If you are trying to form an Arkansas LLC, then take note that in this state, how to start an LLC requires having an Arkansas registered agent who will handle all official paperwork on the LLCs behalf.
On this page, you’ll learn about the following:
Arkansas Registered Agent Requirements
There are certain requirements to fill the role of an Arkansas registered agent:
- The nominee must be more than 18 years old.
- The individual must have a legal, physical address in the state where the LLC will operate.
- The individual must be physically present during normal working hours.
How to Choose a Registered Agent?
When you file your Certification of Formation in Arkansas, you must nominate a registered agent. You can either appoint an in-house registered agent (yourself or any LLC member) or outsource to an Arkansas registered agent service. You can elect your registered agent online through the Arkansas Secretary of State website.
Hiring an Inhouse Registered Agent
When hiring an in-house registered agent, make sure the individual is over 18 of age and lives in Arkansas.
Can I be My Own Registered Agent?
Yes, you can be your own registered agent. So long as you meet the basic requirements for a registered agent, then you can take on this role for your LLC.
Outsourcing a Registered Agent
You may, instead, get professional registered agent services. Doing so ensures that you will have the best individual to represent your business. Here are the best LLC services on our list that will provide you with registered agents to ease your worries.
Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
What to Consider when Choosing a Registered Agent
Here are some factors to consider when choosing a registered agent.
- Service Fee: Since most states require formal businesses to have registered agents, selecting the best-registered agent is critical. Hiring a registered agent service typically costs between $50 and $300 annually. When you consider how much time it will save you, this is a small price to pay.
- Tenure in Business of Registered Agent: You want the registered agent to have established and time-tested procedures for handling documents that are received.
- State Jurisdiction Limitation: If your company expands to another state, you should use the same registered agent in all states to reduce the administrative burden of dealing with multiple registered agent service providers.
- Offer Monitoring and Follow-up Services: You want to receive up-to-date information and alerts from your registered agent as soon as possible so that you are aware of the various statutes, rules, and regulations that apply to your company.
Alaska Business Laws for Registered Agents to Note
Registered agents are responsible to handle all the business laws and other legal issues related to Arkansas LLC. Every state has its own business laws. Arkansas is no exception. It has its own set of different business laws to follow. Here are some of the important business laws every business should follow.
- Arkansas Antitrust laws: Antitrust laws regulate and prevent anti-competitive practices in any open market by levying heavy penalties and punishment against such activities. These laws counter the formation of cartels, monopolies, or any barrier created for new entrants in the market. The Arkansas Antitrust laws prohibit any agreement in restraint of trade, price-fixing, quantity fixing, acquisitions executed to reduce competition in the market, and any unfair methods of competition. The time limit to bring in such claims is 5 years. The State allows a successful plaintiff to recover attorneys’ fees.
- Arkansas Deceptive Trade Practices Laws: The State of Arkansas aims to protect its residents from unfair business practices. Such practices mislead the consumers into investing in invaluable market products by selling them with twisted statements and lies such as false advertising. The laws specifically prohibit false advertising and odometer tampering.
The plaintiff can receive remedies such as injunction and reimbursement of money utilized for purchase, suspension of business permit of the accused, fine up to $10,000 per violation, attorneys’ fees reimbursement, and class A misdemeanour upon wilful deceptive trade practice.
- Arkansas Insurance Fraud Laws: The State restricts any activity wherein false statements or intentional misrepresentations are made to benefit from any insurance policy. Such activities constitute insurance fraud and are classified as a Class D felony punishable with imprisonment up to 6 years and/or fine up to $10,000 per violation.
Fraud laws prohibit any solicitation of insurance risk on behalf of an insurer, embezzlement of property from an insurer, transacting insurance business in violation of laws, counterfeiting insurance policies, destroying the assets/records of the insurer, etc.
- Arkansas Pyramid and Ponzi Schemes Laws: Any pyramid or Ponzi scheme is considered illegal in Arkansas as they are contrary to the public policy of the State. These schemes are deceptive in nature and participating in or organizing such activities is prohibited by the laws of the State. Some common examples include Mail and wire fraud, Commodities, lottery, and securities fraud. As per the statute of limitations, all prosecutions under this law must be initiated within 5 years of the violation. Such activities constitute a Class D misdemeanour, punishable with imprisonment up to 1 year and a fine up to $2500.
- Arkansas Interest Rate Laws: Every state in the United States has an Interest law for businesses. Normally, the general interest rate guidelines are less than the legal threshold of interest rate. Arkansas has laws to limit the interest rates and significantly high-interest rates are considered unlawful and open to criminal prosecution. The maximum legal interest rate is 5% above the Federal Reserve discount rate. The interest rate on judgments is fixed at 6% per annum. The penalty for usury can render such contracts in violation of the interest laws as void and the debtor may recover twice the amount of interest paid.
- Arkansas Wage and Hour Laws: The Employers in Arkansas must abide by the wage and hour laws of the State. The minimum wage is set at $8.50 per hour. Any employee who works for more than 40 hours in a week should be compensated with overtime pay which is 1.5 times the regular hourly rate. The minimum wage for tipped employees is $2.63 per hour, however, the tip must be earned sufficiently up to $7.50 state minimum.
Any employer found in violation of the laws shall be liable to civil penalties and action can be instituted to recover the full wage amount.
The Registered Agents are the people who act as points of contact between your business and the State Authorities. They assist your business in ensuring compliance with all regulations and codes of the State. Hiring a registered agent in Arkansas will help you handle your business in a smooth and legally compliant manner.
How to Remove a Registered Agent for LLC in Arkansas
A registered agent for LLC in Arkansas can be removed by submitting a Statement of Change form with Arkansas Secretary of State without any filing amount.
If you’re wondering “How to Remove a Registered Agent for an LLC in Arkansas?” there are a few steps you need to take. First, make sure your agent has resigned by following the proper procedures. This is extremely important, because failing to do so can put you in hot water and lead to you opening a new business in Arkansas. Once you’ve resigned your registered agent, you’ll need to find someone to replace him or her.
If you’re wondering how to remove your registered agent, the first step is to contact the Secretary of State’s office and ask for a copy of your business license. If you’re a foreign corporation, you’ll need to obtain a license to do business in Arkansas before you can act as an agent. In many cases, you can also remove a registered agent for an LLC by changing the name of the company’s corporate documents.
To remove your registered agent, you’ll need to file a Notice of Change of Registered Agent form with the state. You can file this form by mail, fax, or online. The change will be effective on the date you file the form with the state. To file a Notice of Change of Registered Agent, you’ll need the business name, the current registered agent, and the new registered agent. Make sure to follow the proper procedures when changing your registered agent, otherwise, you could face fines, penalties, and even individual liability.
A registered agent is an important component of running an LLC. This person has the responsibility of performing a number of tasks relating to the LLC. As a result, your LLC should have an operating agreement that clearly defines who can make decisions and who gets what share of the profits. Besides, you should also check whether your LLC has the right business licenses in Arkansas, as some states require that you keep accounting logs and financial records.
In order to avoid paying for the services of an Arkansas registered agent, you should compare the various options available. While some are cheaper than others, some may offer specialized assistance. LegalZoom’s registered agent service is one such option. For just 99$, you can have a fully functional registered agent for your LLC in Arkansas. This is the best option for small businesses in Arkansas, so don’t hesitate to use this service.
Another important consideration to make when deciding whether to remove a registered agent for your LLC is the availability of the name you wish to use. If you can’t decide between a registered agent and a business name, you can search the name for free through the Arkansas Secretary of State. Keep in mind that name reservations are not guaranteed until you file your documents. If you find the name you want, you must pay a fee to the Secretary of State.
Many companies will accept an SSN or an EIN number from the IRS as proof of identity. But this method can pose security issues. If someone were to obtain your EIN number and SSN, they could easily access your personal financial records. Additionally, it’s possible for someone to impersonate you. Moreover, taxes are another important part of running a business, and an LLC must pay them in Arkansas.
All corporations and limited liability companies doing business in Arkansas are required by state law to appoint an Arkansas registered agent. Arkansas registered agents provide a reliable way for the Secretary of State and state courts to contact a corporation or LLC.
A registered agent is simply a person or entity appointed to accept service of process and official mail on your company’s behalf who lives in the state of service and is over 18.
If you intend to be your own registered agent, you may be forced to use your home address (especially if you run a home-based or web-based business), making the address public.
Before you choose a registered agent for your Arkansas LLC, compare their price and services from the table. They will be responsible for all your documentation, filings, and other LLC-related tasks. Hence, choose the best one for your business that provides 100% accurate service at a reasonable price.