Arkansas LLC – How to Form an LLC in Arkansas
Form an LLC in Arkansas in just a few steps. Learn how to get an Arkansas LLC name, registered agent, Certificate of Organization, operating agreement, and EIN.
This guide for setting up an LLC in Arkansas provides detailed instructions on filing documents, obtaining tax IDs, and setting up company records.
If you want to use an LLC service, visit our list of the best LLC services in Arkansas.
Forming an LLC in Arkansas with Just a Few Steps
LLC Arkansas – To form an Arkansas LLC, you’ll need to file your Certificate of Organization with the Arkansas Secretary of State. You can apply online, by mail, or in person for $50. The Certificate of Organization is the legal document that officially creates your Arkansas limited liability company.
Arkansas LLC Overview
The most used business structure, LLCs, are very affordable and allow owners to be flexible. Legally forming your LLC will establish your business, limit personal liability, give you tax flexibility, and create a legal entity. The steps that follow will assist you in this process.
This page will provide you with all the necessary steps to do an Arkansas entity name search, draft an Arkansas LLC operating agreement, and answer questions like, can I be my own registered agent in Arkansas? and how long does it take to get an Arkansas LLC? and ensure your Arkansas LLC is properly formed.
Arkansas Business Resources |
Step-by-Step Arkansas LLC Guide
Step 1. Check Name Availability
Your LLC’s legal name must not conflict with any other registered names. A name search can help you find out if your name is available.
| Name Search | Arkansas Secretary-Business and Commercial Services Division (BCS). |
| Name Reservation | Optional |
| Suffix: | The name of every limited liability company, as stated in its articles of association, must include the words “Limited Liability Company,” or “Limited Company”, and the abbreviations L.L.C.,” L.C.,” L.C,” L.C,” L.C,” L.C.” or L.L.C. The word “Limited”, which can be abbreviated by “Ltd,” and the word, “Company”, can be abbreviated by “Co.” |
To learn more about searching for an Arkansas LLC name, visit our guide.
Step 2. Nominate an Arkansas Registered Agent
Before you register to create your Arkansas LLC LLC, you’ll need to identify your Arkansas registered administrator. Registered agents are the business’s legal appointee for receiving notices of lawsuits and other legal/government notices.
The state law requires that every LLC has a registered representative. Arkansas Secretary-Business and Commercial Services Division (BCS), will identify the registered agent.
To learn more about Arkansas registered agents, visit our guide.
Step 3. Arkansas Certificate of Formation
Fill out the articles of incorporation to establish your limited liability company.
| Agency: | Arkansas Secretary-Business and Commercial Services Division (BCS). |
| Form: | LL-01 : Articles of Organization Limited Liability Co. |
| Filing Method | online, mail or offline |
| Agency Fee | $50 paper. $45 online. |
| Turnaround: | ~2-3 business days |
| Law: | Arkansas Code- Title 4 Business and Commercial Law |
Step 4. Establish Company Records
Your LLC must maintain correct and complete books, records, and financial statements. Your LLC’s original articles of organization will be the first document you keep. Your LLC will produce other official records like:
- Minutes of the meeting
- Operating Agreement
- EIN verification letter
- Amendments and other filings of the LLC throughout its life
Step 5. Create an Arkansas Operating Agreement
The Operating Statement is the governing documentation for the LLC. It specifies the legalities of the LLC’s operation, such as the holding of an annual meeting. You will read and then adopt the agreement during your organizational meeting. LLC services can provide assistance with creating an LLC operating agreement. To learn more about the best LLC services in Arkansas, visit our guide.
Step 6. Hold the Organizational Meeting
The Organizational Meeting is where the LLC’s members first meet. In order to hold this meeting, you’ll need your operating agreements and your articles of incorporation. Keep the minutes of the meeting.
Step 7. Get a Federal Employee Identification Number (EIN)
An EIN will be required if an LLC has more then one member or intends on hiring employees. An EIN is required in order to open bank accounts.
| Agency: | Internal Revenue Service |
| Form: | IRS form SS-4 |
| Filing Method | Mail, phone and fax. online. |
| IRS fee | $0 |
| Turnaround: | You can get your order immediately online or by calling. By fax, it takes 4 business working days. 4-5 weeks by postal mail |
| Notes: | The IRS website cannot be accessed outside of certain hours. Before closing your session you should print your EIN. You can find additional guidance at IRS Publi 1635: Understanding the EIN. |
Arkansas State Tax Identification Nos/Accounts
Arkansas offers a state-wide tax registration application.
- Send an email to:
- Arkansas Department of Finance and Administration
- Form:
form AR-1R : Combined Business Tax Registry Form- Instructions:
Instructions on Form AR-1R- Guidance:
Arkansas A Guide to Starting a New Business. An educational brochure for Arkansas Taxpayers- Filing Method
- Mail or in person
- Fee:
- $0. $50 if you apply for a Gross Reception (Sales tax) Permit.
- Notes:
- Apply at the latest two weeks before any taxable activity commences. Do not submit any more than 60-days before the official opening.
Consider Electing C-Corp and C-Corp Taxation
Your LLC is automatically subject to passthrough taxation. Most LLCs do not change this tax classification. Some LLCs are eligible to elect S-Corporation and C-Corp tax treatment.
S-Corp treatment is an option that can help owners-employees making more than 75,000 per calendar year to lower their self-employment taxes.
C-Corps face double taxation. First, the corporation pays income taxes and then the members pay distribution taxes. C-Corps can offer lower tax rates to retained earnings.
How to get a Business License & Permit
It is necessary to obtain the required licenses and permits in order to run your business legally. The Small Business Administration Business License & Permit lookup tool makes it easy to navigate the large number of state and federal requirements.
Arkansas Business License
NOT REQUIRED
Arkansas does NOT require licensure as a general business license.
Arkansas does NOT have a general business license at the state level. However, licenses that are required locally are frequently required.
To Maintain Your LLC, You Need to Continue Ongoing Filings
You are required by law to file your federal and state taxes returns.
Many states require business entities to file an Annual Report for good standing with the secretary.
Arkansas Corporation Annual Report Requirements:
| Agency: | Arkansas Secretary-Business and Commercial Services Division (BCS). |
| Filing Method | |
| Agency Fee | With outstanding stock:.3% capital stock; $150 minimum Without stock: $300 +$5 filing fee online |
| Due: | Annually, May 1. |
| Law: | A.C.A. SS 26-54-54-104 |
| Penalties: | $25 each day plus interest. The penalty cannot exceed twice the original tax due. |
| Notes: |
|
Arkansas Related Posts
Get a Business License in Arkansas
How to Start a Nonprofit in Arkansas
Brian Wilson is the content manager and founder of LLC Radar.
Brian grew up in North Texas, just outside of Dallas, and has a bachelor’s degree in business journalism from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications.
Brian resides in Plano, Texas and he can be reached by email: info@llcradar.com
Phone: 972-776-4050
LLC Formation Guides