If you are trying to form an Arkansas LLC, then take note that in this state, how to start an LLC requires having an Arkansas registered agent who will handle all official paperwork on the LLCs behalf.
On this page, you’ll learn about the following:
Arkansas Registered Agent Requirements
There are certain requirements to fill the role of an Arkansas registered agent:
- The nominee must be more than 18 years old.
- The individual must have a legal, physical address in the state where the LLC will operate.
- The individual must be physically present during normal working hours.
How to Choose a Registered Agent?
When you file your Certification of Formation in Arkansas, you must nominate a registered agent. You can either appoint an in-house registered agent (yourself or any LLC member) or outsource an Arkansas registered agent service.
You can elect your registered agent online through the Arkansas Secretary of State website.
Hiring an Inhouse Registered Agent
When hiring an in-house registered agent, make sure the individual is over 18 of age and lives in Arkansas.
Can I be my own registered agent?
Yes, you can be your own registered agent. So long as you meet the basic requirements for a registered agent, then you can take on this role for your LLC.
Outsourcing a Registered Agent
You may, instead, get professional registered agent services. Doing so ensures that you will have the best individual to represent your business. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
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$49 + State Fees
$299 + State Fees
$399 + State Fees
Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
What to Consider when Choosing a Registered Agent
Here are some factors to consider when choosing a registered agent.
- Service Fee: Since most states require formal businesses to have registered agents, selecting the best-registered agent is critical. Hiring a registered agent service typically costs between $50 and $300 annually. When you consider how much time it will save you, this is a small price to pay.
- Tenure in Business of Registered Agent: You want the registered agent to have established and time-tested procedures for handling documents that are received.
- State Jurisdiction Limitation: If your company expands to another state, you should use the same registered agent in all states to reduce the administrative burden of dealing with multiple registered agent service providers.
- Offer Monitoring and Follow-up Services: You want to receive up-to-date information and alerts from your registered agent as soon as possible so that you are aware of the various statutes, rules, and regulations that apply to your company.
Alaska Business Laws for Registered Agents to Note
Registered agents are responsible to handle all the business laws and other legal issues related to Arkansas LLC. Every state has its own business laws. Arkansas is no exception. It has its own set of different business laws to follow. Here are some of the important business laws every business should follow.
- Arkansas Antitrust laws: Antitrust laws regulate and prevent anti-competitive practices in any open market by levying heavy penalties and punishment against such activities. These laws counter the formation of cartels, monopolies, or any barrier created for new entrants in the market. The Arkansas Antitrust laws prohibit any agreement in restraint of trade, price-fixing, quantity fixing, acquisitions executed to reduce competition in the market, and any unfair methods of competition. The time limit to bring in such claims is 5 years. The State allows a successful plaintiff to recover attorneys’ fees.
- Arkansas Deceptive Trade Practices Laws: The State of Arkansas aims to protect its residents from unfair business practices. Such practices mislead the consumers into investing in invaluable market products by selling them with twisted statements and lies such as false advertising. The laws specifically prohibit false advertising and odometer tampering.
The plaintiff can receive remedies such as injunction and reimbursement of money utilized for purchase, suspension of business permit of the accused, fine up to $10,000 per violation, attorneys’ fees reimbursement, and class A misdemeanour upon wilful deceptive trade practice.
- Arkansas Insurance Fraud Laws: The State restricts any activity wherein false statements or intentional misrepresentations are made to benefit from any insurance policy. Such activities constitute insurance fraud and are classified as Class D felony punishable with imprisonment up to 6 years and/or fine up to $10,000 per violation.
Fraud laws prohibit any solicitation of insurance risk on behalf of an insurer, embezzlement of property from an insurer, transacting insurance business in violation of laws, counterfeiting insurance policies, destroying the assets/records of the insurer, etc.
- Arkansas Pyramid and Ponzi Schemes Laws: Any pyramid or Ponzi scheme is considered illegal in Arkansas as they are contrary to the public policy of the State. These schemes are deceptive in nature and participating or organizing such activities is prohibited by the laws of the State. Some common examples include Mail and wire fraud, Commodities, lottery, and securities fraud. As per the statute of limitations, all prosecutions under this law must be initiated within 5 years of the violation. Such activities constitute a Class D misdemeanour, punishable with imprisonment up to 1 year and a fine up to $2500.
- Arkansas Interest Rate Laws: Every state in the United States has an Interest law for businesses. Normally, the general interest rate guidelines are less than the legal threshold of interest rate. Arkansas has laws to limit the interest rates and significantly high-interest rates are considered unlawful and open to criminal prosecution. The maximum legal interest rate is 5% above the Federal Reserve discount rate. The interest rate on judgments is fixed at 6% per annum. The penalty for usury can render such contracts in violation of the interest laws as void and the debtor may recover twice the amount of interest paid.
- Arkansas Wage and Hour Laws: The Employers in Arkansas must abide by the wage and hour laws of the State. The minimum wage is set at $8.50 per hour. Any employee who works for more than 40 hours in a week should be compensated with overtime pay which is 1.5 times the regular hourly rate. The minimum wage for tipped employees is $2.63 per hour, however, the tip must be earned sufficiently up to $7.50 state minimum.
Any employer found in violation of the laws shall be liable to civil penalties and action can be instituted to recover the full wage amount.
The Registered Agents are the people who act as points of contact between your business and the State Authorities. They assist your business in ensuring compliance with all regulations and codes of the State. Hiring a registered agent in Arkansas will help you handle your business in a smooth and legally compliant manner.
All corporations and limited liability companies doing business in Arkansas are required by state law to appoint an Arkansas registered agent. Arkansas registered agents provide a reliable way for the Secretary of State and state courts to contact a corporation or LLC.
A registered agent is simply a person or entity appointed to accept service of process and official mail on your company’s behalf who lives in the state of service and is over 18.
If you intend to be your own registered agent, you may be forced to use your home address (especially if you run a home-based or web-based business), making the address public.