How To Start An LLC In Arkansas
If you are looking to start an LLC in Arkansas this guide will be very beneficial because I have covered all the steps that will help you form an LLC in Arkansas by yourself.
Cost And Time Required to Start An LLC in Arkansas
The cost for starting an LLC in Arkansas is $45. And it takes approximately 3-7 business days if you file online. However, filing by mail can take 2-3 weeks plus mail time.
Starting An LLC in Arkansas
You need to follow five steps to start an LLC in Arkansas.
If you are looking to start an LLC by yourself follow my free guide till the end.
If you want someone to do it for you. I recommend hiring Registered Agents Inc. (affiliate link)
They only charge $100+state fee. Registered agent is free for the first year. Moroever, they take privacy very seriously. They keep your personal information private and never sell your data. I have chosen them after an extensive research.
I have reviewed the top companies to start an LLC you can check them out here.
Step-by-step guide to Starting an LLC in Arkansas
If you are still here and want to form An LLC by yourself. Let's get started.
1. Search for LLC Name
You have to search for an LLC name before finalizing it you have to ensure that the name you are choosing is unique and does not overlap with another business name in the state of Arkanasas.
There cannot be two similar name LLCs in the same state so you have to be vigilant. You can search for the name and check if your LLC name is not similar to someone else LLC on the website of Arkansas Secretary of State: Business Entity Search.
Learn and understand what can be the name of an LLC in the state of Arkansas.
2. Appoint a Registered Agent
After finalizing your name you have to choose a registered agent.
An Arkansas Registered agent can be a person or a company that is willing to accept legal mail and state notices for your limited liability company (LLC).
Who can be a Registered Agent of My LLC in Arkansas?
There are three options present.
Before deciding on the Registered agent you need to know that the Registered Agent in Arkansas must have a physical address. Po boxes are not allowed at all.
You should also know that the registered agent information will be in public records so, anyone can access it. If you don't have an address in Arkansas or want more privacy I would recommend hiring a registered agent services.
I recommend Registered Agents Inc
I recommend them because they let you use their address throughout the filing so you will have complete privacy. Moreover, they are quick as soon as they receive a mail on behalf of your LLC they scan it and upload it immediately to your secure account which is only accessible by you.
They have excellent customer support powered by real humans, not bots.
I trust them to be my own LLC formation company and registered agent services
So, if you are interested in hiring them Form an LLC with them you will get a registered agent for free for the first year it will only cost you a $100+ state fee. Visit here (affiliate link)
However, you only need them for registered agent services which cost $200 per year you can go to this link. (affiliate link)
I am transparent about being an affiliate you can see that I mention everywhere that it is an affiliate link. I do not promote them for just sake of commission. I chosen them after an extensive research. I trust them with my own LLCs.
3. File Certificate Of Organization
Now don't get confused. The article of Organization and certificate of organization are the same thing. Back in 2021, the state of Arkansas changed its name from Article Of Organization to Certificate of Organization.
The third step is filing a Certificate of Organization with the state secretary of Arkansas.
The filing cost is $45 for online Formation which you have to pay because this fee is mandatory and it will create your LLC.
If you want to file it yourself ensure that you fill it properly. If you are doing it for the first time make sure that there are no mistakes. However, if you are feeling confused or stuck I recommend hiring a company it will save you time and hassle. Start Your Business Today with Registered Agents Inc. (affiliate link)
4. Make an operating agreement
An operating agreement is an internal document you don't have to file with the IRS or the State of Arkansas. But it works as a support to the certificate of organization.
The Certificate of Organizations produces the LLC while the operating agreement shows who owns the LLC. I recommend making an operating agreement if you are even a single member of the LLC.
Moreover, an operating agreement can be required when you try to open a business bank account for your Arkansas LLC.
Also operating agreement aids the legal process. If your LLC gets sued You can show your operating agreement in court that your LLC is legal, running smoothly and everything is clearly stated in the agreement. It might help you win a case so, an operating agreement is an essential document and you should keep it with you.
5. Arkansas LLC EIN
Now this is the final step. You need to obtain an EIN from the IRS for your Arkansas LLC.
EIN is important because it is necessary for the following things.
How much does it cost?
It costs nothing. It is free to obtain EIN for the IRS.
How long does it to get one?
It depends on what method are you choosing. There are three ways.
What Steps should I take after getting an Arkansas LLC
Your work is not done once the LLC is approved and you have obtained the EIN. You should take the following steps to run your LLC smoothly.
Open a business bank account for your LLC
Always open a separate business bank account for your LLC. Do not use your personal bank account as it can make things complicated. The LLC business bank account will keep your finances straight and will not mix up with your personal finances.
The bookkeeping and accounting are also easy if you have a separate bank account.
领英推荐
Moreover, you have personal liability protection. As you know the LLC provides personal liability protection. In case of getting a lawsuit, your personal assets will remain safe.
Obtain Business Licenses and Permits
Depending on the business type you may require a business license or permit to keep running your business smoothly. You will be glad to know that the state of Arkansas does not have a requirement for a general business license. However, you still need to get a license from the city or county where your business is operated.
For example you are running a Salon you will need a permit from the city or country where your Salon is located.
File Annual Franchise Tax with the State of Arkansas
All Arkansas LLCs are required to file an annual franchise tax with the state of Arkansas.
How much does it cost?
The Annual Franchise Tax costs $150 every year and you have to file it to keep your LLC in Good Standings.
Okay, so when is it due?
The Annual Franchise tax is due on the 1st May of every year. For Instance, your LLC was approved on 15th Feb 2024 your annual tax report will be due on May 1st, 2025.
How to File an Annual Franchise Tax Report
You have two options you can file it online or via mail. The online option is better and easy. Mail can get lost and take time. Online filing is instant.
Pay Taxes
You have to pay taxes by yourself. It is a general rule that an LLC does not pay federal taxes but the owner or owners of the LLC pay taxes in their personal tax returns.
If you are a single-member LLC you will be taxed as a sole proprietor.
If you are a two-member LLC you will be taxed as a partnership.
Moreover, You can Ask the IRS to tax your LLC as an S-corporation or C-corporation.
It depends on how you want to be taxed.
You should know that there can be state taxes and local income taxes as well. You have to pay both federal and local taxes.
How to Start An LLC In Arkansas FAQs
I am going to answer frequently asked questions about Arkansas LLC.
Can I from An LLC in Arkansas Online?
Yes. You have to pay the $45 along with a Certificate of Organization and your LLC will be formed online within 3 to 7 business days.
How much does it cost to get an LLC in Arkansas?
It costs $45 for the formation and then $150 every year in the name of the annual franchise tax report. The annual Franchise tax report is necessary and you have to pay it every year to keep your LLC in good standing.
Does an LLC need a business license in Arkansas?
The good news is that the State of Arkansas does not have general business license requirements. However, you may need to get an industry-specific license also known as an occupational license. It depends on what kind of business you are running.
Wrapping it up!
I am going to conclude this article by saying that Arkansas LLC formation is not hard. You can do it yourself with the knowledge that I provided in this free guide. However, if you are new or want to save time and hassle you can always hire a company that can help you form your business and also keep it compliant till the life of your LLC.
I recommend Registered Agents Inc. (affiliate link)
Form an LLC through my links and it will give me reward for providing free guides about LLC formations. I am an affiliate I may earn commission if you form through my links but it will not cost you anything however, will help me keep providing you with the free guides.