What Is an Arkansas LLC Operating Agreement?
An Arkansas LLC operating agreement is a legal document that describes how your LLC will conduct its business activities. It covers details such as the following, per AR Code § 4-38-105:
- Member roles
- Management structure (member-managed vs. manager-managed)
- Transfers of interest
- Exit strategies
- Capital contributions
You can write this document whether your LLC is single-member or multi-member, though it’s especially helpful in clarifying a multi-member LLC’s rules. For example, you can describe voting rights and whether they are based on equal voting rules or capital contributions.
Arkansas LLC operating agreements are governed by the new Arkansas Uniform Limited Liability Company Act (ULLCA), which went into effect September 1, 2021. It applies to LLCs formed on or after that date. This act states that an operating agreement can be “oral, implied, in a record, or in any combination thereof” (AR Code § 4-38-102(13)). However, it’s easiest to enforce when it’s in written form, as there is a tangible record to refer to. Write yours with Legal Templates’s form, including customized terms that work for your company.
Your Arkansas LLC operating agreement should also outline who is responsible for the LLC filing its annual franchise tax report by May 1 each year.
Does Arkansas Require an Operating Agreement for an LLC?
Arkansas does not require an operating agreement for an LLC. However, it’s highly encouraged to have one, especially for multi-member LLCs, to prevent disputes and ensure smooth operations. Without this agreement, your LLC will default to operating under the ULLCA.
An operating agreement for an LLC in Arkansas also helps reaffirm the entity’s limited liability status. This means creditors can’t go after the members’ personal assets if the business faces lawsuits or incurs debt.
How to Form an LLC in Arkansas
An Arkansas LLC operating agreement is optional when starting an LLC, but you must file the certificate of organization with the Arkansas Secretary of State to officially form your entity.
Sample LLC Operating Agreement for Arkansas
See an example of our LLC operating agreement for Arkansas. You can review the key elements to better understand how you can draft yours and include customized terms. Once you fill out your document with Legal Templates’s guided form, you can download it in PDF or Word format.
Legality of Preformation LLC Operating Agreements in Arkansas
In Arkansas, future LLC owners can draft an LLC operating agreement that sets out the rules for their LLC in advance. If they agree, the rules will take effect as soon as the LLC is formed (AR Code § 4-38-106). This kind of advanced planning ensures that the Arkansas LLC has a rulebook to follow from its very first day of existence.
