How to Start an LLC in Arkansas
To start an Arkansas LLC, you’ll need to name your business, pick a registered agent, and file Articles of Organization. It’ll cost $45 up front. After that, you’ll need to take a few more steps to get your LLC ready to do business in The Natural State.
Create an AR LLC in 5 Steps:
Step 1: Name Your Arkansas LLC
When choosing a business name, make sure it isn’t already taken. No two businesses in Arkansas can have the same name. If your chosen business name is the same as or very similar to another business in the state, your LLC’s paperwork will be rejected.
If you’re forward-thinking, you’ll also want to check online to see if your business name is available as a domain name or if it might be federally trademarked.
Once you have a business name that works, make sure it includes an entity identifier like “Limited Liability Company” or “LLC.” This is required by Arkansas law.
Is my LLC name available in Arkansas?
You can find out if your name is available by searching the Arkansas Corporation Entity Search. If you search your desired business name and it appears in the search, that means a business in the state is already using your name and you’ll have to choose something else. If a name similar to your business name comes up, and you’re not sure if it’s different enough, you can call the Arkansas Secretary of State to make sure your business name will work.
Step 2: Choose an Arkansas Registered Agent
Next, you’ll need to appoint an Arkansas registered agent.
A registered agent is an individual or company tasked with receiving important legal mail (like a subpoena or summons) in person on behalf of your business. Your registered agent should quickly and securely forward you any communications. Registered agents are important because they give the state and the legal system a reliable way to get in touch with your business.
Appointing a registered agent is required in Arkansas. At a minimum, your registered agent must:
- Maintain a physical address in the state of Arkansas
- Be present at that address during business hours
- Consent to act as your registered agent and to list their address on the public record
Who can be a registered agent in Arkansas?
Your registered agent can be an individual who lives in Arkansas or a commercial registered agent company (like us) with an office in the state.
What’s the point of hiring a registered agent?
Hiring a registered agent (rather than acting as your own registered agent) can spare you from:
- Listing your home address on the public record
- Being served a lawsuit in front of your clients or customers
- Needing to file paperwork and pay filing fees if you move
When you hire us to act as your registered agent, you get more perks, including a free domain name for your business for one year, a free operating agreement, and compliance reminders and filings.
Step 3: File Arkansas Articles of Organization
Next, you’ll file the paperwork that forms your LLC: Arkansas Articles of Organization. It costs $50 to file by mail or $45 to file online.
To file online, you’ll use the Arkansas Corporations Online Filing System. Online filings are usually approved in 3-7 business days, while mailed filings typically take 2-3 weeks (not counting mail time).
However you file, you’ll need to provide the same information:
1
LLC Name
Make sure it’s available and includes some version of “LLC.”
2
Principal Business Address
This doesn’t have to be where you do business, but it can’t be a PO box. If you hire us, we’ll list our address here.
3
Registered Agent Information
Remember that the address you list here needs to be a physical address in Arkansas.
4
Management Information
Check a box to indicate whether your LLC will be managed by the members (owners) or a manager.
5
Member Information
You need to list the name and title of at least one owner or manager. You can list all of them, if you’d like.
6
Organizer
This is just whoever is filling out and submitting the form for your LLC. When you hire us, we’ll list our information here.
After you submit this information to the Arkansas Secretary of State, you’ll receive back an approved copy and a Certificate of Approval.
Note: The information you list on this document will become part of the public record, posted online for anyone to find. To protect your privacy, we recommend minimizing the use of personal information (like home addresses) wherever possible.
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Step 4: Set Up Business Operations
Once your Articles are improved, you have an LLC. But you’ll need to take a few more steps to make sure your LLC ready to do business and protect your personal assets.
Adopt an operating agreement. An operating agreement is an internal record, kept on record with your LLC, that defines how your LLC undertakes procedures like voting, allocating profits and losses, transferring membership, and eventually even dissolving. You’ll need it to open a business bank account.
Get an EIN. An EIN is a nine-digit tax ID number issued to your LLC by the IRS. You can apply and get one online for free. Most LLCs are legally required to get one, and it’ll come in handy for opening a business bank account and spare you from the need to give out your own personal social security number.
Open a business bank account. This is crucial for maintaining your limited liability status, which is only as strong as the separation between you and your business. If you let your personal and business finances intermingle, you’re weakening your personal asset protection.
Obtain any licensing or permits. There’s no general state-wide business license required in Arkansas, but you may have to get a license anyway, depending on your business activity or your location. Check with your local municipality to see what kind of licensing you need.
Step 5: File BOI Report
The Beneficial Ownership Information (BOI) Report is a filing required by the Corporate Transparency Act (CTA), a law aimed at combating money laundering and other illicit activities. The filing requires you to disclose information about your LLC’s “beneficial owners”—the people who own or control your LLC. This information goes into FinCEN’s database, where certain law enforcement agencies will be able to access it.
What is a beneficial owner?
Who counts as a beneficial owner under the Corporate Transparency Act is determined by two criteria: ownership and control. Owners who own or control at least 25% of the LLC’s membership interest are considered beneficial owners, but so are any individuals who wield substantial control over the entity (like senior officers, for example).
Frequently Asked Questions
Does Arkansas require a business license?
Arkansas does not require LLCs to obtain a general state-wide license. However, depending on your location or the type of business you’ll be doing, you may have to obtain a business license at the city, county, or even state level.
Does Arkansas require an operating agreement?
No—there’s no law in Arkansas requiring an LLC to keep an operating agreement. However, it’s strongly recommended. A strong operating agreement can help prevent conflicts among members and clarify how the business should work. In the absence of an operating agreement, the state’s default LLC rules will apply to your LLC, and these might not work well for your LLC.
When you hire us, we provide a free operating agreement template written by our attorneys specifically for use in Arkansas. You can customize to suit your needs.
How much does it cost to start an LLC in Arkansas?
It costs $45 to file Articles of Organization in Arkansas, and $150 to file your annual report each year.
Do LLCs pay taxes in Arkansas?
At the federal level, LLCs are taxed as pass-through entities, which means the LLC’s profits “pass through” to the owners themselves, who report the profits on their personal tax returns. This is the default tax status, but LLCs can file paperwork with the IRS to apply to be taxed differently, either as an S-Corp or C-Corp.