How to Form an LLC in Arkansas

Created by FindLaw's team of legal writers and editors.

When you're starting a business, one of the first steps that you'll have to take is selecting a business structure for your company. If you're considering forming an LLC, then you should familiarize yourself with the basic requirements. This article details how to form an LLC in Arkansas and provides a link to forms and links to relevant statutes.

Forms for Arkansas LLC Formation

Creating an Arkansas LLC involves completing and filing formation documents. It's easy to get started on your own by using FindLaw's Arkansas LLC Formation Package.

LLC Attributes

An "LLC" or "limited liability company" is a business structure that provides owners with the tax advantage of "flow-through" taxation found in partnerships while simultaneously protecting them from personal liability from the company's debts and judgments (as with corporations).

Explanation of How to Form an LLC in Arkansas

Because the requirements for forming an LLC vary slightly, you must familiarize yourself with the rules for your chosen state before you begin. See the chart below for an explanation of how to form an LLC in Arkansas.

Statutes

Arkansas Code Title 4. Business and Commercial Law:

  • Section 4-32-103 (LLC name)
  • Section 4-32-104 (name reservation)
  • Section 4-32-106 (business purpose; powers and privileges)
  • Section 4-32-202 (articles of organization)
  • Section 4-32-205 (filing documents)

Name the LLC

Arkansas law requires that the LLC names must:

  • Contain the terms "Limited Liability Company" or "Limited Liability Co."; or
  • The approved abbreviations "L.L.C."; "LLC", "L.C.", "LC", "LLC", or "Ltd," for "Limited" and "Co" for "Company."
  • Be different from the names of existing businesses that are already registered.

You can check the Arkansas Secretary of State Business Name Database for name conflicts.

You may pay a fee and reserve a name (for 120 days) by filing an application online or by postal mail.

Select a Registered Agent

Every Arkansas LLC must select a registered agent who agrees to accept legal documents if the company is sued. The agent may be:

  • An individual who's a full-time resident of Arkansas; or
  • A business entity registered with the Arkansas Secretary of State.


File Articles of Organization

You must file the Articles of Organization with the Arkansas Secretary of State.

The filing (which includes fees) must include the following information:

  • The LLC's name and address;
  • The registered office's name and address;
  • Whether the LLC is member-managed; and
  • Whether the LLC's duration is perpetual or for a specified period.

You may file:

  • Online;
  • In-person; or
  • Via regular mail.

If you don't file online, the Secretary of State Business and Commercial Services Division website provides instructions for filing in-person or by mail.

Create an Operating Agreement

Arkansas doesn't require them, but it's advisable to create an operating agreement.

Comply with Tax and Regulatory Requirements and Determine Necessary Business Licenses/Permits

Department of Finance and Administration

If your company sells goods and collects sales tax, or has employees, you will likely have to register with the Arkansas Department of Finance and Administration (DFA).

You may also have to obtain local and state business licenses, depending on the type of business and the location.

IRS Employer Identification Number

If your LLC has more than one member, then you must apply for an Employer Identification Number (EIN).

Foreign LLCs

All LLCs organized outside of the state must register with The Arkansas Secretary of State to do business in the state. All foreign LLCs must appoint a registered agent who's physically located in Arkansas for process of service.

Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.

Annual State Tax Obligations

All Arkansas LLCs and foreign LLCs must pay a minimum $150 tax to the Arkansas Secretary of State every year and file an annual franchise tax report. Both the payment and the franchise report must be completed each year by May 1 and late reports will result in penalties. You may file online or download the forms from the Secretary of State website.

How to Form an LLC in Arkansas: Related Resources

Questions About How to Form an LLC in Arkansas? Contact a Lawyer

If you're preparing to form your Arkansas LLC, then you can likely get by on your own after getting the right forms. However, if you have specific formation questions or have a complex issue, then you should seek legal help. Contact an experienced Arkansas attorney today to learn more.

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