your assets in case of legal issues.
Arkansas Licenses and Permits
Arkansas LLCs may require various licenses and permits depending on their location, industry, and business activities.
Taxes for Arkansas LLC
Arkansas LLCs are subject to several taxes, including federal and state income taxes, sales taxes (if applicable), and payroll taxes if the LLC has employees. Understanding and complying with these tax obligations is crucial to avoiding penalties and maintaining good standing with tax authorities.
Annual Report Requirement
Arkansas LLCs must file an Annual Report each year to the Arkansas Secretary of State. This report updates the state with any changes to the LLC's business details and requires payment of a filing fee. Keeping this report current ensures that your LLC remains in good standing and compliant with state regulations.