LLCs in Arkansas are affordable and easy to form. As with other states, the State of Arkansas has some unique LLC requirements.
Interested parties must register with the Arkansas Secretary of State by filing the necessary forms, paying the necessary fees and meeting all naming and formation requirements.
The specifications required of an Arkansas LLC are:
Registration. File your Articles of Organization with the Secretary of State either online or by mail. The documents should include:
- LLC name and address
- Registered agent name and address
- The type of management the LLC will have—member-managed or manager-managed
- Execution date, if other than the date filed
- Organizer’s name and signature
You will also need to file the LLC franchise tax registration form along with the Articles of Organization. Do not forget to include the LLC name and address as well as the contact person’s name, email address, signature, title, address and phone number.
Forms and fees. LLC registrants are required to file Articles of Organization and the LLC franchise tax registration form with the Secretary of State. Submissions online require a small filing fee, while submissions by mail or in person require a slightly higher filing fee.
Timeline. Processing time is usually between one to two business days. However, in-person filings can be done while you wait.
Naming requirements. LLC naming requirements can be confusing. However, the easiest way to make sure that your LLC name will be approved is to make sure that it is distinguishable from other LLCs and includes specific words required of LLCs. You may opt to have a preferred name checked for availability on the Secretary of State’s website before filing your LLC formation documents.
Formation requirements. To form an LLC, a registrant must first file Articles of Organization and an LLC franchise tax registration form with the Secretary of State. All submissions must be accompanied by the appropriate filing fees, which vary depending on the mode of submission.
An LLC with more than one member is also strongly advised to have a limited liability company operating agreement among its members.
Starting an LLC in Arkansas
Before you begin the registration process for an LLC in Arkansas, it’s important to know what an LLC is and whether or not it is a viable business structure for your company, so be certain to read up on the definition and benefits of an LLC.
Here are some tips to help you put together what you need to begin the registration process with the Secretary of State:
1. Decide on a name for your business. You can choose any name as long as it ends with “Limited Liability Company,” “Limited Company” or any variation of its abbreviations—e.g., LLC, L.L.C., L.C., LC or Ltd. Co.
Names may be reserved by filing a reservation application with the Secretary of State. This may be done online or by submitting Form RN-06, Application for Reservation of Corporate Name. A preferred name may be checked for availability by accessing the Secretary of State’s website.
2. Assign an agent for service of process. This is also referred to as the registered agent or resident agent.
3. Get an Employer Identification Number (EIN) from the IRS. If there are two or more members in your LLC, your company will need to obtain an EIN from the IRS, for tax purposes.
4. Create an operating agreement. Although an Arkansas LLC is not required to have a limited liability company operating agreement, it is wise to have one in place with other members should your LLC have more than one member. The State of Arkansas recognizes limited liability company operating agreements as governing documents.
5. Familiarize yourself with the LLC’s continuing legal obligations, specifically state taxes. All LLCs in Arkansas are required to pay a yearly fee, which may be paid online via credit card or by electronic check.
Other legal obligations may include, but are not limited to, state taxes, annual reports and so on.
Filing an LLC and Taxes
Following are the forms and fees that are required when starting an LLC in Arkansas:
1. Forms. First, you need to complete and submit Articles of Organization and the LLC franchise tax registration form to the Secretary of State, along with the appropriate fees.
2. Limited liability company operating agreement. Although the LLC operating agreement may not be submitted to the Secretary of State, it is a good idea to have one in place for LLCs with more than one member. This should be kept on file at the registered office of the LLC.
3. Taxes. LLCs in Arkansas are treated as corporations, limited liability partnerships or single-member LLCs and are subject to federal income tax classifications. Depending on the type of taxation you opt to have for your LLC, you will have different federal tax responsibilities. As per Arkansas State law, all LLCs are subject to state franchise taxes.
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