Like every other state in the United States, starting an LLC requires that several things be put in place, and some requirements are met.
If you are looking for the best guide on how to start an LLC in Arkansas, this piece is the best you can find. Stay glued to the end.
How to Start An LLC in Arkansas
To start an LLC in Arkansas, you must file your Certificate of Organization with the Arkansas Secretary of State.
You can also apply online, by mail, or in-person for $50.
The Certificate of Organization is the legal document that officially establishes your Arkansas limited liability company.
Steps to Start an LLC in Arkansas
Starting an LLC in Arkansas with this itch-free with these five easy steps:
- Name Your Arkansas LLC
- Choose a Registered Agent
- File the Certificate of Organization
- Create an Operating Agreement
- Get an Employer’s Identification Number (EIN)
However, if you feel these steps are overwhelming, you can hire a professional service to pull through the steps for you.
Name Your Arkansas LLC
The first thing to do is choose a company name for your LLC in Arkansas.
Ensure to choose a name that conforms with Arkansas LLC naming requirements. Also, make sure the name is short, describable, and easy to remember.
However, when choosing a business LLC’s name, it must contain the word line: Limited Liability Company, LLC; or L.L.C.
In addition, you must consider the following:
- Your business name must include ability company” or its abbreviations (LLC or L.L.C.).
- Ensure that your name is distinguishable from any other Alaska limited liability company, corporation, limited partnership, or registered limited liability partnership business name. Ensure the name you desire isn’t already taken by doing a Business Entity Search on the Alaska Secretary of State’s website.
- Ensure to Reserve the name once you find the availability: You must complete the Name Reservation Request for Domestic Entities form at least two weeks before registration or reserve your business name when completing the online LLC registration.
- Consider if the URL is available: Check online to see if your business name is known as a web domain. If it is, you may want to buy the URL to prevent others from acquiring it.
Choose a Registered Agent in Arkansas
After carefully selecting the best name for your business, you are required to nominate an Arkansas registered agent for your LLC.
A registered agent is an individual or business entity responsible for receiving important tax forms, legal documents, a notice of lawsuits, and official government correspondence on behalf of your business.
However, your registered agent must be a resident of Arkansas or a corporation. It could be authorized to transact business in Arkansas, or you may elect an individual within the company, including yourself.
File the Arkansas LLC Certificate of Organization
You must file Form LL-01 – Certificate of Organization with the Secretary of State to register your Arkansas LLC.
How to file the Certificate of Organization
You can file your certificate of organization in two ways which are:
- Through Arkansas SOS Corporations Online Filing System
- By Email or by person
Through Arkansas SOS Corporations Online Filing System
- Visit the Arkansas SOS Corporations Online Filing System
- Select “Certificate of Organization for Domestic LLC – LL-01”
- Select “Start Form”
By Email or by person
Arkansas Secretary of State
1401 W. Capitol Ave.
Little Rock, AR 72201
The State Filing Cost is a nonrefundable fee of $50, payable to the Secretary of State.
Create an Arkansas LLC Operating Agreement
Even though an operating agreement is not required for an Arkansas LLC, it is recommended for all LLCs to have one.
An operating agreement is a legal document stating the ownership and operating procedures of an LLC.
They contain comprehensive operating agreements that ensure that all business owners are on the same page and reduce the risk of future conflict.
Get an Arkansas LLC EIN (Employer Identification Number)
An Employer Identification Number is a nine-digit number assigned by the Internal Revenue Service (IRS) to help specify businesses for tax purposes.
It is like a Social Security number for a business.
It is sometimes referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).
The Employer Identification Number is required to:
- Open a business bank account
- File and manage federal and state taxes
- Hire employees
However, you can get an EIN free from the IRS online or by mail.
What To Do After Forming an LLC Arkansas
After following the steps above to set up your LLC business, you need to separate your personal and business assets.
Here are some of the things you should do after forming your business.
Opening a Business Account
You need to separate your assets from your company’s assets, which is essential for personal asset protection.
Getting a business credit card
A business credit card helps to separate all business expenses for end-of-year tax goals.
It also allows you to keep track of department expenses by issuing multiple cards (with various budgets) to your employees.
Hire a Business Accountant
A business accountant makes bookkeeping and payroll easier, which leaves you with more time to focus on your growing business
He also manages your business funding effectively, discovering areas of unforeseen loss or extra profit
Get Business Insurance
Business insurance helps you oversee risks and focus on growing your business.
Here are some of the most common types of business insurance are:
- General Liability Insurance: It is a broad insurance policy that protects your business from lawsuits.
- Professional Liability Insurance: It is business insurance for professional service providers that covers malpractice claims and other business errors.
- Workers’ Compensation Insurance: This type of insurance provides coverage for employees’ job-related illnesses, injuries, or deaths.
All businesses in Arkansas with three or more employees must have workers’ compensation insurance.
Other things Requirements for LLC in Arkansas
- Create Your Business Website
- Send Out a Press Release
- Keep Your Company Compliant
You can visit the Arkansas SOS corporation to read more.
To form an LLC in Arkansas requires that you: choose a business name following the naming guidelines.
More so, you must follow the registration procedures, which include filing Articles of Organization and publishing a Notice of LLC Formation.
Register for state tax online and obtain the state and local business licenses.
We hope you find this guide on how to start an LLC in Arkansas helpful.