How to Form an LLC in Arkansas

To form an LLC in Arkansas, here's everything you need to know.

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Here are the steps you need to take to form an LLC in Arkansas. For more information on how to form an LLC in any state, see Nolo's article on How to Form an LLC

1. Choose a Name for Your LLC

Under Arkansas law, an LLC must have the words "Limited Liability Company," "Limited Company," or the abbreviation "L.L.C.," "L.C.," "LLC," or "LC." The word "Limited" may be abbreviated as "Ltd.," and "Company" may be abbreviated as "Co." 

Companies which perform professional services must use the words "Professional Limited Liability Company," "Professional Limited Company," or the abbreviations "P.L.L.C.," "P.L.C.," "PLLC," or "PLC." The LLC name cannot contain the name of a person who is not a member except that of a deceased member. The word "Limited" may be abbreviated as "Ltd." and the word "Company" may be abbreviated as "Co."

Your LLC’s name must be distinguishable from the names of other business entities already on file with the Arkansas Secretary of State. Names may be checked for availability by searching the Arkansas Secretary of State business name database

An available name may be reserved for 120 days by filing an Application for Reservation of Limited Liability Company Name with the Arkansas Secretary of State. The form may be completed and filed online or by postal mail. The filing fee is $25.

2. File Articles of Organization

An Arkansas LLC is created by filing Articles of Organization with the Arkansas Secretary of State. 

The articles must include: the LLC's name and address; the name and address of LLC’s registered agent, and a statement as to whether the LLC will be run by a manager. The articles may be filed online through the Arkansas Secretary of State’s website. 

The filing fee is $50.

3. Appoint a Registered Agent

Every Arkansas LLC must have an agent for service of process in the state. This is an individual or business entity that agrees to accept legal papers on the LLC’s behalf if it is sued. The agent should agree to accept service of process on behalf of the limited liability company prior to designation. The registered agent may be (1) an individual who is a full-time resident of Arkansas, or (2) a business entity registered with the Arkansas Secretary of State.

All of the paperwork and procedural steps to start a limited liability company in Arkansas can be done online using Nolo's Arkansas Online LLC Formation application.

4. Prepare an Operating Agreement

An LLC operating agreement is not required in Arkansas, but is highly advisable. For help creating an LLC operating agreement, see Form Your Own Limited Liability Company, by Anthony Mancuso (Nolo) or use Nolo’s Online LLC. If an operating agreement is created, it need not be filed with the Articles of Organization. 

5. Publication Requirements

None.

6. Comply With Other Tax and Regulatory Requirements

Additional tax and regulatory requirements may apply to your LLC. These may include:

EIN

If your LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN),  even if it has no employees. If you form a one-member LLC, you must obtain an EIN for it only if you elect to have it taxed as a corporation instead of a sole proprietorship (disregarded entity). You may obtain an EIN by completing an online application on the IRS website. There is no filing fee.

Business Licenses

Depending on its type of business and where it is located, your LLC may need to obtain other local and state business licenses.

7. Pay Your State Tax Obligations

All LLCs and foreign LLCs must pay Arkansas taxes to the Arkansas Secretary of State. A minimum $150 tax must be paid each year. Annual franchise tax reports must also be filed with the Arkansas Secretary of State. The annual taxes and report may be filed online. For details and forms, see the Arkansas Secretary of State website.

8. Foreign LLCs Doing Business in Arkansas

All LLCs organized outside of Arkansas must register with the Arkansas Secretary of State to do business in Arkansas. Foreign LLCs must appoint a registered agent for service of process physically located in Arkansas. To register, file an Application for Certificate or Registration of Limited Liability Company. The application may be completed and filed online or by postal mail. A certificate a certificate of existence or similar document from the LLC’s home state must also be filed with the Secretary of State. The filing fee is $270 if filed online, $300 if a paper application is filed by mail.

Before filing, make sure the LLC’s name is available in Arkansas by checking the Arkansas Secretary of State’s business name database. If the name is not available, the foreign LLC may use a designated name to transact business in Arkansas. To do so, it must deliver to the Arkansas Secretary of State for filing a copy of the resolution of its members certified by its secretary adopting a designated name.

by: , J.D.

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