An Arkansas single-member LLC operating agreement is a legally required document for sole proprietors operating in the state. It separates personal and business assets, protects them in legal events, and offers taxation benefits. Annual reports must be filed by May 1 with the state fee. Owners should review the document thoroughly and consult an attorney for clarification.
Step 1: Company Name
Write the full legal name of your LLC in the blank space provided. The company name legally identifies the business for tax and legal purposes.
For example: If your name is Michael and your LLC is called “Michael’s Pizzeria”, you would enter “Michael’s Pizzeria, LLC”.
Step 2: Date
Next, enter the date you, as the sole member, are signing the Operating Agreement. This sets the official start date of the Agreement.
For example: If you are signing the Agreement on May 5, 2023, you would enter “May 5, 2023”.
Step 3: Company and Member Information
Fill in the blank spaces with the legal name of the LLC and your name as the sole member. This clarifies who is responsible for the company’s operations and decision-making and ensures the Agreement accurately reflects the relationship between the company and its member.
For example: If the LLC name is “Michael’s Pizzeria, LLC” and your name is Michael Smith, you would enter those details.
Step 4: Formation Date
First enter the full legal name of your LLC and then fill in the date the Articles of Organization were filed with the State of Arkansas. This date is crucial as it marks the official establishment of your LLC.
For example: If your LLC name is “Michael’s Pizzeria, LLC” and you filed the Articles on April 1, 2023, you would enter those details.
Step 5: Purposes of the Company
In the blank space, concisely describe the company’s main activities or services. This establishes permitted business activities, which legally protects the company by preventing unapproved expansions that could cause disputes or liability. Defining the scope aligns operations with state regulations.
For example: If your LLC is a pizzeria, you may write “To produce and sell pizzas and other related food products.”
Step 6: Authority
Fill in your name in the blank space, indicating that you, as the sole member, have the authority and power to act on behalf of the company. This clarifies who is responsible for making decisions and performing for the LLC.
For example: If your name is Michael Smith, you would enter “Michael Smith”.
Step 7: Company Name
This is the time you would enter the name of your LLC once again. Restating the company name links back to the identified legal entity.
For example: You would re-enter “Michael’s Pizzeria, LLC”.
Step 8: Managing Member’s Signature
As the sole member of the LLC, sign on the line provided to show your Agreement with the terms outlined in the Operating Agreement. This signature formalizes the Agreement and demonstrates your commitment to operating the business according to the rules.
For example: You, Michael Smith, would sign your name on the line.
Step 9: Managing Member’s Name
Here you must print your name. Printing the member’s name creates an unambiguous record of the signing party, avoiding confusion if the signature is unclear. It provides documented evidence of who exactly has entered into the binding agreement.
For example: You would print “Michael Smith”.
Conclusion
In conclusion, completing the Single-Member LLC Operating Agreement for an Arkansas-based company is an essential legal requirement for sole proprietors in the state. By carefully following the steps provided and ensuring all necessary details are included, you establish a strong foundation for your LLC, safeguarding your personal and business assets. With the proper execution of this document, you can confidently manage your business while adhering to state regulations and enjoying the benefits of a well-structured single-member LLC.
