Time Required for LLC Formation
It takes 2-3 business days to form an LLC in Arkansas online and by mail. In-person or drop-off filings take 1 business day.
Steps to Form an Arkansas LLC
There are 4 crucial steps to get an Arkansas LLC formed:
- Decide a name
- Appoint a registered agent
- File formation documents
- Create an operating agreement
Professional services are available to ensure proper LLC formation.
Annual Requirements and Additional Filings
To renew an Arkansas LLC each year, a $150 Annual Franchise Tax report must be filed.
Removing a member from an Arkansas LLC requires a process, as does adding a DBA, which involves an application accompanied by the DBA filing fee and a certificate of good standing.
Most Arkansas LLCs with multiple owners or employees need an EIN for administrative tasks like opening bank accounts or hiring employees. Getting an EIN takes about a week by mail or can be instant with online services.
Costs and Considerations
The cost of forming an LLC in Arkansas includes a $50 filing fee for the Articles of Organization and the $150 annual franchise tax.
Understanding the different types of business licenses and their requirements, like a General Business License, is important for compliance with state regulations.
Taxation
LLC owners in Arkansas are taxed at a 15.3% federal self-employment tax rate plus the individual tax rate, and all LLCs must pay the annual Franchise tax of $150.
When filing taxes, the government uses the EIN to identify ownership and income for proper taxation.