International Legal Services

Arkansas – Limited Liability Companies

General information about the State	Nicknames: Natural State, Land of Opportunity Population: 2,510,000 (33rd place) Area: 53,182 sq miles (29th place) Admitted to Union: the 15th of June, 1836 Capital City: Little Rock (population 178,000) Other cities: Fort Smith (73,000), North Little Rock (62,000)
Possible names with example of Alpha	Alpha Limited Liability Company Alpha Limited Company Alpha LLC Alpha L.L.C. Alpha LC Alpha L.C. Alpha Ltd. Co. Alpha Limited Co. Alpha Ltd. Company Professional LLCs must contain the words “Professional Limited Liability Company”, or “Professional Limited Company”, or “PLLC”, or “PLC”.
The minimum number of members	One
Company management	LLC is managed by its members unless the articles state that LLC is to be managed by one or more managers. If not otherwise provided in the operating agreement members have equal voting power (presumably, one vote each), with a majority vote required to take action. Managers approve decisions by majority vote. Except as provided in the operating agreement, managers are elected for an indefinite term, replaced and removed by approval of a majority of members. Operating agreement should be in writing. When LLC has nominee members an attorney is appointed to manage LLC on the basis of power of attorney. As a rule, general power of attorney and a restricted one only for the purpose to open bank account are issued by nominee members in favor of company’ beneficial owner or authorized persons.
Amendments to Articles and Operating Agreement	Unless otherwise provided by the operating agreement, all members must agree to amend operating agreement. No specific rules for amendments of the articles were found.
Withdrawal of Members	A member may withdraw upon 30 days’ written notice to the other members. Exception: Unless otherwise stated in the operating agreement, if the LLC is established for a definite term or project, the member may not withdraw before the completion of the term or project. If a withdrawal is in violation of the operating agreement, the LLC may offset damages against the amount due a withdrawing member. Unless provided otherwise in operating agreement a withdrawing member is entitled to receive the fair value of the member’s interest within a reasonable time after withdrawal. Except as provided in the certificate of formation or operating agreement, the LLC automatically dissolves after the dissociation of a member, unless all remaining members unanimously vote to continue the LLC within 90 days after dissociation of a member.
Annual Report	Each company should present annual report to the Secretary of the State due on the 1^st of June.
Taxation	State tax treatment of the company follows IRS classification for federal income tax. Sales tax – 4.625%