Arkansas LLC Basics & Helpful Information
General Overview of the Arkansas LLC
This article is meant to be a general overview of the LLC formation process and other basic issues related to Arkansas LLCs.
Initial Filing Fees
The initial filing fee for an LLC in Arkansas (i.e. the filing fee for the Articles of Organization) is $45 if filed online or $50 if you file paper version of the Articles of Organization.
Filing Time Frame
A new Arkansas LLC is officially created when the Secretary of State has accepted the Articles of Organization. If completed online before 3pm, and if accepted by the SOS, the new LLC is formed in 1 to 2 days. If mailed the processing time can take up to 2 to 3 weeks.
Annual Compliance & Fees
Arkansas LLCs are required to file information returns with the Internal Revenue Service and Arkansas Department of Finance & Administration.
An Arkansas LLC must file annual franchise tax reports with the Arkansas Secretary of State by May 1st of each year after the LLC is formed in Arkansas. The annual franchise tax rate for an LLC is $150/year.
Learn more about Arkansas Franchise Taxes →
Form an LLC in Arkansas
Use this step-by-step summary to help guide you through the process of forming an Arkansas LLC:
Step 1: Decide on a Business Name
One of the first things a business owner does is select a name. If you are going to create an LLC in Arkansas, you will need to make sure the name is available by first checking with the Arkansas Secretary of State by searching the business name database.
Arkansas business name search →It is also highly recommended that you check the US Patent and Trademark Office to see if someone has a federal trademark of the business name you want (the Arkansas SOS will not check other state’s databases or the federal trademark database). There are companies that can perform a comprehensive trademark search (would include a search of all state databases, federal databases, and thousands of other sources).
An Arkansas LLC must contain the words “Limited Liability Company,” “Limited Company,” or the abbreviation “L.L.C.”, “L.C.,” “LLC,”, or “LC.”. The word “Limited” may be abbreviated as “Ltd.”, and the word “Company” may be “Co”. The name of the LLC must be distinguishable from other names of business entities already on file with the Arkansas Secretary of State. Avoid words that contain the words “bank” or “Insurance” or that may confuse your LLC with any federal or state agency.
Reservation of Name
An available name may be reserved for 120 days by filing an Application for Reservation of Limited Liability Company Name with the Arkansas Secretary of State. The form may be completed and filed online or by mail. The filing fee is $25 if done by mail or $22.50 if done online.
Step 2: Register your LLC with the State
Arkansas Articles of Organization
A new Arkansas LLC is formed when the Articles of Organization are filed and accepted by the Arkansas Secretary of State. The LLC may not conduct business until the Articles have been filed and accepted. The Articles of Organization can be filed online.
The Arkansas Articles of Organization must include (at a minimum):
- Name and address of the LLC
- Principal place of business
- Name and address of the Registered Agent
- Whether the LLC is to be managed by its members or managers
- Name and signature of the Organizer
Arkansas Registered Agent Information
An Arkansas LLC is required to have a registered agent. The registered agent is the “mailbox” for the LLC. He or she is the person or entity designated by the LLC to receive any service of legal action or other official communication on its behalf. The registered agent may or may not be an owner. The registered agent’s address must be a street address in Arkansas, and the agent must be located at that address. A post office box or “mail drop” may not be used as the registered agent address.
Step 3: Create and Sign the LLC’s Governing Document
The governing document for an LLC is called the “company agreement” or sometimes the “operating agreement”. The company agreement is to an LLC like a partnership agreement is to a partnership (or bylaws to a corporation). The company agreement governs the internal operation of the LLC and is typically a private document that is kept in the company book and the principal place of business (it is NOT filed with the state). The company agreement can address many issues, some of the more common concepts found within a company agreement are:
- Limitations on the members liabilities
- The level of consent needed to take various actions (i.e. simple majority required to add new members)
- The percentage of the LLC that each member owns
- How profits and losses are allocated between the members (typically based on ownership percentages)
- Limitations on transferability
- What each member is contributing to the LLC and what happens is such contributions are not made.
- The authority of the members, officers, managers, committees, etc.
- How meeting are conducted
Step 4: Get an EIN
After you form an Arkansas LLC, you can get the EIN. There are a few different ways to get an EIN:
- Apply Online Yourself: The IRS has an online EIN Application you can use to get an EIN. The turn around time on the EIN using this method is only a few minutes.
- Use Form SS-4: You can get an EIN the old fashion way by completing Form SS-4 and mailing or faxing into the IRS. How long does it take to get the EIN this way? According to the IRS: if you mail in Form SS-4, it will take 4-5 weeks to get your EIN. If you fax in Form SS-4 you should have the EIN back in a week if you provide a fax number or 2 weeks if you don’t have a fax number.
- Have a Third-Party Obtain: All of the LLC formation companies have the ability to get the EIN for you. The EIN obtainment charge varies by company, but it is generally between $50 and $100. If you get one of the higher priced packages, they will sometimes throw in the EIN for free.
Step 5: Get Licenses and Permits
After you create your new Arkansas LLC, you’ll need to determine if your business/profession requires any license or permits to conduct business.
Registering a Foreign LLC in Arkansas
If you have a non-Arkansas LLC (aka Foreign LLC) and you are doing business in Arkansas, you may need to register the Foreign LLC in Arkansas. Each state has a different definition of “doing business”. In Arkansas, the kinds of activities that would not constitute “doing business” are outlined in the Arkansas Code Annotated Sec. 4-32-1008.
The filing fee for the Application For Certificate of Registration of Foreign LLC in Arkansas is $270 online or $300 via paper filing.
