4. Create an operating agreement

Although operating agreements are not required by Arkansas state law, you shouldn’t form an LLC without one. An operating agreement is kind of like an internal business plan, including detailed information about how the LLC will be managed, taxed, and more. 

It typically outlines how internal disputes will be handled, for instance, profit distribution, financial decisions, or management succession. It also acts as another layer of protection from personal liability and offers clarity around the rules of operation, management, transfer of ownership, and dissolution process. For example, dissolving a business that doesn’t have an operating agreement form in place means leaving the process up to state law.

An LLC operating agreement should include the following information:

• Basic business information, including the name, purpose, duration, and principal address
• Registered agent’s name and address
• Members’ names, addresses, titles, and contributions
• How profits will be distributed
• How the LLC will be managed, including members’ duties, daily operations, voting rights, or guidelines for meetings
• Tax structure
• Procedures for acquiring new members, transferring ownership, and dissolving the company
• Indemnification and liability clauses

5. Obtain an EIN and open a business bank account

An employer identification number (EIN) isn’t a requirement for all LLCs, but it is for those that are taxed as corporations, multi-member LLCs, and any business that plans on hiring employees. 

Regardless of these factors, getting an EIN is still a good practice for many LLCs because it helps to protect sensitive information. You can use your EIN on all legal and financial documentation instead of supplying your personal Social Security Number. EINs also help your business:

• Appear more credible
• Apply for business permits and licenses
• Manage state and federal taxes
• Open a business bank account

To apply for your nine-digit EIN issued by the Internal Revenue Service, visit the agency’s website, which has instructions for applying online, by fax, or by mail. Alternatively, you can also obtain an EIN with LegalZoom.

Opening a business bank account isn’t technically required to start your Arkansas LLC, but it does help keep your personal and business finances separate, sets up your business for growth, and makes it easier to keep track of your business’s expenses and income. You’ll find that many financial institutions ask for the following information in order to open a business bank account: 

• EIN
• Proof of identification—such as a passport or driver’s license—for account holders
• Formation documents, like a copy of your Arkansas certificate of organization or a business license
• Details about your LLC, including member information

6. Register for state taxes and business licenses

Next, register your business with the Arkansas Department of Finance and Administration through its online portal, Arkansas Taxpayer Access Point (ATAP), which is where you’ll file returns and pay state taxes. Registering on ATAP is a requirement for all LLCs that have employees and/or that sell taxable goods and services. LLCs with employees can also pay unemployment taxes through ATAP, but first they need to register for an employer account number with the Arkansas Division of Workforce Services.

You may also need to secure business licenses or permits with the state or local jurisdiction in which your business operates. Here’s what you might need for your Arkansas LLC: 

• Sales tax permit from the state Department of Finance and Administration, if your LLC sells taxable goods or services.
• General business license from the city and/or county where your LLC is registered or conducts business.
• Professional or occupational license from the relevant agency. You can find more information on the Arkansas Department of Labor and Licensing website.
• Zoning and building permits, depending on the type of business and its location.

Find the business license you need for your LLC with LegalZoom’s business license service, where we take your information and compile a report with links to every permit or license that applies to your business, along with helpful instructions.