How to Set Up an LLC in Arkansas

We’ve put together a free step-by-step guide on how to set up an LLC in Arkansas. We want you to have a clear idea of how to set up and manage an LLC for your state. We’ve tried to make sure you have the information you need right at your fingertips. Each step has instructions and links to the sites for you to fill out the forms in the correct order. So, let’s set up your Arkansas LLC right now! 

A few points to remember before setting up your LLC in Arkansas

When you set up an LLC in Arkansas you’ll need a few things before you get started.  This section will help you get your checklist in order.

A Unique Business Name 

Every business in the state must be unique. You’ll need to search for an Arkansas LLC name. Go to the Search Incorporations, Cooperatives, Banks and Insurance Companies page to make sure yours is not taken. 

An LLC Designator 

Once you’ve chosen a unique business name you’ll need to decide on your LLC designator.  When you set up your LLC in Arkansas.  You can chose one of the ones below.

• LLC (most common) 
• L.L.C. 

A Registered Agent 

In most states, a registered agent is a person or a company that accepts “Service of Process” for your Arkansas LLC. A registered agent will receive any subpoenas, notices, and other legal, and tax documents sent to your business by the Arkansas Department of Finance and Administration. 

If you’re opening a business in Arkansas but you aren’t a resident, you’ll need to get a registered agent in that state.  The requirements for a registered agent are as follows: 

An Individual: 

• Must be 18 and be a resident of the state 
• Must be authorized to do business in the state. 
• Must have a physical street address located in Arkansas

A Company 

• Must be authorized to do business in the state 

If you meet the above criteria, you can be your own registered agent. Or you can set up a friend or family member to be your registered agent. 

You can also hire a commercial Registered Agent. A company that provides their name and address to receive legal documents from the state. 

Step 1: Reserve Your Business Name

To Set up an LLC in Arkansas you need to reserve your business name.  This way during the process no one can steal the name of your company. 

You’ll need to reserve your name at the  Arkansas Secretary of State or by mail.  

Step 2: File Your Articles of Organization for a Domestic LLC in Arkansas

Setting up an LLC in Arkansas is easy, especially for single-member LLCs. Just go directly to the Corporate Online Filing System.    

You can do the name reservation and the Article of Organization at the same time.  Easy peasy.  

If you don’t want to file online, you can download and fill out the Certificate of Organization here. If processed by mail it will take 1-2 weeks. If online it will be 2-3 days.  

Fees: In Arkansas the cost of setting up your LLC and filing the Certificate of Organization is $50.00.  If you file online the cost increases to $45.00. 

Step 3: Complete Your Alabama LLC Operating Agreement 

An operating agreement is a key document used by LLCs, and partnerships. It outlines the business’ financial and functional decisions including rules, regulations, and provisions. This describes how your LLC will operate internally. For more information on operating agreements, you can check out the Small Business Administration’s article on basic operating agreements. 

Step 4: Get Your Federal Tax ID Number (EIN) 

Once your Arkansas LLC has been approved it’s time to get your Federal Tax ID Number from the IRS.   

Your EIN is the social security number of your business.  Keep it well protected.  You’ll use this number to open bank accounts, file tax documents, apply for loans and many other uses.  It also protects your social security number when doing business with other businesses like merchant accounts, 1099s received etc. 

To apply for your EIN you can go to IRS EIN/Tax ID Application.  Make sure you pick the correct Business Entity Type.   

Taxes, Permits, and Licensing in Arkansas

Your LLC in Arkansas must file and pay an Annual Franchise Tax Report of $150 every year to keep your business compliant. You can file online or by mail here.  

Make sure to file your Annual Franchise Tax Reports annually otherwise, your LLC will be charged with a penalty and interest. 

Aside from business licenses and permits, all LLCs must also pay appropriate taxes and meet obligations with the Arkansas Department of Finance and Administration.   

Putting it All Together

Now that you can set up an LLC in Arkansas online it shouldn’t take more than a day or two to get up and running.  The Arkansas Secretary of State’s website is very easy to navigate and following the five steps above will help you get your talents and ideas to market faster.