Are you an entrepreneur looking to start a business in Arkansas? One step that many take is forming an LLC, but knowing how to file the paperwork may be what’s holding you back.
Here, we’ll provide an overview of what filling out the Arkansas LLC Certificate of Organization looks like, as well as tips on making sure everything goes smoothly so that you can get started!
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Filling out the Arkansas LLC Certificate of Organization in 9 Steps
The Certificate of Organization (referred to as the Articles of Organization until the end of 2021) is the document that officially creates your Arkansas LLC. They are filed with the Arkansas Secretary of State and include basic information about your LLC, such as its name, address, and purpose.
The Certificate of Organization can be completed and sent by mail or filed online. To get started, either download the Arkansas LLC Certificate of Organization Form LL-01 (Domestic) or file it online with the Arkansas Secretary of State.
Let’s go over how to fill out and file the online LLC Certificate of Organization in Arkansas.
Step 1: Select Filing Act
The first section requests you to select the filing act of the LLC. This is easy because there is only choice – Filing Act 1003 of 1993, which applies to most L.L.C.s.
Step 2: Pick a Name for the LLC
The next step in filling out the LLC Certificate of Organization is to select a name for your business. Every LLC name needs to be unique from other registered LLCs in the state.
If you aren’t ready to file, you can do an Arkansas LLC name search with the Arkansas Secretary of State to be sure the LLC business name you want is available.
When filling out the business name information, be sure to include the entity designator, which is displayed at the end of the business name. The allowed designator can either be Limited Liability Company, Limited Company, or the abbreviation L.L.C., L.C., LLC, or LC. The word Limited can be abbreviated as Ltd. and the word Company may be abbreviated as Co.
LLCs that perform professional services must instead use the words Professional Limited Liability Company, Professional Limited Company, or the abbreviations P.L.L.C., P.L.C., PLLC, or PLC.
Step 3: Enter the Principal Information
Enter the principal place of business and contact information for the LLC.
The address may be the actual place of the business, but it is not required to be. It can be the main location where the business records are kept. A physical address must be used, as P.O. Boxes are not acceptable.
Step 4: Appoint an Arkansas Registered Agent
An Arkansas registered agent is a person or entity authorized to receive and accept service of process on behalf of your LLC.
All Arkansas LLCs require a registered agent, who must be available during normal business hours at a physical address in the state. Provided you, as the owner, live in Arkansas and are available at a specific address, you can be the LLC’s registered agent. You can also authorize an individual outside of the LLC or choose to pay a registered agent service to act as the registered agent to keep your name and address private.
Step 5: Select the LLC Organizer & Officers
Add the contact information for the organizer and officers in this section.
If there are multiple officers, enter their information and click on Save Officer.
At least one member will enter their information, which may be the same person in the Principal Information and Registered Agent section.
One area that is a bit confusing is the title. Choices include:
– Incorporator/Organizer – A limited liability company organizer is someone who is involved in the formation of a business entity. This person may or may not become a member, such as a mentor, attorney, or accountant.
– Manager – A manager, in this instance, is someone who the LLC members will hire to run the business, similar to a CEO of a corporation. This isn’t a common selection; if a manager is selected, a statement must be included in this section.
– Member – The members will be listed here. All of the initial members will also be saved as Incorporator/Organizers.
Step 6: Enter the Submitter’s Contact Information
The submitter’s contact information would be used in case the Arkansas Secretary of State has any questions regarding the filing and is the address where the final documents should be sent.
Step 7: Enter the Annual Report Contact Information
Enter the contact information of the place where the annual reports should be sent. This may be the same information as the previous steps.
Step 8: Sign the Arkansas Certificate of Organization
The organizer’s signature (Step 5) will be entered in this section.
Additionally, the effective date of the LLC formation can be selected. By default, the effective date is the date the state approves the Certificate of Organization. If you want to file the certificate before starting the business, you can choose a date of up to 90 days in the future.
Step 9: Review and Pay
Review the submitted information to ensure it is correct, and if so, submit the Certificate of Organization and payment to the Arkansas Secretary of State.
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Arkansas LLC FAQs
What does an Arkansas LLC cost?
The state filing fee for the Arkansas LLC Certificate of Formation is $45.
How long does it take to form an Arkansas LLC?
It normally takes 2-3 business days to process online LLC filings in Arkansas and 2 weeks for mailed filings.
What is an Arkansas Professional Limited Liability Company?
Businesses that require state licensing, such as accountants, attorneys, podiatrists, physical therapists, acupuncturists, etc., often must file as a Professional Limited Liability Company (sometimes referred to as a Professional LLC or PLLC) instead of an LLC. Filing for a PLLC is very similar to filing for an LLC.
Do you have to renew your LLC every year in Arkansas?
Every year, on May 1st, every Arkansas LLC must file the Annual Franchise Tax Report and pay the Arkansas franchise tax.
Does Arkansas require an LLC to have an operating agreement?
Arkansas Statute § 4-38-105 states that every Arkansas LLC may adopt an operating agreement, which isn’t required. Although it isn’t required, it is recommended that most LLCs have one, as it can help prevent disputes among members and better protect the LLC’s legal status.
The LLC operating agreement is an internal document outlining the entity’s governing structure, operating guidelines, and members’ responsibilities. It’s worth noting that an operating agreement is binding on the LLC even if the business has not formally adopted it. Any LLC member can create a binding operating agreement.