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The Arkansas LLC operating agreement is a recommended legal document for single and multi-member limited liability companies. This document allows the member(s) and/or owner(s) to create policies, outline responsibilities, identify voting rights, and perform other ownership responsibilities in an LLC.

From AR Code § 4-32-102 (2019):

(11) “Operating agreement” means the written agreement which shall be entered into among all of the members as to the conduct of the business and affairs of a limited liability company;

Arkansas Operating Agreement Law

Arkansas’s Small Business Entity Tax Pass Through Act contains the laws relating to operating agreement in regards the scope, function, and execution of operating agreements in Arkansas.

Forming an LLC in Arkansas

  1. Conduct a name search
  2. Choose a registered agent
  3. File formation articles
  4. Draft an operating agreement

When choosing your business name, you must include one of:

  • LLC
  • L.L.C.
  • Limited Liability Company

These designators are used to identify the company as an LLC, and therefore no other designators (“corp”, “inc.”, etc.) may be used in the LLC name.

The chosen name must be unique from businesses of all types in Arkansas, and may require additional verification if filing as a professional (such as a doctor, dentist, or lawyer).

The name cannot include government agencies or their abbreviations to avoid confusion.

To conduct the name search, use the Arkansas Secretary of State Business Entity Search website.

Step 2: Choose Your Registered Agent

All Arkansas LLCs are required to appoint a registered agent for their LLC that assumes legal responsibility for accepting documentation on behalf of the business, including service of process.

The registered agent may be an individual or business.

An individual agent must:

  • Be 18 years or older
  • Be available during business hours (9am – 5pm local time)
  • Be a resident of the state
  • Have a physical (not a P.O. Box) address in Arkansas, as well as a mailing address within the state

When using a registered agent service, the agent must be authorized to do business in Arkansas.

Step 3: File Your Formation Articles

Domestic LLC formations (in-state) must complete Articles of Organization to be recognized as an LLC.

Online Filing (Domestic):

  • $45 filing fee
  • Turnaround time: 1-3 business days
  • Submit online

Mailed Filing (Domestic):

  • $50 filing fee
  • Turnaround time: 5-7 business days upon receipt
  • Fill out the form online or after printing and mail to:

Arkansas Secretary of State
Business and Commercial Services
1401 W. Capitol Avenue
Suite 250
Little Rock, AR 72201

In-Person Filing (Domestic):

  • $50 filing fee
  • Turnaround time: 5-7 business days
  • Fill out the form, print, and deliver to:

Arkansas Secretary of State
Business and Commercial Services
1401 W. Capitol Avenue
Suite 250
Little Rock, AR 72201

Foreign LLC formations require a Certificate of Good Standing to be filed along with the articles.

Online Filing (Foreign):

  • $270 filing fee
  • Turnaround time: 1-3 business days
  • Submit online

Mailed Filing (Foreign):

  • $300 filing fee
  • Turnaround time: 5-7 business days upon receipt
  • Fill out the form and mail to:

Arkansas Secretary of State
Business and Commercial Services
1401 W. Capitol Avenue
Suite 250
Little Rock, AR 72201

In-Person Filing (Foreign):

  • $300 filing fee
  • Turnaround time: 5-7 business days
  • Fill out the form, print, and deliver to:

Arkansas Secretary of State
Business and Commercial Services
1401 W. Capitol Avenue
Suite 250
Little Rock, AR 72201

Step 4: Draft an Arkansas Operating Agreement

It is highly recommended that Arkansas LLC formations draft an operating agreement as part of their formation process in order to ensure all members are on the same page. This includes financial contributions, a breakdown of income or expenses, individual duties, voting rights, and more. Without it, the operating agreement defaults to the state’s default protection, which doesn’t address each company’s unique requirements.

Each member should hold a signed copy of the agreement, but they are not required to be filed with Arkansas.