Arkansas Limited Liability Company Definition
Arkansas Limited Liability Company
DEFINITION
An Arkansas limited liability company (LLC) combines many characteristics of corporations and partnerships.
The LLC provides limited liability to its members.
Limited Liability Companies:
• Must file Certificate of Organization with the Arkansas Secretary of State.
• Allow members to manage the company themselves or to elect managers.
• Allow members to engage in management without risk of losing their limited liability status.
• Are a relatively new form of business organization.
• May be taxed by the Internal Revenue Service as corporations or as partnerships,
depending on their structure.
• Must file annual franchise tax reports with, and pay franchise taxes to, the Arkansas
Secretary of State.
• Are required to file informational returns with the Internal Revenue Service and Arkansas
Income Tax Division.
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