What is a Arkansas LLC?

An Arkansas LLC is a business structure much like a hybrid between a Partnership and a Corporation. A AR L.L.C. (limited liability company) has a Partnership's flexibility regarding management, taxes, and certain operations. Like a Corporation, an LLC is formed at the state level, has its own separate legal identity, and has liability which is limited to the assets owned or controlled by the LLC. This means that the debts and assets of the business belong to the LLC, not you. So if the business is sued, damages are usually limited to the LLC’s assets (not your house or car).

Can you be your own Registered Agent for your Arkansas LLC?

Yes- You can be your own Arkansas registered agent if you live in the state, but you’ll need to include your name and address on the Certificate of Organization, which becomes part of the public record.

How much does it cost to start an LLC in Arkansas?

The fee to file an Arkansas Certificate of Organization is $45 when filing online, and $50 with a paper form.

How are LLCs taxed in Arkansas?

LLCs are taxed as pass-through entities by default, which means that they don’t pay corporate income tax. Instead, the revenue of the LLC goes directly to the members, who each pay individual income tax on their part of the revenue on personal state and federal tax returns, subject to the federal 15.3% self-employment tax. You may also need to pay local taxes, depending on which Arkansas city or county your business operates from. Arkansas cities may also add additional sales tax on top of the state’s basic 6.5% sales and use tax rate.

How long does it take to form an LLC in Arkansas?

A Certificate of Organization filed online is processed by the state in 3 to 7 business days, and mailed forms take 7 to 10 business days.

What’s the difference between an LLC and PLLC in Arkansas?

Arkansas allows professional limited liability companies (PLLCs), a type of LLC specifically for licensed professions, such as medicine, law and engineering. These professions require certification by a state board governing their licensing. However, Arkansas does not specifically require licensed professions to form a PLLC. Professional services can be provided by any business type, even standard corporations and conventional LLCs, unless a specific licensing board expressly prohibits it.

Does Arkansas allow series LLCs?

Yes, Arkansas allows the formation of series LLCs. Arkansas Series LLCs must file a Certificate of Organization for a Series Limited Liability Company, as well as a Protected Series Designation for each series formed.

How do you transfer ownership of an LLC in Arkansas?

Your Arkansas LLC’s operating agreement should define procedures for how ownership can be transferred from one or more members. Usually, LLC ownership is transferred with a partial sale when a single member sells their interest in the LLC, or through a complete sale of the company.

Start an LLC in Arkansas

Use our free business tools below to complete your Arkansas Certificate of Organization. This is the document you file directly with the Arkansas Secretary of State to form your LLC.

If you want more, hire us to form your LLC in Arkansas for just $39 + state fees. We’ll get your business stood up in minutes with a free domain, website, email, business phone, and more.

File today

with the help of a Registered Agent

How to Start an LLC in Arkansas

Reviewed by Andrew Corsberg, Esq. February 15, 2023

When you form an Arkansas LLC, your business gets a flexible management structure and tax options. Most importantly, your business gets liability protection. To start an LLC in Arkansas, submit a Certificate of Organization to the Arkansas Secretary of State and pay a $45 filing fee ($50 to file a paper form).

Starting a business in Arkansas requires more than just filing paperwork. Below, we’ll go over everything you need to do to form your LLC.

1. Name Your LLC

Your LLC name will be officially registered when you file your formation paperwork with the state. Your name needs to follow the state requirement for LLC names, which means it must:

Contain the words “limited liability company” or “limited company,” the abbreviations “L.L.C.,” or “L.C.,” or “Ltd. Co.”
Be distinguishable from the name of any other business in Arkansas.

You can make sure your preferred name is available by searching the Arkansas Secretary of State’s business registry.

Tip: If your name is available but you’re not quite ready to file formation paperwork, consider filing an Application for Reservation of Entity Name with the Arkansas Secretary of State. Your name will be reserved for 120 days in exchange for a $25 fee ($22.50 if filed online).

2. Register Your Domain Name

A domain name is a business’ website address, or URL. For example, ours is northwestregisteredagent.com. The domain name you choose could affect your business’ reputation and success.

Many people use clues like the domain name to decide if a website is safe to use. When the business’ domain is complimentary or similar to the business’ name, it promotes professionalism and trust.

Plus, once you have a domain name, you can get a business email address. This lets you send emails from a professional account, keeping your personal account private. Using a business email address also indicates to customers that you are safe to interact with.

Tip: When you hire Northwest to form your LLC, you get a domain name free for a year.

3. File Arkansas LLC Certificate of Organization

Once you’re ready to officially form your business, it’s time to file your Certificate of Organization.

You file your LLC formation paperwork with the Arkansas Secretary of State. You can either file online ($45) or by mail/in person ($50). Certificates filed online take between 3 and 7 business days to process, while mailed forms take 7 to 10 business days.

Here’s what to include:

Make sure your name includes “Limited Liability Company,” “Limited Company,” or an acceptable abbreviation.

This is the address of your business. It must be a physical street address.

The registered agent is the person or company authorized to accept legal mail on your LLC’s behalf.

This is the physical street address of the office where your registered agent can be reached.

This is for franchise tax purposes.

List a name, address, and phone number of someone you want to receive the franchise tax reporting form every year. You’ll also need to list your company’s EIN.

4. Adopt an Operating Agreement

An operating agreement is a contract between the LLC’s members that sets the company rules and structure. It can include any rules you want, but generally they cover things like initial investments, profits and losses, voting rights, and dissolution processes.

Arkansas does not require LLCs to adopt a written operating agreement, but it’s standard business practice and can help you avoid legal disputes and misunderstandings.

Tip: Use our free Arkansas Operating Agreement Template to make things easier. It was drafted by our attorneys and includes everything you need in an operating agreement.

5. Get an EIN

An EIN (Employer Identification Number) is an unique number given to businesses by the IRS. These numbers aren’t technically required, but if you don’t have one, there’s a laundry list of things you can’t do. For example, you need an EIN if you want to hire employees or open a bank account.

Tip: You can file for an EIN yourself or hire us to do it for you.

6. Get a Business Bank Account

Opening a bank account is an important step to strengthening your liability protection. LLCs are considered separate legal entities from their owners, but that separation still needs to be demonstrated through good faith practices like keeping your finances separate. If you blur the line between your business and personal funds, you could lose your liability protection.

To open a bank account for your Arkansas LLC, you’ll likely need your:

Arkansas LLC Certificate of Organization (a copy is fine)
LLC operating agreement
EIN
LLC Resolution to Open a Bank Account (if a multi-member LLC)

7. File Arkansas Annual Franchise Tax Report

All Arkansas LLCs must file their Arkansas Annual Franchise Tax Report with the Secretary of State by the first of May. The report updates the state on who owns your LLC and how you can be contacted.

The franchise tax is a flat $150, and a $25 fee applies for late reports (with an additional 10% interest for each year you’re delinquent). Worried about forgetting to file it? Hire us to file your Annual Franchise Tax Report for you, and we’ll let you know 90 days before it’s due.

8. File the Beneficial Ownership Information Report

Most new LLCs need to file a Beneficial Ownership Information (BOI) Report within 90 days of state formation. This report discloses identifying information about your company applicant and all beneficial owners to the federal government. The BOI Report is not a public record but can be used by law enforcement and certain federal agencies, as well as financial institutions with customer due diligence requirements.

You can file your LLC’s BOI Report for free through the FinCEN.gov website. Or, we can file your BOI Report for you for $9.

*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.