Start Your Arkansas LLC

Set up your LLC without the hassle.
Click on “Get Started” so we can check
if your business name is available in Arkansas!

Arkansas LLC formation Woman at her bakery holding cookies

As recommended by our affiliate partners*

Desk trust

*our affiliate partners may receive financial compensation for their support.

Benefits of opening an LLC in Arkansas

There are many reasons to form an LLC in Arkansas. Here are the main ones:

Legal protection in case of bankruptcy or lawsuits

Separation of personal and business assets 

Tax benefits: flexibility & pass-through taxation

Increasing credibility and trust for your business

How to form your Arkansas LLC with Tailor Brands

Check if your Arkansas LLC name is available 

Choose a registered agent for your LLC

Sit back and let us take care of the paperwork for you

How to start an LLC in Arkansas in 5 steps

Starting a limited liability company (LLC) in Arkansas can have a range of benefits. In addition to the general asset protection and income tax advantages, Arkansas offers some unique incentives to open and run your business in their state.

For example, Arkansas offers tax credits for new businesses. Advantage Arkansas, for instance, gives corporate income tax credits to startup companies in Arkansas once they create new full-time jobs. The tax credit is up to 4% of a new employee’s payroll, and the credit can be claimed for up to 5 years. Unused credits can be carried forward for up to 9 years.

Arkansas also provides tax incentives for expansion projects of up to 10% for some businesses through “ArkPlus.” This program requires companies to meet specific payroll and investment requirements, but a 10% discount on an investment in Arkansas can result in huge tax savings. Sales and Use Tax Credits for new startups are also available.

These are just quick examples of the available incentives and tax savings for those who want to do business in Arkansas. To take advantage of these benefits, you have to get your business off the ground—and an LLC formation can be a great way to get that process started.

Starting an LLC in Arkansas requires these 5 main steps:

  1. Name your Arkansas LLC
  2. Choose a registered agent
  3. File articles of organization
  4. Create an operating agreement
  5. Apply for an EIN

You can learn more about each of these steps by reviewing the details below.

Step 1: Name your Arkansas LLC

Every business in Arkansas has the exclusive right to use the name of its business as soon as it is marked by the Secretary of State. However, a corporate filing with the Arkansas Secretary of State does not necessarily mean that your use of the name is allowed. If the name violates someone else’s trade name or trademark, it can cause significant legal problems. 

In general, names are required to be unique. You can do a business entity name search on the Arkansas Secretary of State’s website to ensure that no other company has a name that is the same or similar to what you want to use. 

In general, every LLC’s name in Arkansas must meet the following naming qualifications: 

Step 2: Appoint a registered agent

A registered agent must be designated when you file your Certificate of Organization, so you should choose your registered agent in Arkansas as part of the filing process. 

Your registered agent is someone who will accept official service on behalf of your LLC. They also often get mail from the State of Arkansas regarding updates that affect your LLC. This person (or entity) will receive formal service of process in the event that you get sued or have to receive legal notice for any other reason. 

Any registered agent in Arkansas must meet the following qualifications: 

A PO Box can never be listed as the registered agent’s address. 

You can also change your initial registered agent by filing a notice of change of registered agent information form. There is no fee to change your registered agent. 

Can I be my own registered agent?

You can be your own registered agent in Arkansas. However, you may not want to fulfill this role and request that another entity becomes your registered agent for you. You will often have to pay a fee for registered agent services, but there are some benefits to having someone else be your registered agent for you. 

For example, you might not want to be personally served with a lawsuit if your company gets sued. Being served can be embarrassing, especially if it occurs at work or in front of family and friends. In addition, your registered agent needs to be available during normal business hours, which might not always be possible if you work somewhere other than at your LLC’s location during the day or have other obligations aside from running and maintaining your LLC. 

Step 3: File articles of organization

Once you have made all the key decisions regarding your LLC’s name, you should draft and file the document that actually creates your LLC—the Certificate of Organization. Some states refer to this document as the Articles of Organization, but Arkansas uses the name “Certificate of Organization” for LLCs. 

Drafting and filing your Certificate of Organization marks the beginning of your LLC’s corporate existence in Arkansas. The original Certificate of Organization must be signed by all organizers, and the Secretary of State requires that the original be filed (instead of a copy). 

State fees

Filing your Certificate of Organization in Arkansas costs a total of $45.00, which includes $40 state filing fee and $5 processing fee. These filing fees are some of the lowest in the country for LLCs. 

If you decide to reserve your name ahead of time (which is not required), getting your LLC started in Arkansas can cost as little as $67.50 if you do all of your filing and applications online. 

If your LLC is already formed in another state and you want to do business in Arkansas, you need to submit an Application for a Certificate of Registration of Foreign Limited Liability Company. The fee for filing that document is $270.00 if done online or $300.00 if completed on paper and via mail. 

Requirements

Every Certificate of Organization filed in Arkansas is required to have very basic information about your new LLC. This information includes: 

It is important to note that the principal place of business for the LLC cannot be a PO Box. It has to be a physical address. In addition, the entity you are forming cannot be listed as the registered agent. The entity also cannot be its own organizer. 

You have the option to enter a delayed effective date for the LLC to be formed if you complete the application process online. The delayed date can be no more than 90 days from the date you file the application. 

How to file

The easiest way to file your Certificate of Organization is to use online filing. However, you can file via mail as well. You should send your completed Certificate of Organization to: 

Arkansas Secretary of State 
1401 W Capital, Suite 250 
Little Rock, AR 72201 

Be sure to include the $50.00 filing fee with the mailed application. 

Step 4: Create an operating agreement

An operating agreement is a corporate document that sets out how the LLC will be run. It includes the rights and responsibilities of all the members of the LLC. It will usually address matters such as: 

Having an in-depth and thorough operating agreement can help you avoid conflicts in the future. It also allows all owners to be on the same page about “big picture” items that can lead to disputes, such as income and management. 

Having an operating agreement is not required in Arkansas, but it is a good idea. Going through this process now with all the members can address a lot of conflicts before they become a real problem for your LLC. 

Is an operating agreement a must?

In most situations, you are not legally required to have an operating agreement for your LLC. 

However, if you have a series LLC, you are required to have an operating agreement. Specifically, you have to have a master operating agreement that, at a minimum, provides: 

Even though you need to have a master operating agreement, it does not need to be filed with the State.

Step 5: Apply for an EIN (Employer Identification Number)

If your LLC has more than one member, you are required to obtain an EIN. Even if you are the only member, it is still a good idea to get an EIN. An EIN is used as the tax identification number for your LLC. It is used to file taxes (if you opt to have your LLC taxed as a corporation) and provide tax information to your employees. 

Your EIN also allows you to take other actions that might not be available otherwise, including: 

It also adds to your business’s credibility as a whole, both with your employees and your vendors. 

You can apply online for an EIN. You can also apply via fax. Getting an EIN is free. 

Once you have a federal EIN, you do not need to do anything else at the state level to get an EIN; your EIN will be used for both state and federal income tax purposes. In general, once you apply, you will get your EIN in about 4 business days. 

Arkansas LLC Formation: The Basics

This step-by-step guide details the steps and requirements you need to name your LLC in Arkansas.

There are different costs to form an LLC in Arkansas and maintain it. We’ve listed all of them in this post.

LLCs in Arkansas are required to file an annual report with the state. Learn more to avoid penalties.

A Arkansas registered agent is a mandatory step in your LLC formation process – learn more about it.

Why is Tailor Brands the Best LLC Service in AR

At Tailor Brands, we love nothing more than helping people start their business. We take care of the LLC filing and offer additional services so you can focus on launching and growing your business, while staying informed and compliant with state regulations.

Here’s why people choose to form their LLC with us:

Easy and intuitive

Our products are user friendly, all you need to do is answer a few questions about your business and let us take care of all the rest.

Friendly dashboard

Our platform is easy to use and is optimally designed to guide you through your LLC formation process and business journey.

Additional services

We offer more products to help you set and manage your business like registered agent, business licenses, and annual report.

Real Tailor Brands reviews, from real business owners

For more reviews from our customers, visit our reviews page.

Start an LLC in Arkansas, Hassle-Free

This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.