If you are having trouble deciding what kind of business entity you would like to form in the state of Arkansas, then you’ve come to the right place. Right now, we want to talk about starting an LLC in Arkansas. For those who don’t know, limited liability companies are a specific form of business entity that you can form in the United States, which includes the state of Arkansas.

There are many different reasons why you might choose to form an LLC in Arkansas. First and foremost, starting a limited liability company, as the name implies, provides you with a certain degree of legal and financial liability protection in the event that something goes wrong.

There are also other advantages to starting an LLC, including flexible management structures and taxation options. However, we’re not really here to talk about the benefits of an LLC today, but rather how to start one, specifically in Arkansas.

Today, we’re going to provide you with a step-by-step guide on how to start an LLC in Arkansas. As you’ll see, it’s really not that difficult or time consuming, but you do need to be sure to follow all of the steps in great detail in order for this process to be successful.

How to start an LLC in Arkansas: Step-by-Step

There are just a few steps that you need to follow to start an LLC in Arkansas, and they’re all listed below.

1. Choose a Name for Your LLC in Arkansas

The first step in starting a limited liability company in Arkansas is to choose a name for your business. This is required before you can proceed with the process. There are a few certain naming requirements that you’ll need to follow when choosing a name for your Arkansas LLC.

First and foremost, the business name has to include the words limited liability company. It may alternatively include L.L.C or LLC. 

Second, there are also restricted words that may require additional licensing and paperwork, such as credit union, lawyer, attorney, bank, and others. There are also certain words that your LLC’s name cannot include, such as CIA, state department, treasury, FBI, and others.

If you need help to come up with a name, you san use our free business name generator. It will provide you unlimited number of ideas according to your industry.

Your Name Can’t Be in Use 

Besides those requirements, the name of your LLC must also be easily distinguishable from other existing businesses in the state. In other words, you can’t choose a name that is already in use. The name of your LLC has to be different from any other business in the state. To see what business name availability in the state of Arkansas is like, follow this link.

The Domain Name 

Although not a legal requirement by any means, something else you have to consider when choosing a name for your Arkansas LLC is if the URL or domain name is also available. 

The simple fact is that in today’s world, your business absolutely needs to have a website. A rule of thumb is that the business name should always match the website name. Therefore, if the domain name for your business is not available, then you’ll likely want to choose something else.

To help you come up with a domain name, you san use our free domain name generator. Here, at BNGai, we not only provide you with unlimited results, but we do an instant domain check availability too.

Reserve Your Name 

The only other thing to keep in mind here is that it is technically possible to reserve your name for up to 120 days, as well as by paying a small fee. This is ideal if you’ve already chosen a name, but you’re not quite ready to file the paperwork just yet.

2. Appoint a Registered Agent for Your LLC in Arkansas

The next step in the process of creating an LLC in the state of Arkansas is to choose or appoint a registered agent. For those who don’t know what this is, a registered agent is an entity or a person that is authorized to receive a service of process and many other types of official legal documents on behalf of your limited liability company.

You can choose to be your own registered agent, you can use an employee, you can appoint an outside registered agent, or you can even hire an entity that provides registered agent services.

However, keep in mind that if you choose an entity, they must be officially licensed to provide such services. You can’t choose just any business. Furthermore, the chosen registered agent must also have a physical address in the state of Arkansas, and they must be available on site during regular business hours to accept documents.

3. File the Articles of Organization

The next step in forming an LLC in the state of Arkansas is to visit the Arkansas Secretary of State website and fill out the forms labeled articles of organization. You can consider this the legal paperwork that you need to fill out in order to be officially approved and recognized as a limited liability company in Arkansas.

Although it might sound like a big and daunting task, as well as an expensive one, this really isn’t the case. All you have to do is fill out a very simple online form and pay a small fee. You can also print this form out and send it in to the Arkansas Secretary of State by posted mail.

When filling out the articles of organization, there are a few different pieces of information that you will most likely have to include, and these include the following.

  • The address and name of your limited liability company.
  • The name and address of the registered agent that you have appointed.
  • The management structure of the limited liability company.
  • You will also need to sign the certificate.

Once you have filled out the articles of organization properly and filed them with the Arkansas Secretary of State, you will get a certificate. It shouldn’t take more than a few days or weeks at the most for you to receive the certificate.

This is the official piece of paperwork that you will receive which confirms that you are now an official limited liability company. This certificate will also allow you to obtain other business licenses, open a business bank account, and to obtain your EIN or employer identification number.

4. Create an LLC Operating Agreement

Although the state of Arkansas doesn’t officially require limited liability companies or other such businesses to create an official operating agreement, it is still a good idea to have one.

The reason for this is because an official operating agreement allows state courts to make determinations based on what is best for the LLC and its members.

If you don’t have an operating agreement, Arkansas courts will make decisions based on state law, which may not necessarily be in the best interest of the LLC for its members. There are also other issues that having a good operating agreement can help prevent.

When creating an operating agreement, there are many different pieces of information that you may want to include, which include the following.

  • Liability and indemnification clauses.
  • Procedures for admitting new members.
  • Procedures for outgoing members.
  • The management structure of the limited liability company.
  • The name of the limited liability company.
  • The main address.
  • The duration of the limited liability company.
  • The address and name of the registered agent.
  • Any relevant information regarding the articles of organization.
  • How losses and profits will be divided.
  • Who the different members are and what their contributions are.
  • The purpose of the limited liability company.

5. Obtain the EIN

The final step in officially starting your limited liability company in Arkansas is to obtain your employer identification number. The employer identification number, otherwise known as the EIN, is a nine digit number assigned by the Internal Revenue Service.

This is designed for both taxation and identification purposes. In other words, for your limited liability company to be legal, you have to pay taxes on it, and in order to pay taxes on it, you need to have an EIN.

You can go online through the IRS or through mail to obtain your EIN. Having an EIN will also allow you to hire employees, open a business bank account, and get a business loan.

Additional Steps

You have now officially registered your limited liability company in Arkansas, but there are still other things that you may have to do to remain compliant.

For instance, and in the state of Arkansas, all limited liability companies must pay a minimum $150 tax to the Arkansas Secretary of State. You must also file an annual franchise tax report with the Arkansas Secretary of State each year by the 1st of May. That $150 tax payment is also due at this time.

You may then also want to consider opening a business bank account, getting a business credit card, and purchasing insurance. Another good idea is to protect your name and logo with an official trademark. Of course, depending on the type of business you are running, you may also need a variety of other licenses and permits to remain legal and compliant.

Conclusion

If you follow all of the steps as listed above, including choosing a name, appointing a registered agent, filling your articles of organization, and more, then you should have absolutely no problems starting a limited liability company in Arkansas. 

Remember that limited liability companies provide owners with a certain amount of legal and financial liability protection, which is exactly why this type of business structure is so popular.

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The Comprehensive Guide to Business Name Registration
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