Arkansas LLC Formation Guide

This guide will help you set up an LLC in Arkansas. It includes step-by-step instructions for obtaining tax IDs and filing company documents.

Overview

Because they are affordable to set up, offer flexibility for the owners and are simple to manage, LLCs are the most preferred business structure. Your LLC legalizes your business and limits your personal liability. It also allows you to have tax flexibility. As you go through this process, the following steps will guide you.

Step-by-Step Arkansas LLC Instructions

  1. Check Name Availability

    Your LLC’s legal name may not be in conflict with any registered name. You can search for the name you want to check availability.

    Name Search: Arkansas Secretary of State – Business and Commercial Services Division (BCS).

    Name Search

    Name Reservation: Optional
    Suffix: Each limited liability company must have its name in the articles of incorporation. It should include the words “Limited Liability Company” (or “Limited Company”) or the abbreviations L.L.C.,” L.C.,” L.C.,” L.C.,” L.C.,” L.C.” or “LC.” The term “Limited” can be abbreviated to “Ltd.” or the word “Company” may be abbreviated to “Co.”

    AC S4-32-103

  2. Name a registered agent

    Before you can file for Arkansas LLC incorporation, you must decide who your registered agent is. Register agent is the legal representative of a business that receives notices about lawsuits and other legal notices.

    Every LLC must have a registered agent as required by state law. When you file Arkansas articles, the registered agent will be designated by Arkansas Secretary of State (BCS).

  3. Arkansas Certificate of Formation

    To create a limited liability company, file the articles of organization

    Agency: Arkansas Secretary of State – Business and Commercial Services Division (BCS).
    Form:
    LL-01: Articles for a Dom. Limited Liability Co.
    Filing Method Online or Mail.
    Agency Fee: $50 paper. $45 online.
    Turnaround: ~2-3 business days
    Law:
    Arkansas Code Title 4: Business and Commercial Law
  4. Establish Company Records

    Your LLC must maintain accurate and complete records. Your LLC’s first records will be your filed articles of organization. Other official records that your LLC may produce include:

    • Minutes of meetings
    • Operating agreement
    • EIN verification letter
    • Amendments to and other filings made by the LLC during its lifetime

    Secure, centralized tools are needed by organizations to manage and access sensitive records.

  5. Make the Operating Agreement

    An Operating Agreement is the governing document of the LLC. This document outlines the rules and procedures for how the LLC will operate, such as holding an annual meeting. The agreement will be reviewed and approved at your organization meeting.

  6. Organise the Organizational Meeting

    The organizational meeting is the first meeting of members of an LLC. To conduct this meeting, you will need to have your operating agreement and the filed articles of organization. Keep a record of the meeting and keep it in your company records book.

  7. Register for a Federal Employer Identification Number.

    An EIN is required for any LLC that has more than one member, or hires employees. A bank account opening requires an EIN.

    Agency: Internal Revenue Service (IRS).
    Form:
    IRS Form S-4
    Filing Method You can send mail, phone, or fax to online.
    IRS fee $0
    Turnaround: Online or over the phone, immediately. 4 business days via fax. 4-5 weeks via mail
    Notes: Only certain hours are available for the IRS website. Before closing your session, print your EIN. For more information, please refer to IRS Pub 1635 Understanding Your EIN.
  8. Arkansas State Tax Identification Numbers/Accounts

    Arkansas has a single application for tax registration.

    Send your submission to:
    Arkansas Department of Finance and Administration

    http://www.dfa.arkansas.gov/

    Form:

    Form AR-1R – Combined Business Tax Registration Form
    Instructions:

    Instructions to Form AR-1R
    Guidance:

    Arkansas Starting A New Business Guide – An Educational Brochure For Arkansas Taxpayers
    Filing Method
    Mail or in person
    Fee:
    $0. $50 for filing a Gross Receipt Permit (Sales Tax).
    Notes:
    You must apply at least two weeks before the start of taxable activity. You must submit your application no later than 60 days before the opening date.
  9. Consider Electing C-Corp Taxation or S-Corp Fiscal

    Your LLC will automatically be subject to pass-through taxation. However, the majority of LLCs maintain this tax classification. Some LLCs can choose to elect S-Corp and C-Corp tax treatment.

    • S-Corp is a tax-saving tool that can be used by owner-employees earning more than $75,000 annually.
    • Double taxation is a problem for C-Corps: members pay taxes on distributions and the corporation pays taxes. You may be eligible for C-Corp tax treatment if your profits exceed $250,000 or you offer employee benefits.
  10. Get Business Licenses and Permits

    You must have the appropriate licenses and permits to run your business legally. It is easy to find the right licenses and permits for your state and federal business.

    Arkansas Business License

    NOT REQUIRED

     

    Arkansas does not require licensure for general business licenses.

    Arkansas does not have an Arkansas general business license. However, local licenses are required.

  11. You must continue to file for your LLC

    You are required to file both federal and state tax returns.

    To maintain good standing with the secretary-of-state, many states require that business entities file an annual report. The table below shows Arkansas LLCs that must file an annual report.

    Arkansas Corporation Annual Report Requirements:

    Agency: Arkansas Secretary of State – Business and Commercial Services Division (BCS).
    Filing Method  
    Agency Fee: Outstanding stock: Minimum.3% of outstanding capital stock. Without stock: $300 +$5 to file online.
    Due: Each year, May 1.
    Law:
    A.C.A. SS 26-54 -104
    Penalties: $25 daily plus interest Penalty is not subject to double the tax due.
    Notes:
    • An officer, member or manager of a company must file.
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