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How to Start an LLC in Arkansas (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

Forming a limited liability company (LLC) in Arkansas can be an excellent way to structure your small business while limiting personal liability. However, like most legal matters, the process comes with its fair share of nuances and requirements. This comprehensive guide breaks down the necessary steps to successfully form your Arkansas LLC from start to finish.

Choose and Register Your Arkansas LLC Name

The first order of business when starting an LLC in Arkansas is to decide on a business name. This may seem simple, but there are a few key naming guidelines and conventions you need to follow:

Naming Requirements

First, your LLC’s name must include the phrases "limited liability company," "limited company," the abbreviation "L.L.C.," "LLC," "L.C.," or "LC" somewhere in the full name. You also can’t use restricted words like “bank” or “trust” without special permissions.

Additionally, your business name needs to be distinguishable from other companies registered in Arkansas. You can search the Secretary of State database to see if the name you want is taken. If it’s too similar to an existing name, you may be able to differentiate by adding unique words, services offered, locations, etc.

Trademark Considerations

Before settling on a company name, it’s also smart to see if someone has already trademarked it. Check the USPTO’s federal database along with Arkansas’ state trademark registrations. Additionally, conduct online searches to catch any common law trademarks that haven’t been officially registered.

Name Reservations

If you’ve found the perfect LLC name but need more time before registering, you can reserve it for 120 days by filing Form RN-06 and paying a $25 fee.

DBA Filing

If in the future you’ll be doing business under a different name other than your formal LLC name, you’ll need to file for a "fictitious name" also known as an assumed business name (DBA).

Appoint Your Registered Agent

All LLCs formed in Arkansas must designate a registered agent, which is a person or company that agrees to accept service of process and official notices on behalf of the LLC. Your registered agent must have an in-state physical address (not a P.O. box) and be available at that address during normal business hours.

You have the option of serving as your LLC's registered agent yourself or designating another individual or hiring a professional service. Using a registered agent service can make things easier by ensuring you don’t miss important notices that get sent to your business.

File Your Certificate of Organization

To officially register your LLC with the state of Arkansas, you’ll need to file what's known as the Articles of Organization. This document must include:

  • Your LLC's name and address
  • Registered agent’s name and address
  • List of members/managers
  • Signatures of organizers

You can submit this filing online for $45 or through mail with a $50 check. Getting every detail right is crucial, but you can make amendments later if needed for an additional $25 fee.

LLC Management Structure

As part of filing your Articles of Organization, you'll need to designate whether your LLC will be member-managed or manager-managed. Member-managed means that all members can participate equally in operating decisions. With manager-managed, you appoint certain members or hired managers that have decision-making and operational control.

Create an Operating Agreement

While an operating agreement isn't legally required in Arkansas, having one is strongly recommended. This document outlines all the rules and regulations for how your business will run. It also helps show your LLC is a real separate entity should you end up in court.

Even if you are a single-member LLC, having an operating agreement makes things easier if you ever decide to bring on more members or sell the company down the road. It also gives investors confidence in how thoughtfully you’ve set things up.

Obtain an EIN

Nearly all new LLCs need to get an Employer Identification Number (EIN), which serves as a unique tax ID number from the IRS. Even single-member LLCs without employees should obtain one because banks typically request it to open a business bank account. Getting an EIN is free and simple on the IRS website.

Open a Business Bank Account

Keeping your business financial transactions separate from your personal banking activity is a legal requirement for LLCs. So take your approved Articles of Organization, operating agreement, and fresh EIN to open a dedicated business bank account. Multiple signees may need to provide an LLC resolution to open an account.

For more information, take a look at our article on the key benefits of business checking accounts.

Understand On-Going Compliance

Congratulations, the initial formation process is complete, but keep in mind that LLCs incur annual maintenance requirements to stay compliant in the state.

For instance, all LLCs must file and pay a $150 franchise tax each year, which essentially serves as Arkansas’ annual report for your business. You could face penalties and interest if you miss the May 1 deadline to complete this franchise tax report.

Additionally, pay careful attention to any business licenses, operational permits, sales tax collection procedures, income taxes, employment taxes, and other legal obligations related to running your business. Consider meeting with an accountant to develop a tax strategy as well. Staying compliant may seem tedious but doing this properly will save you headaches down the road.

Tips for Next Steps

Forming an LLC is a huge accomplishment, but don’t lose momentum! The real work begins now that all your legal ducks are in row. Here are a few closing tips:

  • Order professional branded materials like business cards and stationery with your official LLC name.
  • Set up accounting software to manage invoices, expenses, taxes, payroll and more in an organized fashion right from the start.
  • Develop a business plan if you don’t already have one to clarify your strategy and financial projections.
  • Consider an online presence like a company website or social media profiles to elevate your brand.

We hope this guide gives you confidence in how exactly to start an LLC in Arkansas. While the various rules and bureaucratic red tape may seem tedious, forming an LLC is worth it. Taking these steps carefully at the outset will set your business up for operational and legal success down the road. Don’t hesitate to consult a lawyer or accountant for guidance as well. Best of luck as you pursue your entrepreneurial dreams!

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

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**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

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