How to Start an LLC in Arkansas

(February 2025)

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If you are planning to start an LLC in Arkansas, know that you are diving into an exciting venture! Have you ever wondered what it takes to transform your business idea into a legal entity? Imagine the sense of accomplishment you may feel when the state officially recognizes your business. But if you are still thinking of where to start, worry no more. You are in the right place.

Picture this: You’re at the helm of your own company, steering it towards success. But before you can set sail, you need to lay a solid foundation. That’s where forming an LLC comes in. It’s like building a sturdy ship that can weather any storm. Are you ready to embark on this adventure?

If you answered yes to the question above, read this article to explore the steps you need to take, from choosing a unique name for your LLC to filing the necessary paperwork. Along the way, you can also uncover the benefits of forming an LLC, such as protecting your personal assets and gaining credibility with customers. So, get started and turn your business dreams into reality!

1. Reserve an LLC Business Name

To form an LLC in Arkansas,  reserve  an LLC business name for yourself. Before filing your LLC paperwork, it’s crucial to ensure that your desired business name is available. You can check name availability through the Arkansas Secretary of State’s official website.

Once you have confirmed it, submit Form RN-06 or LLC-05 to reserve the name. This reservation holds the name for up to 120 days, giving you ample time to complete the rest of the LLC formation process. The fee to file by mail is $25, while if you complete the process online the price is $22.50. Note that to file Form RN-06  costs you $25, while if you complete the process online by filling LLC-05 costs $22.50.

2. Have a Registered Agent

To set up an LLC in Arkansas, have a registered agent. Think of a registered agent as someone who is responsible for receiving important legal and tax documents on behalf of your LLC. In Arkansas, you can act as your own registered agent if you are at least 18 years old and have a street address within the state.

Alternatively, you can appoint another individual or a professional service to act as your registered agent. If you hire a professional, prepare for professional services that typically charge between $50 and $300 annually. Do you know you can change your registered agent after registratio? Yes, the process is simple. just ensure you file Form DO-03. The filling process is free.

3. Watch out for Recent Changes in LLC Law

To begin your Arkansas LLC journey, watch out for recent changes in the state LLC law. Be aware that Arkansas has recently adopted the Uniform Limited Liability Company Act (ULLCA), which has brought several changes to the LLC formation process. One significant change is the replacement of the “Articles of Organization” with a “Certificate of Organization.” Additionally, while an operating agreement is no longer a legal requirement, you still need it  for outlining the management and operational structure of your LLC.

4. File Your Arkansas LLC Paperwork

To officially form your LLC, you need to submit the appropriate paperwork. If your business is domestic LLCs, this involves filing Form LL-01, the Certificate of Organization. You can get this form online or fill out the PDF copy. Also, note that the pdf filling costs $50, while the online form costs $45.

However, if you are foreign entity wishing to establish an LLC in Arkansas, you must complete Form FL-01, the Application for Certificate of Registration of Foreign Limited Liability Company. The filing fees vary, with online submissions generally being slightly cheaper than paper filings. Whatever the case may be, bear in mind that it may cost you between $270 and $300.

5. Get Your EIN Number

To launch an LLC in Arkansas,  get your EIN number. Be aware that an Employer Identification Number (EIN) is essential for most businesses, including LLCs. See it as a unique identifier for your business. You can also use it for tax purposes. You can obtain an EIN for free from the IRS website. Having an EIN helps protect your Social Security Number (SSN) from identity theft and is necessary for opening a business bank account, hiring employees, and filing taxes.

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6. Pay Your LLC Franchise Tax

To establish an LLC in Arkansas,  pay your LLC franchise tax.  Keep in mind that if you run an LLC in Arkansas, you need  to pay an annual franchise tax of $150. According to the Arkansas Corporate Franchise Tax Act of 1979, this tax is due on May 1 each year. Maintaining timely payment of this tax is crucial to avoid late fees, penalties, and the potential revocation of your LLC’s ability to operate within the state. You can pay the franchise tax online or by submitting paper documents.

7. Create an LLC Operating Agreement

To run an LLC in Arkansas,  create an LLC Operating Agreement. Although Arkansas no longer legally requires an operating agreement for LLCs, know that it is still a valuable document. An operating agreement outlines the ownership structure, management responsibilities, and operational procedures of your LLC. It provides clarity and helps prevent disputes among members. Additionally, having an operating agreement can enhance your LLC’s credibility and professionalism.

Recap

To start an LLC in Arkansas, reserve your business name and appoint a registered agent. Stay updated on any recent changes in LLC laws. File your Arkansas LLC paperwork and obtain your EIN number. Remember to pay your LLC franchise tax. Finally, create an LLC operating agreement to complete the process.

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