Starting a company is so complicated, right? Well…yes. But, no.
Actually starting the company, figuring out what you’re going to do, what the name of the business should be, whether you should have a partner, where you’ll be located, how you’ll make money and afford groceries…yes. That’s hard.
Filing your LLC with the state of Arkansas, getting a tax id, and starting a bank account? Easy.
If you have a name for your business, check here and make sure no one else has that business name in Arkansas. If you have THE perfect name and it’s not taken but you’re not quite sure you’re ready to file yet, you can reserve your name for 120 days. The link is here.
Here’s what you need to do:
1. Operating Agreement:
If you don’t have a partner, skip to step 2. If you have a partner, you need to have an operating agreement. Think you don’t need one because y’all are buddies or are somehow related? Hahahaha!! That’s exactly why you need an official agreement. Decide if you’re splitting the business 50/50 or 79/21 or 30/40/30 or whatever. Decide who’s responsible for what. Make it legal. Do it right. Either find a lawyer or go to a place like rocketlawyer.com and get it done. It should be noted that the state of Arkansas doesn’t require this, but your bank might.
2. File with the State
To be official, you’ll have to file Articles of Organization with the Arkansas Secretary of State. It sounds really hard, but it’s not. You’ll have to include the LLC’s name and address, the name and address of the LLC’s registered agent (probably you or a partner – see #3), and whether or not the LLC will be run by a manager. You can file in person, but it easier to file online. It’s currently $45 to file.
3. Registered Agent
Every LLC in Arkansas must have a “registered agent”. This sounds like a spy. It’s not. It’s just the person (who has to live in Arkansas) or a business (in Arkansas) that agrees to accept legal papers on behalf of the LLC. Choose responsibly.
If you have more than one person in your LLC, you’ll have to get an EIN (Employer Identification Number). If it’s just you, get one if you want it to be taxed as a corporation instead of a sole proprietorship. It’s easy to get one – just go here.
Check your city and county websites and make sure you comply with all of their business license requirements.
You knew this was coming. You must pay Arkansas taxes to the Arkansas Secretary of State, with the minimum being $150 each year. You also have to file annual franchise tax reports. A reputable accountant should be able to help with this.
7. Done…now go to work!
Go make your millions! I sincerely hope you do well!