LLC Arkansas In 2024: 6 Basic Steps To Start Your Own LLC
Reviewed by Kristina Knight, Journalist , BA
The article is checked by our editorial team, Which includes entrepreneurs who are painfully aware of how overwhelming and challenging it is to start a business for the first time.
Starting an Arkansas LLC is an option that many business owners decide to pursue. They do so for tax benefits, the protection of personal assets, and several other key benefits, which we’ll cover in more depth below. However, filling out an LLC Arkansas operating agreement, setting up an employer identification number, and getting a certificate of organization can all be challenging. If you’re a business owner who wants to invest your time and energy where it can have more of an impact, hiring an LLC formation service could make sense.
Whether you decide to do that or not, we’ve got you covered. Keep reading to learn everything you need to know about creating an Arkansas LLC.
6 Basic Steps To Start An LLC In Arkansas 2024
- Choose a name for your LLC in Arkansas
- Choose a registered agent in Arkansas
- File organizational paperwork with the state
- Prepare an LLC operating agreement
- Obtain an EIN for your LLC in Arkansas
- Paying annual Tax
LLC Arkansas: 6 Basic Steps To Start Your Own Business
Now that we’ve taken a look at what an Arkansas LLC is and why you might want to create one, let’s get more specific. Here are six basic steps to submitting your operating agreement, setting up an employer identification number,[1] and starting your limited company to enjoy limited liability protection.
Choose A Name For Your LLC In Arkansas
First off, you need to choose a name for your new limited liability company (LLC). Here are two things to know about that process.
Naming Rules In Arkansas
The key requirement for your Words Limited Liability company name is that it cannot be the same as any existing company when you file your certificate of organization and pay your filing fee. You can read more about naming rules in Arkansas here.[2]
Searching Available Name In Arkansas
You’ll want to conduct a search to verify that your name isn’t replicated by any other companies in the state to comply with local government regulations.
Choose A Registered Agent In Arkansas
Now you’re ready to pick an agent who can act as the official point of legal contact for your business. As we mentioned earlier, you can either select a professional service or take on the role yourself.
Both ways will satisfy the government agency in your area that tracks this. But if you also want help with things like legal documents, business income, business expenses, and a business accountant, then hiring a professional service that can expand as you hire employees may be the way to go.
File Organizational Paperwork With The State
Now you’re ready to start filing your basic organizational paperwork with the state. Make sure to double-check the documents before submitting so you don’t run into any issues down the line with setting up your business bank account, creating an annual franchise tax report, or with the Internal Revenue Service.
You may also want to begin looking into things like business insurance and tax structure now. These are important issues for both single-member LLCs and companies with many LLC members.
Prepare An LLC Operating Agreement
Now it’s time to complete your LLC’s operating agreement. This should be a fairly straightforward process of filling out the information for your limited company and LLC members so that you can begin to collect sales tax in the state figure out state taxes and hire employees when you pay taxes.
Once you submit the paperwork and it’s approved by the Secretary of State, you’ll get an Arkansas Certificate that says your company is licensed to do business in the state.
Obtain An EIN For Your LLC In Arkansas
At this point, you can start setting up your employer identification number (EIN). Your federal employer identification number is a shorthand that the IRS uses to track your business bank account, employee taxes, tax-deductible expenses, federal taxes, and more.
Paying Annual Tax
All that’s left to do now is to make sure that your company is set up to pay federal and state taxes when the time comes. That’s one reason why it’s a good idea to separate your personal income from your business finances – it makes the paperwork and expense-tracking process much easier when the time comes.
What Is An LLC?
LLC is short for a limited liability company. It’s a kind of business entity, just like a sole proprietorship and a corporation. Companies can choose to become a limited liability company by filing the correct paperwork (including operating agreements) and choosing a registered agent service.
What Is An LLC In Arkansas?
Arkansas LLCs are just limited liability companies that have filed their paperwork[3] with the Arkansas Secretary of State. To do that, you need to comply with each relevant Arkansas law as well as all Arkansas LLC naming guidelines.
We’ll provide a more in-depth look at what the Arkansas Secretary of State asks from you in the next section. For now, just know that LLC owners who want to primarily operate in the state of Arkansas, are likely best off by filing their operating agreement and annual franchise tax report paperwork in the state.
Benefits Of Starting An LLC In Arkansas
The benefits of creating an Arkansas limited liability company are many. With an Arkansas LLC operating agreement and registered agent services, you can:
- Enjoy special benefits related to federal income taxes
- Benefit from Arkansas sales tax classification
- Simplify the process of applying for business licenses
- Keep your personal assets protected
- Enjoy greater management flexibility than a sole proprietorship offers
Requirements To Start An LLC In Arkansas
The Arkansas Secretary of State makes it as easy as possible to file your operating agreement in the state and register as an LLC with the Internal Revenue Service. But there are two requirements you’ll need to satisfy in order to do so.
Appoint A Registered Agent
First; every Arkansas LLC needs a registered agent. You can either hire a professional registered agent service to do this for you or act as your own registered agent.
Your Arkansas registered agent will be responsible for accepting legal paperwork on your behalf, such as the service of process. They need to be available during regular business hours to avoid fines and penalties from the Arkansas Secretary of State.
The LLC’s Name Must Be Different From An Existing Business
It’s also important to note that your LLC name can’t be the business name of an existing company. You have to come up with a new LLC name that hasn’t been taken yet when you submit your paperwork.
The good news is that Arkansas has a business name search tool. It will immediately tell you whether your LLC name idea can work or if you need to choose a new business name.
How Much Does An LLC Cost In Arkansas?
It costs $45 to file a certificate of organization for a domestic LLC in Arkansas online, but the same form is $270 for a foreign LLC. Arkansas LLCs may also need to pay separate fees for things like business licenses, annual franchise tax reports, business bank account reports, and other kinds of official paperwork.
You’ll likely end up paying a fee on top of this if you choose to use professional services to turn your individual or business entity into an LLC with an Arkansas LLC certificate. A professional limited liability company can charge as little as nothing or as much as $299 to submit your operating agreements and create your Arkansas LLC.
The Top 2 LLC Services In Arkansas
| Product |  |
 |
| Name | ZenBusiness | Northwest Registered Agent |
| Full review | Read full review | Read full review |
| Link | Check Price | Check Price |
ZenBusiness
ZenBusiness is a great LLC service that could be a fit for your company. They’ll help you fill out all of the paperwork you need to submit to the Secretary of State and will ensure you never miss a filing fee.
ZenBusiness also offers after-hours customer support, and ongoing accounting and taxation support, and can be your registered agent just like Northwest. They also have standalone LLC creation packages that cost just $39. It’s tough to find a better deal than that.
Northwest Registered Agent
Northwest is our favorite LLC formation company overall thanks to its excellent blend of high-quality services, helpful customer support team, and great online resources. Whether you need help with business debts or figuring out a filing fee, you can get the help you want from Northwest.
The one thing to note about this company’s $0 LLC formation offer is that you have to pay for its registered agent service in order to access it. This costs $125 per year. So you actually end up having to pay that much to get your LLC created by Northwest at no additional charge.
However, Northwest also gives you the option of completing a guided LLC creation at a much lower price. This may be a better option for companies that are looking to save as much money as possible throughout the process.
Final Thoughts
Starting an LLC is a great way to run a business in Arkansas. You’ll get some nice benefits, more flexibility, and personal asset protection to ensure that your future is protected no matter what happens with the business.
The easiest way to create an LLC in Arkansas is to use one of the services that we listed. They won’t just help you file your paperwork; they’ll also assist with things like a business credit card, business insurance, and setting up a registered agent, among many others.
Ultimately, it’s up to you whether you think an LLC is the right structure for your business. But there are thousands of companies in Arkansas who have already decided that it is. We hope our guide has been a help if you decide to create one next.
Frequently Asked Questions (FAQs)
It varies based on whether you’re a domestic or foreign LLC. Domestic LLCs have to pay a $45 online filing fee, while foreign LLCs will pay a fee of $270. You may also have to pay a service provider if you choose to use one.
Starting an LLC will give you access to tax benefits, personal asset protection, and greater flexibility for both management and profit distribution than you would have if running a sole proprietorship.
Yes, there’s no need to hire a professional service if you don’t wish to do so. You can get all of the forms that you need online and follow the instructions to fill them out and submit them on your own.
This is a kind of business entity that’s registered in the state of Arkansas. It’s an alternative to running your company as either a solo entrepreneur or a corporation.
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- Irs.gov. (2017). Apply for an Employer Identification Number (EIN) Online | Internal Revenue Service. [online] Available at: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
- Name Availability Guidelines. (n.d.). Available at: https://www.sos.arkansas.gov/uploads/bcs/BCS_Name_Availability_Guidelines.7__.28__.21__.final__%281%29_.pdf.
- Arkansas.gov. (2023). Validation request. [online] Available at: https://www.sos.arkansas.gov/business-commercial-services-bcs.