Forming an Arkansas LLC online
Many people wonder why businesses form LLC through the nation, and specifically Arkansas. If you’re doing business in Arkansas as a sole proprietor or a partnership or if you’re running business through a DBA, you should consider forming an LLC. An LLC is a Limited Liability Company, what the LLC provides is exactly as the name says, liability protection. By forming an LLC in Arkansas you are separating yourself from the company. When you’re doing business as a sole proprietor or a partnership all liability falls upon you or the partners of the business, therefore if the business folds, you or the partners are liable for all debts that the business may have accumulated, but when doing business as an LLC the business entity is separate, so you are not personally liable for the company’s debts.
Naming Your LLC
It’s important to remember that many LLC names may appear to be available in the state of Arkansas but they are not necessarily available. The state sees no difference in whether you write out LLC as Limited Liability Company or even as L.L.C. they all mean the same thing in the eyes of the state. Another tip when choosing an Arkansas LLC name is to minimize the use of acronyms, and if you are using acronyms you should add a word that is not commonly used. A & B Group, LLC would probably not be available because acronyms are popular as well as the word Group. If you file your LLC name as one thing, you may still do business as another name, once the LLC is complete you must file for a DBA (Doing Business As) with the appropriate office.
Using a Revoked Name
In the state of Arkansas you may not use a revoked name until 7 years after the LLC has been inactive. If the LLC revoked prior to December 31, 1999 then you must wait 15 years before you can use a revoked name. The state of Arkansas has these types of rules to protect the public, if an entity was allowed to take the name of a recently revoked entity, it would be a common belief that the new company under that name was the same company as the old company with that name. Some states do not require any significant period of time that a new company must wait before using an inactive name, but the state of Arkansas has one of the longest time frames.
Keeping Your LLC in Compliance
Keeping your LLC active and in compliance with the state of Arkansas is important. You must make sure that you are on time with your annual filings, this is how the state is informed of any changes within your LLC, such as the changing of a registered agent, or changing your business address. It’s also important to be sure that you take care of your business taxes, though when forming an LLC the LLC automatically defaults to be taxed with your personal taxes, this is often referred to as “pass through” taxation.
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