In this guide, I will tell you, how to form an LLC in Arkansas.
You have a lot of options when it comes to how you structure your business. One great option is the limited liability company (LLC). An LLC is a hybrid of a corporation and a partnership.
It has some benefits for corporations, like limited liability and tax treatment, but it’s also easier and less expensive to form than a corporation. A downside is that LLCs don’t give you as many trademark or copyright protections as corporations do.
If you’re thinking about starting your own business, do your research on the different options and choose which type best suits your needs.
After selecting your business entity, you have to consider the state where you are willing to form an LLC.
In this in-depth guide, I will tell you how to form an LLC in Arkansas. For forming an LLC in Arkansas you have to follow five steps:
- Name your Arkansas LLC
- Hire a Registered Agent in Arkansas
- File an Arkansas Certificate of Formation
- Create an Operating Agreement
- Apply for an EIN
How to Form an LLC in Arkansas in 2022
Step 01: Name your LLC
The next step to form an LLC in Arkansas is to select the name of your LLC. The name of your LLC is essential in obtaining an EIN and opening a bank account in the U.S. for your business.
There are a few guidelines to follow when you are about to name your company:
- The company name must include the term-limited liability company or the abbreviations LLC / L.L.C.
- Specific terminologies like FBI, State Department, etc. they can mistake your LLC for the government agency. The use of such terms is forbidden.
- The use of restricted words like University, Lawyer, and Banks requires additional documents and an authorized person.
Step 02: Hire a Registered Agent
The next step to form an LLC in Arkansas is to appoint a Registered Agent.
A Registered Agent is a person or a company who receives all official mail and processing services on behalf of your Arkansas business. To keep your Arkansas business in good standing, you must maintain a registered agent in Arkansas, which we do for $ 99 per year.
They are required by law and must maintain a physical address and maintain regular opening hours. Since you do not live in the United States, these are requirements that you cannot meet.
Micahgutu Formation is best for this task. For Registered Agent service, we charged $99 per year, which is comprehensively cheap and more valuable than others.
Step 03: File a Certificate of Formation
In the next step, you have to file a Certificate of Formation which is known as Articles of Organization with the Arkansas Secretary of State which costs $50.
The Certificate of Formation must include:
- Name of your LLC.
- Name and Address of the Registered Agent of your LLC.
- Signature of an Authorized Person.
Step 04: Create an Operating Agreement
An Operating Agreement is a document which is sets out the rights and responsibilities of the members and managers of an LLC. If you do not have an Operating Agreement, state LLC law will govern the operation of your LLC.
An Operating Agreement is not necessary to form an LLC in Arkansas, but it’s highly advised to have one.
Step 05: Apply for an EIN
The next step to form an LLC in Arkansas is to apply for EIN. An EIN stands for Employer Identification Number. You will require an EIN to file and pay taxes and open a bank account.
Once the State of Arkansas has verified that your Articles of Incorporation (for Arkansas LLCs) or Articles of Incorporation (for Arkansas corporations) have been processed, you can apply for an EIN by completing Form SS-4 with the Internal Revenue Service (IRS).
The IRS accepts EIN requests online, by phone, or by mail. The form is one page and comes with lots of instructions.
You have two options to form an LLC in Arkansas:
To form an LLC in Arkansas yourself, you need to follow all the steps select a name for your LLC, hire a Registered Agent, file Arkansas Articles of Organization which costs $50, create an Operating Agreement, and apply for an EIN. Forming an LLC in Arkansas yourself can be difficult for you if you are completely unfamiliar with the system.
The second option to form an LLC in Arkansas is to use a professional service. There are many professional formation services available online but I recommend our Micahguru Formation.
We have a separate package for Arkansas which, includes Arkansas Filing Fees, Registered Agent Fee $99/year, Expedited Filling Services, Annual Report Services, Operating Agreement Template, (EIN) Employer Identification Number, Banking Resolution Template, Work-Free Compliance with 100% Accuracy Guarantee. For which we charge $249 and we take 7-11 business days.