How to form an LLC in Arkansas
Arkansas is an excellent place to form a new LLC, with low business costs
and a highly ranked quality of life.
Every state has slightly different requirements for forming an LLC.
Follow along closely to learn the required steps for creating your own Limited Liability
Company in the state of Arkansas.
There are two ways to form an LLC in Arkansas
You can form one yourself
or you can hire a service to do it for you.
Let’s start by looking at the five basic requirements to form an LLC in Arkansas on your own
1. Name your LLC.
You’ll need to choose a company name that complies with Arkansas naming requirements,
and do a name search on the State of Arkansas Website to make sure the name isn’t already taken.
You should go ahead and register the URL for your business website and email as well.
2. Choose a registered agent.
Arkansas requires that you nominate a registered agent for your LLC
who is your business’ point of contact with the state.
The registered agent can be an individual within the company including yourself
or you can hire a professional service authorized to do business in Arkansas.
3. File the Articles of Organization.
To register your Arkansas LLC, you will need to file the Articles of Organization with the state of Arkansas.
This can be done online, by mail, or in-person.
You will need to state whether your LLC will be member-managed or manager-managed.
Member-managed means all members of the LLC manage the company.
This is good for small organizations, where everyone is involved in day-to-day operations.
The second option is manager-managed, where individuals are appointed to manage the LLC.
This is appropriate for larger organizations,
where not everyone is involved in the day-to-day affairs of the business.
4. Create an Operating Agreement.
You should also create an operating agreement
to establish ownership terms, member roles, and operating procedures.
This legal document ensures that all business owners are on the same page and reduces the the risk of future conflict
A comprehensive operating agreement will further establish your LLC as a separate legal entity,
however, it does not need to be filed with the state.
5. Obtain an EIN.
Lastly, you’ll need to get an Employer Identification Number, or EIN, from the IRS.
Also known as a Federal Tax Identification Number, your EIN is like a social security
number for your LLC and is important for taxes and banking.
EIN’s are free of charge, and can be obtained from the IRS online or through the mail.
And with that, you will have formed an Arkansas LLC on your own.
Option 2.
Hire a Professional Service
The second way to create an Arkansas LLC is to hire a professional service to create your LLC for you.
Hiring a professional service to file your forms and act as your registered agent for
the LLC will cost you an additional 50 to 150 dollars.
However, there are several benefits to working with a pro:
A hired registered agent helps with getting your reports filed on time, helps you stay
organized by keeping your business mail separate, and is available at all regular business hours
to accept official mail and legal papers on your LLC’s behalf.
A final and important additional benefit of using a service is privacy: a professional
service will provide a level of privacy by withholding your personal name and home address
from the LLC’s contact information.
There are many reasons you might not want your personal information easily accessible
and associated with your business - hiring a professional LLC formation service is an
easy way to accomplish this.
Now that you have seen the different requirements and ways you can form an LLC in Arkansas,
visit our site and take some time to research your options and establish a solid foundation
for your business activities.
Click on the links in the description below to research the top 5 professional formation
services, or get more information on how to form an Arkansas LLC on your own.
We offer a host of free templates and tools to help accelerate your small business, from
operating agreements to business plans - all free of charge.
Visit us at HowtostartanLLC.com