Form an Arkansas LLC
Arkansas LLC formation is our specialty. We can help you register your Arkansas LLC, the right way. We file the Arkansas LLC Articles of Organization with the Arkansas Secretary of State Corporations Division and prepare a customized operating agreement. We can also obtain the Arkansas LLC’s Taxpayer Identification Number (TIN also known as an EIN or Employer Identification Number), in an quickly as 24 hours.
Arkansas LLC Name
Arkansas LLC Name Registration: The first step in forming a Arkansas Limited Liability Company (LLC) is selecting the business name. Arkansas LLC names:
- Must contain with “Limited Liability Company,” “Limited Company,“ LLC,” “L.L.C,” “LC” or “L.C.”
- The name may contain the name of a member or manager.
- Must be distinguishable from the name of any domestic or foreign LLC, corporation, non-profit corporation, limited partnership, limited liability partnership on file with the Arkansas Corporation Commission.
An available name may be reserved for a 120-day period.
LawInc.com permits you to choose up to three names and will conduct a name search for your Arkansas LLC, prior to filing.
Arkansas LLC Formation
Arkansas LLC Filing Procedure: When forming a Arkansas LLC, Arkansas Articles of Organization must be filed with the Arkansas Secretary of State. The Arkansas filing fee is $50.
Arkansas LLC Publication: Arkansas LLCs have no publication requirement.
Arkansas LLC Organizers: An Arkansas limited liability company can be formed by one (1) or more individuals.
Arkansas LLC Members: Arkansas LLCs require 1 or more members. There is no residence or age requirement. Arkansas LLC members are not required to be listed in the Articles of Organization.
Arkansas LLC Duration: The period of duration of a limited liability company shall be perpetual unless the Arkansas Articles of Organization place a limitation on the company’s existence or until dissolution or termination.
Arkansas LLC Registered Agent: An Arkansas LLC must maintain a registered agent and office to receive service of process in Arkansas. The Arkansas registered agent should be available, at an Arkansas physical address, during normal business hours to accept important legal and tax documents on behalf of the Arkansas LLC.
Arkansas LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but an Arkansas LLC operating agreement should reference how the Arkansas LLC is managed, allocation of profits and losses and member capital contributions. The Arkansas LLC operating agreement does not need to be filed.
Arkansas LLC Post-Filing Requirements
Arkansas LLC Annual Report: The Arkansas Secretary of State requires that Arkansas LLCs file an annual franchise report every May 1st. The annual report costs $150.00 plus a $5.00 online transaction fee if filed online. Substantial penalties may apply after May 1. For more information, visit: https://www.ark.org/sos/franchise/index.php
Arkansas LLC Taxes
Arkansas LLC Taxation: Arkansas LLCs are classified for Arkansas tax purposes based on their federal income tax classification. The LLC tax rate for Arkansas is variable, depending on Arkansas taxable net income.
Arkansas LLC Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:
- Sole proprietorship
- Partnership, or
Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on Arkansas LLC net income must be paid just as you would with any self-employment business.
Most Arkansas multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, Arkansas LLC profits are reported and allocated to each of the owners according to the Arkansas LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all Arkansas LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.
If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.
Arkansas LLC Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the Arkansas LLC has more than one owner, or any employees.
Arkansas LLC Dissolution
Arkansas LLC Dissolution/Cancelation: In order to dissolve an Arkansas LLC, the members or managers must file Articles of Dissolution with the Arkansas Secretary of State. The fee for filing a Arkansas Articles of Dissolution is $50. The Arkansas Articles of Dissolution can be filed online.