With the rapid technology development today, many people are thinking about starting companies or registering startups. If you are one of those people, we suggest considering a limited liability company.
The business type of choice will affect your organization’s whole working process. If you are an Arkansas resident, you will most definitely need to get acquainted with the LLC Operating Agreement Template in our guide, a great starting point in planning an enterprise.
Many individuals interested in running LLCs tend to have plenty of questions concerning the registration process. Therefore, we have decided to compile a comprehensive summary on creating an LLC operating agreement in Arkansas. Thie article contains such topics as:
Let us start by highlighting the agreement’s legal definition. It is a deal arranged between the LLC organizing parties characterizing the company’s management, including setting internal and external financial and operational matters.
The goals of this document include:
As we have previously mentioned, a general LLC template is needed if an individual or a group of people wants to establish a business entity. Managing such an entity requires careful planning and well-prepared documentation. Let us clarify an Arkansas LLC in legal terms.
You can find the definition of an LLC in the Arkansas Code (Chapter 4-32-102(11)). One can register such an entity with an Operating Agreement form. The form is very convenient and straightforward, but you should know what information to include in it. And to know that, you need to understand the operating agreement’s purpose.
This document’s main functions are to provide financial and tax profits (read the Small Business Entity Tax Act for more info) to its signatories and protect their personal property. Besides, the LLC members and their partners are not personally liable for the entity’s obligations, duties, or debts.
Yet another pleasant asset of this form is that you can store real estate, vehicles, watercraft, and even aircraft under an LLC jurisdiction. We suggest studying the Arkansas Code (Chapter 4-32-405) to get more familiar with the state Operating Agreement laws and peculiarities. This chapter of the Arkansas Code contains information concerning the member’s rights and duties.
Having covered the necessary laws and requirements, we can move on to the LLC founding agreement form’s contents. Below are the steps to take before proceeding to fill out the agreement template. If you are willing to fill out the form right now, you can use our advanced form-building software to generate the form (and any document you need).
1. Figure Out a Name for Your LLC
Picking the entity’s title and brand’s name is the most significant step to take. Select a name that complies with the Arkansas LLC naming requirements. Plus, ensure the chosen title is not used by any other existing entity and is distinguishable to potential customers.
We recommend following the naming rules below:
2. Apply for the Articles of Organization
The next step is to get the entity officially registered. You will need to obtain the Founding Articles for that. This document is a legitimate record that officially enlists and sets up your business entity. You are expected to provide the LLC’s name, list the services the company offers, assign the Registered Agent, and pay the state filing charge to get the Articles in the first place. You can apply for the document via the Internet, US mail, or face-to-face.
3. Nominate a Registered Agent
It is a common practice in most US states to assign a local (registered) agent to run the LLC’s day-to-day routine and resolve relevant legal business matters. You can hire an individual or another business subject that resides in the state to be your agent. The agent is responsible for all the company’s documents, reports, and official correspondence. Besides, the agent is supposed to be a mediator between the company and the state authorities.
If the agent is a single person, they must live in Arkansas and represent a specific organization, for instance, a Registered Agent Service. This organization should be allowed to execute business in Arkansas.
4. Prepare the Operating Agreement
A quick reminder: an operating agreement is a legitimate record that depicts the subject LLC’s financial and operational parts. An operating agreement isn’t an obligatory document in the state of Arkansas; nonetheless, it is a good idea to have it as a guarantee of your financial safety and security. It also reduces the trade risks of possible conflicts.
There are two types of Operating Agreements in Arkansas. One must choose an appropriate form to fill out:
5. Receive an EIN
You should contact the IRS to file for the Employer Identification Number (EIN). You will need this record when registering a business account, paying salaries, hiring new staff, or issuing corporate credit cards. The procedure for getting it is rather simple. All you need to do is fill out an application form and deliver it to the local IRS office by US mail or in person. Moreover, you can file your application online at the official website. The IRS, in turn, will further use this number to count your taxes and tax returns.
The EIN is also needed to file and track governmental fees, taxes, open a business bank account, and recruit new workers. One can obtain an EIN for free; it is a simple procedure to perform on the official IRS website or via mail. The EIN is also known as FEIN.
6. Submit The Reports
In the United States, the company’s owners must present a revenue report over a specific period. It is an obligatory record called an Annual Report. To file such a record, the proprietors should pay a charge of 150 dollars to the Arkansas Secretary. These yearly charges should be recorded with the Secretary of State. One can file the annual charge report online or download the report template from the Secretary of State’s website.
Once you have undergone all the mentioned steps, you can focus on the company’s development and production process. Be attentive when filling out the various templates for the LLC form and work only with reliable sources and agencies.