How to Start an LLC in Arkansas
1. Name Your Arkansas LLC
Before you can register an LLC, you will need to choose a name for your articles.
Arkansas' naming requirements must be met. These are the most important requirements you should keep in mind.
- Your business name should include the words Limited Liability Company (LLC), LLC, or L.L.C.
- You must have a name that is different from any existing business in the state. To determine if a specific business name is being used, you can search the website of the Secretary of State. This link will show you the Arkansas name availability.
- The name of the business cannot include words that could be used to identify a government agency (e.g. State Department, CIA FBI, Treasury, Treasury, etc.).
- Some words are restricted (bank, lawyer or attorney, credit union, etc.). Additional documentation and licensure paperwork may be required.
- The name of your LLC must be distinct from other businesses.
Arkansas naming guidelines are listed in a complete list.
- Visit the IRS and the small business administration for more information
- URL availability. Even if you think you won't need one, it's likely that you will. You should at least reserve the possibility of purchasing a domain name in the future. It's a good idea not to finalize your LLC name without checking if the URL is still available.
- You can reserve your name. Arkansas allows names to be reserved up to 120 days after payment of the fee and submission of the appropriate form to the state authority.
2. Select Your Agent
Arkansas requires that you appoint an agent registered for your LLC.
A registered agent can be the person or entity that is authorized to receive service of legal documents and notices for your LLC.
You can be a registered agent or an entity offering a registered agent service. These criteria must be met:
- Companies and entities must offer registered agent services.
- Agents must have an Arkansas address.
- The agent must be present on the spot and available during normal business hours to sign documents.
3. Prepare and file articles of organization
The Articles of Organization are a document that establishes your LLC and provides basic information.
To register your Arkansas LLC, prepare Articles of Organization. Although it may sound like a daunting task, it is actually quite simple. All you have to do is fill out an online form and submit it. It can also be sent by mail.
The following information is necessary to prepare your articles:
- Your LLC's address and name
- Your registered agent's name and address.
- Management structure: Will the LLC be managed by managers or members?
- The Articles must be signed by the person who is forming the LLC.
The secretary of state will review your filing once you have filed your Articles. The LLC is legal if the articles are approved.
4. Get a Certificate from the State
After the LLC's documents have been filed and approved by the state, the certificate will be issued by the state.
This certificate will enable the LLC to get an Employer Identification Number, business licenses and a business bank account.
5. Make an Operating Agreement
An operating agreement describes the business model of your LLC.
Arkansas does not require that you have an operating agreement. An operating agreement, which can be easily accessed and written, is useful for many reasons. It helps to settle disputes over financial agreements or other potential litigation. The courts will make decisions based on state law and not necessarily in the best interests of the LLC or its members if there is no agreement.
The following are examples of operating agreements that can be included in an operating agreement:
- Name and address of the principal office of an LLC
- The LLC's duration
- Name and address for the registered agent
- Information about the Articles of Organization
- The purpose of the business
- Members and their contributions
- Profits and losses will be split in the following manner:
- The procedure for admitting new members and outgoing members
- Management of the LLC
- Clauses of indemnification and liability
6. Register for an Employer Identification Number
To identify your LLC for tax purposes, the Internal Revenue Service assigns a nine-digit Employer ID Number (EIN). Your EIN can be obtained online or by mail through the IRS.
An EIN serves the following purposes:
- Filing and managing taxes at both the federal and state levels
- Register for a bank account in your business.
- Employ employees.
Your LLC registration gives you a legal basis to run your business. Keep your LLC in compliance and active on the state's site.
Each year, LLCs must pay $150 in tax to the Arkansas Secretary of State. Each year, the Arkansas Secretary of State must receive an annual franchise tax report. You will also need to pay $150.
This could include filing annual reports and/or making quarterly tax payments. A registered agent is also required for your business.
You can also register your LLC to allow you to do these things:
- To operate your business, you will need permits and licenses. This includes health department permits and zoning permissions. You also need professional licenses, home occupation permits, and licenses for other professions. To conduct sales, some states require a seller’s permit.
- Register your company with the state tax agency.
- Register for a bank account in your business.
- Apply for a Business Credit Card
- Get insurance for your business.
- A trademark can protect your logo and name.
To find more information about best registered agent services on our website.