Arkansas LLC – How to Form an LLC in Arkansas

Form an LLC in Arkansas in just a few steps. Learn how to get an 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.

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.

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).

Search

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.”

AC HTML4-32 -103

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

http://www.dfa.arkansas.gov/

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:
  • Files must be filed by a member, manager, or corporate official.

 

Arkansas Related Posts

Get a Business License in Arkansas

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LLC Name Search in Arkansas

Best LLC Service in Arkansas

Our 2023 List of the Best LLC Services for Any State

If you need to form a limited liability company in any of the 50 states, visit our page where we list the 12 best LLC formation services for 2023. Any of these top services are good choices but we continue to recommend ZenBusiness, Northwest Registered Agent, and Incfile.  

References

LLC Formation + Registered Agent Service = $225 $39   Northwest $39 Discount
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