How to Start an LLC in Arkansas: If you’re interested in setting up an Arkansas LLC, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. Arkansas’ laws make it easy to establish your LLC in Arkansas. On this page, You’ll find all the steps that must be taken to ensure that your Arkansas LLC has been correctly established. We recommend you read the whole article very carefully word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Arkansas
- After Starting Your Arkansas LLC
- Arkansas Foreign LLC
- Arkansas LLC Formation Review
How to Start an LLC in Arkansas
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection.
If you wish to start an LLC in Arkansas, mainly you have to file your Certificate of Formation with the State and pay a filing fee of $50. There are some more steps to follow to get your LLC established in Arkansas. The following steps explain everything you need to create your LLC in Arkansas in 2022. Let’s get started!
Step 1: Decide a Name for Your Arkansas LLC
The very first step while forming an LLC in Arkansas is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
Arkansas LLC Naming Guidelines
There are a few specific requirements all the LLCs in Arkansas have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Arkansas can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
- “Limited Liability Company”, “LLC”, “L.L.C.”, “LC”, “L.C.”, and “Limited Company” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Arkansas State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|Arkansas Business Entity Search – Online Name Search|
Name Reservation Form – PDF
Arkansas LLC Name Search Guide – Instructions
|Secretary of State|
Attn: Business and Commercial Services Division
1401 W. Capitol Street, Suite 250
Little Rock, AR 72201
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided then you can reserve your LLC name for 120 days. To keep the name, you have to file a name reservation application and pay $22.5 (Online) and $25 (by mail or in-person) to reserve your name with the Arkansas Secretary of State. You can renew your LLC name after 120 days only once.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Arkansas Secretary of State by submitting the Form (Assumed Name Certificate) by mail or in-person along with the filing fee of $25.
Recommended: You can do name search, get company logo, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Tailor Brands offer DIY website templates and incredible logo designs. If you plan to get a website then it is wise to have a “.com” domain for your business but these days you can also use other TLDs like “.company”, “.xyz” etc. With Tailor Brands, you can get everything you need at an affordable price.
It is not legally mandatory to use the word LLC in your domain name or email. If you want you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Arkansas
The second step to forming an Arkansas LLC is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Arkansas. Hence, hiring a competent Arkansas Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Arkansas or has a physical street address. Their business address or the principal address should be in Arkansas. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services, even if you buy their cheapest plan (normally $49/year) you also get registered agent service and other services at a reasonable price.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Arkansas. Some LLC formation services offer standalone Arkansas registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.
A person who is above 18 years of age and has a physical address in the state of Arkansas can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of Arkansas and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in Arkansas.
Step 3: File Certificate of Organization in Arkansas
The third and most important step in forming an Arkansas LLC is to file the Certificate of Formation. This Arkansas Certificate of Organization is a legal document needed to officially register your business with the Secretary of State. It costs $50 (online or by mail) to file your formation certificate in Arkansas. (Read more on LLC cost in Arkansas).
The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (member-managed or manager-managed). Before hiring employees in Arkansas LLC, one should know about the rules and regulations thoroughly. Also if you are expanding your existing business (an LLC) to Arkansas then you need to register as an Arkansas Foreign LLC.
How to File Online
How to File by Mail
If you prefer filing real-life forms for your Arkansas LLC registration, then you can download form LL-01. Read the form thoroughly, fill it out, and send it to the address mentioned below.
Mailing Address: Arkansas Secretary of State
1401 W. Capital Ave.
Little Rock, AR 72201
Processing Time: It takes a week to form an LLC in Arkansas (by mail). On the other side, it takes only 48 hours if filed online. However, the time can be different due to various factors. Having professional help can speed up the time even more.
Recommended: Online LLC Formation service can provide all these documents in much lesser time along with lifetime customer support and 100% accuracy. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Step 5: Create Your Arkansas LLC Operating Agreement
Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing an Arkansas LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation. Like Arkansas, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve Arkansas LLC later. Hence, having an operating agreement may not be necessary but it is definitely ideal.
Recommended: You can get operating agreement templates at only $29 with TailorBrands. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Step 5: Filing an Arkansas LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Arkansas LLC requires following specific rules and regulations. On the other side, EIN for Arkansas foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your Arkansas LLC. If you do it yourself it should take you a long time to properly understand and do all the steps.
However, if you use TailorBrands it should take fewer hours and you always have live chat with expert support for any help you need.
After Starting Your Arkansas LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Arkansas business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees
- File an Arkansas LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Cost of Arkansas LLC
Forming an LLC in Arkansas is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form an Arkansas LLC. LLCs have pass-through taxation. Hence, your Arkansas LLC won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in Arkansas,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee|
Certificate of Formation Fee
|$25 for 120 days|
In Arkansas, LLC name reservation is mandatory. If you wish to hold the name for some time (120 days) without registering your LLC, then you can do that online. It can be renewed by paying $25 for another 120 days. But you can renew it only once before you register your LLC. In some states, Name Reservation is not mandatory. Read our guide on LLC costs in Arkansas for more information.
According to the Franchise Tax rule, LLCs have to pay this tax on a yearly basis. Annual Franchise Tax reports are considered to be the annual revenue report or annual report of the LLC. If you evaluate LLC costs in Arkansas, the amount of Franchise tax is not as high as for any other form of business ownership.
Arkansas Foreign LLC
If you are interested in forming a Foreign LLC in Arkansas then you need to file the Certificate of Foreign LLC to the Arkansas Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Arkansas SOS to form your foreign LLC in Arkansas. To know more in detail, check out our guide on Arkansas Foreign LLC.
Reasons to Start an LLC in Arkansas
Arkansas ranked 8th in the State Business Tax Climate Index and 5th for the cost of living. Currently, the state has 36,000 active LLCs, including domestic and foreign. Along with various tax benefits, Arkansas has a few more factors that are certainly beneficial to starting an LLC there.
Arkansas has a business-friendly atmosphere for LLCs. Over 7000 LLCs are formed in a year in Arkansas. The state has earned 5th position in the Nationwide index for cost of living and 8th rank for business tax climate.
- ArkPlus – Qualified businesses can get an income tax credit of up to 10% of the total capital investment under ArkPlus for specific projects. Depending on the employee payroll, the companies get qualified for the program.
- Advantage Arkansas Credit – Under this program, an income tax credit of up to 4% of the new-hire employee payroll can be received. This kind of credit will be available only if your company or business can generate full-time jobs in the state.
- InvestArk – Under this program, qualified companies can enjoy up to 7% of the total project expenditure as a credit. The LLCs, in this case, have to operate from within the state for at least a couple of years. This tax credit falls under Sales Taxes, and they are non-refundable taxes. Read more on Arkansas’ classification of LLC tax.
If your LLC has unused credits in Arkansas, it will be carried forward to the next year. For up to 9 years, the unused credits will be carried forward.
Removal of Unwanted Partners
According to the Arkansas LLC Act, filing members’ names are not mandatory at the time of formation. However, it is needed at the time of submitting the Annual Report, which is kept confidential. In this situation, even if the LLC agreement does not prohibit any member from participating, it does not allow them to participate as well. That means if the assignor wants, he/she can remove any partner without any hassle.
It is easy and cost-effective to start an LLC in Arkansas. Especially with so many benefits, you can smoothly start and operate LLC in Arkansas.
Best Business to Start in Arkansas
Are you about to form an LLC in Arkansas, then you must be known to the best and most profitable niches of Arkansas? If no, then you should go through the below-mentioned information to know the most profitable businesses.
The first niche that is contributing the most to the Arkansas GDP is poultry. Arkansas is known as the rural state of the United States Of America, due to which the opportunity of this farm-based business is very high. Arkansas is known to deliver poultry-based products to most of the country’s states and nearby countries also. If someone is interested in living in remote areas and wants to work on farms, then this is the best option.
The next business is the agricultural business which is also one of the biggest farm-based businesses. The crops grown the most in Arkansas state are soybean, corn, millets, sorghum, wheat, cotton, etc., which are required for a healthy human diet. The industry has many businesses established, but the increasing demands make more business spaces enter the field and show their talents.
Along with producing these products, there is an option of opening up a manufacturing unit where one can process this raw material. It will increase the value of raw grains from a customer point of view and profits from a business perspective.
Construction Equipment and Machinery
The construction business is also on a hike in Arkansas state. Those who don’t know the fact should know that Arkansas is the first producer of construction equipment used for heavy-duty work and is still a milestone in the field. That is why people still trust the machinery made in Arkansas, making it a profitable business option.
Some small business opportunities an individual can grab are:-
- Digital businesses (Home-based)
- Restaurant business
- Daycare services
Arkansas LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Arkansas. Click on the steps in this list to read the full detail.
- Name your Arkansas LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Arkansas, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services like NorthWest Registered Agent to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming an LLC in Arkansas. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Arkansas but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
How Fast Can I Form an LLC in Arkansas
If filing via mail, Arkansas LLC takes about a week to process. Filing through mail may take upto 48 hours only. The whole process can be expedited by hiring professional online services.
The best way to determine how fast you can form an LLC in Arkansas is to look at the requirements for this type of entity in the state. In most states, you must obtain a federal tax ID in order to open a bank account, and Arkansas is no exception. The only requirement that varies is the type of management structure. An LLC can be managed by one person or several managers, or it can be member-managed.
To form an LLC in Arkansas, you must choose a name that is legally available. It is easy to check if a name is available in Arkansas by searching on the Secretary of State website. An LLC must have a street address, even if it is located outside of the state. You can also reserve a name for 120 days before filing documents. To do this, go to the Secretary of State’s website and click on “Business Entity Search.”
Generally, forming an LLC in Arkansas takes about a week by mail or 48 hours if you file online. However, this depends on various factors, such as whether you’re using an online filing service or hiring a professional. Before you file your paperwork, make sure to create an operating agreement. This document will describe how the business will operate and minimize potential conflicts in the future. Having an operating agreement is highly recommended for your Arkansas LLC formation.
Before filing your paperwork, you should search the state’s website for an approved business name. Some words are prohibited in business names. Words that suggest affiliation must be avoided in the name, such as “lawyer” or “medicine”. It’s also a good idea to set up an email address and buy a domain name. You’ll be able to use it for your website and email addresses, and register your company’s name in your name.
Once you have a name, you need to select an Arkansas registered agent and register it with the state. The name of your Arkansas LLC must be unique and not already used by another business or formed entity. Incfile provides a free business name search tool to assist you with this step. Once you’ve chosen a name, you’ll need to add the words “Limited Liability Company” to the name. You’ll also need to select a name for the business, such as “SunDoc.”
An Arkansas LLC must file annual reports and arrange for unemployment insurance tax. In addition, it needs to file for sales tax. Fortunately, these aren’t difficult tasks if you know how to file properly. Using a registered agent service ensures that the state forms and instructions are filed on time. You can also pay for the service using a credit card. It’s a great way to keep track of the annual reports.
In Arkansas, you can file an LLC online or by mail. The filing fee for an LLC in Arkansas is $50. Be sure to determine whether you’ll be a member-managed or a manager-managed company before filing. You’ll find more information about the Arkansas LLC process in the Certificate of Organization guide. You can expect your LLC to be processed in 48 hours when you file online and one week if you mail your documents.
If you are a resident of Arkansas, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $50 (domestic LLC) and $270 (foreign LLC), LLC costs in Arkansas include $150 for Annual/Franchise Reports every year. LLCs are liable to pay sales tax of 6.5% every year.
It takes 48 hours to get an LLC in Arkansas if you file it online. For the mail filing, it takes 7 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend Tailor Brands which has impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report and pay $150 to the Arkansas Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Arkansas Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start an LLC in Arkansas at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.