Start an LLC in Arkansas

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).

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.

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:

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.

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.

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)

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.

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.

*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.