Arkansas LLC

This complete guide explains how to start an LLC in Arkansas, covering everything from choosing a compliant business name to filing required documents and maintaining your company in good standing.

1. Name Your Arkansas LLC

Choosing a business name is often one of the most challenging steps when forming an LLC. Your name should clearly reflect your business activities, be memorable, and meet Arkansas's legal requirements.

Ways to Choose a Business Name

You can approach the naming process in several ways:

Define Your Business Idea: Before choosing a name, clearly understand what your LLC will do.
Ask for Input: Get suggestions from people you trust who understand your business vision.
Search Online: Check domain availability and look for businesses with similar names that could cause confusion.
Use Business Name Generators: These tools can spark ideas, but they should supplement—not replace—your own judgment and creativity.

Your business name represents your brand and is often the first impression customers have, so it's worth taking the time to choose carefully.

Check Name Availability in Arkansas

Once you've narrowed down your name choices, perform a name search using the Arkansas Secretary of State's business entity database. Be sure to check for similar names, not just exact matches, since Arkansas requires business names to be distinguishable.

Arkansas LLC Naming Rules

Your Arkansas LLC name must:

Include "Limited Liability Company" or an abbreviation such as LLC or L.L.C.
Be distinguishable from all other registered business names in Arkansas
Avoid words that could cause confusion with a government agency

Check Federal Trademarks

After confirming state availability, search the U.S. Patent and Trademark Office (USPTO) database to ensure the name isn't federally trademarked.

Reserve Your Arkansas LLC Name

After confirming availability, you may reserve your LLC name with the state.

How to Reserve a Name:

Visit the Arkansas Corporations Online Filing System
Navigate to the Domestic LLC section
Select Application for Reservation of LLC Name (LLC-05)
Complete the form, review your entries, and submit with an electronic signature

Paper forms are also accepted if you prefer to file by mail.

Fees & Reservation Period:

Online name reservation fee: $25
Reservation duration: 120 days

Doing Business As (DBA) / Fictitious Name

If you plan to operate under a name different from your LLC's legal name, you must register a DBA, known in Arkansas as a fictitious name.

Common Reasons to Register a DBA:

Expanding into additional product or service lines
Accepting payments or opening bank accounts under a different business name

Example: "JJ's Waffles LLC" may register "JJ's Muffins" as a fictitious name.

How to Register a Fictitious Name:

Download the Application for Fictitious Name from the Arkansas Secretary of State
Submit the form with the required filing fee (typically $25)
File a copy with the County Clerk where your LLC's registered office is located

2. Select a Registered Agent

Arkansas law requires every LLC to appoint a registered agent to receive legal documents, tax notices, and official correspondence.

Registered Agent Requirements

The registered agent must:

Be at least 18 years old
Have a physical street address in Arkansas
Be available during normal business hours
Be authorized to operate in Arkansas if the agent is a business entity

You may serve as your own registered agent, but many business owners choose professional services for convenience, privacy, and compliance reliability.

3. Determine Your Management Structure

Arkansas LLCs can be structured as either:

Member-Managed LLC

Members handle day-to-day operations
Best suited for small LLCs with actively involved owners

Manager-Managed LLC

One or more managers oversee operations
Members may be passive investors
A member may serve as a manager only alongside a non-member manager

If no management structure is specified in the Certificate of Organization, Arkansas defaults the LLC to member-managed.

4. File the Certificate of Organization

To officially form your LLC, file a Certificate of Organization with the Arkansas Secretary of State.

Information Required

LLC name
Principal office address
Registered agent name and address
Organizer contact details
Submitter contact information
Annual report contact information

Arkansas simplifies the process by allowing all required information to be entered on a single online form.

Filing Fees & Processing

Online filing fee: $45
Mail filing fee: $50
Online approvals typically take 1–2 business days
Mail filings may take up to two weeks

Arkansas Secretary of State Contact Information

Business & Commercial Services (BCS)
Victory Building
1401 W. Capitol Avenue, Suite 250
Little Rock, AR 72201

Phone: 888-233-0325 or 501-682-3409

5. Draft an Operating Agreement

An Operating Agreement outlines ownership, management authority, and operating rules for your LLC.

Arkansas does not legally require an operating agreement, but having one is strongly recommended, even for single-member LLCs.

Common Operating Agreement Sections

LLC name and principal address
Duration of the LLC
Registered agent details
Ownership and membership information
Management structure and voting rights
Profit and loss allocation
Member changes and amendments
Dispute resolution procedures
Record-keeping and communication rules

Although templates are available online, having an attorney review the document can help avoid future disputes.

6. Get Your Employer Identification Number (EIN)

An EIN is issued by the IRS and is used to identify your LLC for tax purposes.

You must obtain an EIN if:

Your LLC has more than one member
You plan to hire employees

When applying, the IRS requires identification of a responsible party, who must be an individual with control over the LLC's finances and operations.

7. Obtain Business Licenses and Permits

Depending on your business activities, you may need licenses at the federal, state, and local levels.

Possible Requirements

Federal licenses for regulated industries
State licenses through Arkansas professional licensing agencies
Sales tax permit if selling taxable goods or services
City or county business licenses

Operating without required licenses can result in fines or penalties, so thorough research is essential.

8. Determine Your Tax Status

By default, LLCs are treated as pass-through entities, meaning the business itself does not pay income tax.

Default Tax Treatment

Single-Member LLC: Taxed as a sole proprietorship; income reported on Schedule C
Multi-Member LLC: Taxed as a partnership; income passed through via Form 1065

Optional Corporate Elections

C-Corporation: LLC pays corporate income tax; dividends taxed to owners
S-Corporation: Owners receive a reasonable salary subject to payroll taxes, while remaining profits avoid self-employment tax

LLC Overview in Arkansas - Additional Requirements

Open a Business Bank Account

Separating personal and business finances helps preserve liability protection and simplifies accounting.

Apply for a Business Credit Card

A business credit card helps establish business credit and manage startup and operational expenses.

Get Business Insurance

Common insurance types include:

General liability
Professional liability (E&O)
Workers' compensation
Property and equipment coverage
Commercial auto
Business Owner's Policy (BOP)

Maintain LLC Records

Keep copies of:

Certificate of Organization
Operating Agreement
Licenses and permits
Contracts and financial records

File Franchise Tax / Annual Report

Arkansas LLCs must file an Annual Franchise Tax Report and pay a $150 franchise tax each year by May 1 to remain in good standing.

Arkansas LLC FAQs

Starting an Arkansas LLC includes a $25 name reservation fee, a $45 online or $50 mail filing fee for the Certificate of Organization, potential DBA fees, business license costs that vary by location, and a required $150 annual franchise tax.

Online filings are usually approved within 3–7 business days. Mail filings may take 4–5 weeks. Arkansas does not offer expedited processing.

Use the Arkansas Secretary of State's Business Entity Search tool. Enter the business name (without "LLC") to check availability or review existing filings.

File an Application for Fictitious Name with the Secretary of State, pay the filing fee, and submit a copy to the County Clerk where the LLC's registered office is located.

Arkansas LLCs must file an annual franchise tax report and pay $150. Additional obligations may include sales tax, payroll taxes, and federal income taxes at the owner level.

Maintain a registered agent, file the annual franchise tax report by May 1, pay the $150 tax, and keep business records current.

Yes, if you are at least 18 years old, have a physical Arkansas address, and are available during regular business hours.

No, Arkansas does not require an operating agreement, but having one is highly recommended to clarify ownership, responsibilities, and operating rules.

How to Start Your Own LLC in Arkansas