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Before forming a Limited Liability Company (LLC) in Arkansas, you need to designate a registered agent. Learn what the registered agent is, their job duties, and the requirements to be one.
What is an Arkansas Registered Agent?
A registered agent is an individual or company who is the central point of contact to receive important legal documents on behalf of a business.
What does an Arkansas Registered Agent Do?
The requirements of a registered agent are found in Section 4-20-105 of the Arkansas Code. These say LLCs will have and continuously maintain a registered agent. The duties and requirements of the registered agent include: The agent must be available during normal business hours to accept any service of process, notice, or demand pertaining to the entity and then forward it to the appropriate individuals within the LLC.
This position is vital because it ensures that the correct people within an LLC are notified in the event of time-sensitive events such as service of process for lawsuits, garnishment notices against employees, notice of annual reports, and/or notifications of taxes.
Who can be a Registered Agent in Arkansas?
The requirements to be a registered agent in Arkansas include:
- Being an individual resident of Arkansas, a registered domestic business entity, or a foreign (out-of-state) business entity authorized to do business in Arkansas and with an office in the state.
- Having a physical address (often referred to as a registered office or principal office) in the state of Arkansas. This can be the actual address of the business, the address of a registered agent service, or the home address of an owner, friend, or family member, as long as it’s in the state. The office of the registered agent does not have to be the same as the business address, but P.O. boxes and mailbox services are not allowed.
- Being available to receive Service of Process on behalf of the business during normal business hours. Service of process refers to the delivery of legal documents (such as notice of a lawsuit filed) against the business entity.
Can I be my own Arkansas Registered Agent?
You can be your own agent, as long as you are a resident of the state and are generally available during business hours.
Should you be your own Arkansas Registered Agent?
Provided you live in Arkansas, you can legally be your own registered agent. However, there are a few reasons to consider hiring a service to act as a registered agent.
- Availability – A registered agent needs to generally be available at the principal address during normal business hours. This could be a challenge if you need to visit clients, go on vacation, take a sick day, or don’t keep normal daytime business hours.
- Annual Notices – Some registered agent services provide reminders on the state requirements such as annual report filings. Remembering to file an annual report can be easily overlooked and the agent provides an additional layer of oversight.
- Penalties and Fees – If your LLC fails to continuously maintain a current registered agent, the company may be responsible for penalties and fees. There’s also the possibility that the state will dissolve your LLC entirely.
Arkansas Small Business Services
Arkansas DBA
Form an Arkansas LLC
Arkansas Annual Report
