701 South Street, STE 100, Mountain Home, AR, 72653 | (501) 588-1720
by Arkansas Registered Agent LLC

How to Start an LLC in Arkansas

The first step to forming an LLC in Arkansas is filing the Articles of Organization for Limited Liability Company with the Business and Commercial Services Division of the Arkansas Secretary of State.

Once the document is filed, the next steps include drafting and finalizing an operating agreement; obtaining an EIN; applying for any business licenses or permits; and filing an annual franchise tax report.

 

Arkansas Registered Agent LLC
LLC Formation Package Includes:

 

  • Secure & Safe Client Account
  • One Year of Registered Agent Service
  • Annual Report Reminders
  • Official Documents Emailed Directly to You
  • Fair & Transparent Pricing

 

Service Fee
Arkansas Filing Fee $45
Our Formation Service Fee $100
One Year Registered Agent Service $49
Total $194

Here’s How Our Process Works:

  1. You sign up today and let our team of business experts prepare and submit the Articles of Organization to the Arkansas Secretary of State Business & Commercial Division.
  2. Next, you sign into your client account to receive real time notifications, view or add any Arkansas filings, and keep up to date on the status of your LLC formation.
  3. In less than one business day, your LLC will be formed with the Business and Commercial Services Division.
  4. Your official business documentation will be emailed and mailed directly to you.
  5. We will keep PDF copies of all documents in your client account for you to access at any time.
  6. We send your annual franchise report reminders so you don’t miss the May 1st deadline.

 



 

Arkansas LLC Advantages

Security
An LLC offers the same asset protection as corporations without all of the fancy formalities. When you form an LLC, the debts and obligations of the company are separated from your personal assets.

Privacy
When you form an LLC in Arkansas, you are not required to provide any personal information. This means anyone searching through public records will not have access to your name or address.

Simplicity
LLCs do not require shareholder meetings, a board of directors, or corporate officers. Financial and operational decisions can be made conveniently and without all the hassle of a corporation.



 

DO-IT-YOURSELF GUIDE
TO FORMING AN LLC
IN ARKANSAS

Here’s a brief overview of the LLC formation process in Arkansas.

Completing the Articles of Organization

Completing the Articles of Organization (sometimes referred to as “Form LL-01”) is a five step process. A PDF of the Articles of Organization is available in the “Forms/Fees” section of the Arkansas Secretary of State Business and Commercial Services website for those who want to file the document via mail or in-person. You can complete the entire process online by visiting the Arkansas Secretary of State Online Corporate Filing System website.

    1. Choose a Name
      All LLCs formed in Arkansas must have a name that is distinguisable from any other business entity currently on file with the Business and Commercial Division. To check and see if the name you want is available, you can search the Arkansas Business Database.In addition to being unique, your LLC name must include one of the following words or abbreviations (with or without punctuation):

      • Limited Liability Company or L.L.C.
      • Limited Company or L.C.

      If your LLC will be performing any professional services (i.e. legal services, engineering services, dentistry, accounting) are are required to form a professional limited liability company (PLLC) and maintain current licenses and authorization to offer processional services. If you company performs professional medical services, you must provide a copy of your medical certification to the Arkansas Business and Commercial Services Division.

 

    1. Choose a Registered Agent
      Once you have chosen a unique name for your company, the next step is choosing a registered agent. A registered agent is a third party individual or entity that the founding members of the LLC choose to receive legal correspondence on behalf of the company. Legal correspondence includes legal service of profess and annual report reminders.A registered agent listed on the Articles of Organization for an Arkansas LLC must have a physical street address in Arkansas. A PO box address does not count.If you want, you can serve as your own registered agent, but there are some drawbacks. For example, you will be required to list your personal information on the Articles of Incorporation which–once the document is filed–will be public record.

      Arkansas Registered Agent LLC can help with this problem. For $49, we provide registered agent service for 365 days (that’s one entire year!). We list our address as the principal place of business and the address of the registered agent, so you can keep yours private.

 

    1. Decide on the Managerial Structure of Your LLC
      You are required to provide information regarding whether or not the management of the LLC is vested in a manager or manager. If you do not provide any information in this section, then it is assumed that your LLC is member-managed.A member-managed LLC vests all decision-making power equally in the members of the LLC (unless otherwise outlined in the operating agreement). This means that the members will have the power to vote on financial, operational, and structural decisions regarding the LLC.An LLC can have one or more members. The process to become a member of an LLC is typically outlined in the operating agreement. If not information is provided, then becoming a member requires the consent of all existing members. Being a member of an LLC does not mean the individual or entity is obligated to contribute to the LLC.

      A manager-managed LLC is managed by an individual manager or group of managers. A manager of an LLC is not required to be a member of the LLC, though being a member does not restrict the individual from being a manager. If the LLC is managed by a group of managers, decisions will be made by majority vote, unless otherwise outlined in the operating agreement.

 

    1. Sign the Articles of Organization

The Articles of Organization require a signature of at least one person forming the company. This person is not required to be a member or manager of the LLC. Also, by signing the Articles of Organization, they are not obligated to make a contribution to the LLC, and they are not entitled to any interest in the LLC.

 

    1. Complete the Limited Liability Company Franchise Tax Form
      The second page of the Articles of Organization is titled “Limited Liability Company Franchise Tax.” To form an LLC in Arkansas, you are required to complete this form (typed of printed). This form ensures that your company will be sent its annual franchise tax reporting form.

 

You are required to provide name of the LLC and contact information (including an address, telephone number, and email address) for a contact person. You are permitted to list the information of your registered agent to keep your information private.

Filing the Articles of Organization

Once you have completed the Articles of Organization, you are required to file this document with the Arkansas Secretary of State. You can file this document online, by mail, or in-person. The fee to file this document is $50. A comprehensive list of Arkansas State filing fess is available online.

Online
To file your Articles or Organization online, visit the Arkansas Secretary of State Corporations Online Filing System website. Filings submitted online by 3:00 PM CST will be recorded same-day. Any filings submitted after 3:00 PM CST will be recorded the next business day.

When you file the Articles of Organization online, you will be prompted to enter the same information found on the Articles of Organization into an online form. This information will be submitted directly to the Arkansas Secretary of State.

The online form will prompt you to select a Filing Act. Select the default “1003 of 1993.” This is the filing act that pertains to forming an LLC in Arkansas.

You can pay the $50 filing fee online with any major credit card. Original filings are returned by mail to the submitter.

Mail
To submit your completed Articles of Organization by mail, send the document and a check or money order to:

Suite 250, Victory Building
1401 W. Capitol Ave #250
Little Rock, AR 72201

 

In-person
To file your completed Articles of Organization in person, go to the Business and Commercial Services Division of the Arkansas Secretary of State office located at:

Suite 250, Victory Building
1401 West Capitol Avenue
Little Rock, AR 72201

The Business and Commercial Services Division is open from 8:00 AM to 5:00 PM, Monday through Friday.

If you are filing in person, you can pay with cash, card, check, or money-order. Documents will be processed immediately.

Submission Type Processing Time Acceptable Payment Forms Submission Information
Mail 1-3 Business Days Check or Money Order Suite 250, Victory Building
1401 West Capitol Avenue
Little Rock, AR 72201
In-person Immediate Check, Money Order, Cash, or Card Suite 250, Victory Building
1401 West Capitol Avenue
Little Rock, AR 72201
Electronic < 1 Day Card, or Online Payment Account Arkansas Secretary of State Corporation Online Filing System website

 

Establishing and Maintaining Your LLC

Once the Articles of Organization are completed and filed, you can begin establishing and maintaining your LLC. The next steps include drafting and finalizing an operating agreement; obtaining and EIN; applying for any business licenses or permits; and filing an annual report.

Draft and Finalize an Operating Agreement
An operating agreement for your LLC is not required by Arkansas Law. However, it is highly recommended that you have one. An operating agreement outlines important information regarding your LLC including, but not limited to, how people become members of the LLC, the duties and responsibilities of members and/or managers, and what should happen if a member dies or gets divorced.

If your LLC does not have an operating agreement and end up in court, the court will rule according to the Arkansas LLC statutes. This may not be in the best interest of your company. To make sure you are prepare for any and all circumstances, you should draft and finalize an operating agreement.

Apply for Any Business Licenses and Permits
Some businesses and professions require licenses or permits to operate in different jurisdictions and at different levels of government. Before you proceed with your business, you should check with professional alliances that apply to your company and make sure you are in compliance with the law.

Obtain an EIN
An Employer Identification Number (EIN) is a unique nine-digit number that is issued by the Internal Revenue Service (IRS) for federal tax purposes. All LLCs formed in Arkansas are required to obtain this number to file their annual franchise tax report. Getting an EIN is simple, easy, and can be complete online. For more information, or to apply for an EIN, visit the IRS website.

File an Annual Report
You are required to file an Annual LLC Franchise Tax Report for your LLC every year. A PDF of this form can be downloaded from the Arkansas Secretary of State Business and Commercial Services website.

The annual LLC Franchise Tax Report requires the following information:

  • Business Name and Address (as it appears in the Articles of Organization)
  • Federal Tax ID# (also known as an “EIN”)
  • Registered Agent Information
  • Principle Office Information
  • LLC Management Information
  • Signature of an LLC member/manager

All LLCs are required to pay $150 annually. If you do not file this report on or before May 1, the LLC will be subject to penalty and itnerest. In Arkansas, you cannot request an extension to file this report. There are no exceptions to this rule.

The Annual LLC Franchise Tax report can be filed online at the Arkansas Secretary of State Franchise Tax Filing System. Or you can mail the report to:

Business and Commercial Services
P.O. Box 8014
Little Rock, Arkansas 72203

 



 

FREQUENTLY ASKED QUESTIONS
ABOUT FORMING AN LLC
IN ARKANSAS

 

How can I contact the Arkansas Secretary of State?

You can contact the Arkansas Secretary of State by phone or email:

Phone: (501) 682-3409
Toll-free: 888-233-0325
Email: corprequest@sos.arkansas.org

How will my Arkansas LLC be taxed?

All LLCs formed in Arkansas are subject toe Arkansas Franchise Tax. The Arkansas franchise tax is $150 and is paid yearly with the Annual Franchise Tax report, due on the first day of May.

You can opt to have your LLC taxed as a pass-through-entity or a corporation. By default your LLC will be taxed like a partnership–which is a pass-through entity. This means that any profit your company makes will be passed through onto the members of the LLC and will then be taxed as personal income. You can elect to have your LLC taxed as an S-corp, which is also a tax classification that acts as a pass-through entity as well.

Corporate profit is subjected to what is referred to as “double taxation”–meaning that profit is first taxed at the corporate level, and then again at the personal level.

What is the difference between an Arkansas LLC and an Arkansas corporation?

Basically, it comes down to formalities. Both LLC and corporate status provide limited liability to members or shareholders. However, corporations have additional rules and regulations that an LLC doesn’t.

Corporations, as the oldest type of legal business entity, follow tried and true regulations. Because they are the oldest legal entity, the courts have had plenty of time to create ample case law regarding corporate law. LLCs are the newest form of legal business entity and have not had as much time to establish the same kind of business reputation that corporations have.

That being said, an LLC does not have to elect a board of directors, hold shareholder meetings, or keep meeting minutes. There is much more decision-making flexibility and many entrepreneurs opt for the convenience of an LLC to receive the amount of asset protection that a corporation provides.

Ultimately, it is up to you to choose the best business entity for your company and your business goals. It’s always a good idea to speak with business accountants or attorneys for more information regarding legal business entites and taxation. For more information on how to incorporate a business in Arkansas, visit our Arkansas Corporation Page.

Do I need to live in Arkansas to form an LLC there?

No. You do not need to live in Arkansas for form an Arkansas LLC. However, you will need a registered agent with a physical address in Arkansas to list on the Articles of organization. (Psst… Arkansas Registered Agent LLC does this.)



 

 

Start Your Arkansas LLC Today

Arkansas Registered Agent LLC offers a fast and efficient LLC formation package. Form your LLC for $194 today.

 


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