Formation of Limited Liability Company in Arkansas (USA)
The Arkansas LLC is a unique non-taxable offshore corporate structure, frequently used for conducting international business outside the United States. An LLC is formed by one or more business people, as owners. The owners, called Members, file Articles of Organization and set out an Operating Agreement. An LLC is a pass-through type of business, because the profits and losses are passed on to the Members depending on their share of membership.
The name of the LLC must end with “Limited Liability Company,” “Limited Company,” “LLC,” “L.L.C.,” “LC” or “L.C.” The word “Limited” may be abbreviated as “Ltd” and the word “Company” may be abbreviated as “Co.”
Articles Of Organization And Operating Agreement
Articles of Organization must be prepared and filed with the Secretary state of Arkansas. Filing fees along with any applicable initial franchise taxes or other initial fees must also be paid. An LLC operating agreement is not required in Arkansas, but is highly advisable. Member/Manager names and addresses are not required to be listed in the Articles of Organization.
An operating agreement is a legal document outlining the ownership and operating procedures of your LLC. This agreement allows you to form financial/working relationships with co-owners into an established system suitable to your business.
Any person, including individuals, corporations, and other legal entities, may be a member of an LLC. A person may become a member of an LLC at its organization or at any time after its organization. An Arkansas LLC may have a minimum of one Member (owner) or more. Each member of an Arkansas LLC is liable only to the extent of his or her percentage of ownership in the LLC.
LLCs must have one or more managers/members.Management of an LLC is the responsibility of its members, unless its articles of organization vest management authority in one or more managers. Managers or members exercising management responsibilities have the authority to act on behalf of the LLC, and to contractually bind the LLC.
Registered Office And Local Agent
LLCs must list the name and address of a registered agent with a physical address (no post office boxes) in Arkansas. The registered agent must be available during normal business hours to accept important legal and tax documents for the business.
There are no statutory requirements concerning meetings of members or record keeping. It is recommended that with two or more members, a Members Agreement be entered into. If meetings are held by members, this may be done anywhere in the world and in any way convenient to the members.
Usually 1 business week. We require up to 10 working days for legalization of the documents and delivery by courier.
Arkansas Limited Liability Company (LLC) does not pay US state or federal income tax if its owners are not US citizens or green card holders, its offices are located outside of the US, and the LLC does no business in the US. The IRS tax treatment for an Arkansas LLC is on a flow-through tax basis, that is if the LLC is not taxed on its profits. The income of the LLC is distributed to its members who are taxed on a personal income basis.
Non-resident aliens are not taxable by the US on income derived from outside the US. If an LLC derives its income from outside the US, the non-resident aliens would not need to file tax returns.