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The individual member should report the single member LLC's income and deductions on a Federal Schedule C included with their individual income tax return. All resident and non-resident partners, including corporations, must report and pay taxes on any income derived from an Arkansas partnership.
Starting an LLC in Arkansas will include the following steps: #1: Choose a Name for Your Arkansas LLC. #2: Hire a Registered Agent in Arkansas. #3: Request a Federal Employer Identification Number (EIN) #4: File Your Certificate of Organization. #5: Create an Operating Agreement. #6: Fulfill Your Ongoing Obligations.
Overall, a limited liability company offers more protection in terms of personal liability protection than sole proprietorships?one of the major benefits of this business type. In an LLC, the owner is only personally liable up to the amount of money they've invested in the LLC.
Yes, you can be your own registered agent in Arkansas. With that said, however, after considering the registered agent requirements most business owners elect to hire a registered agent service instead.
Differences between LLC and sole proprietorship The most significant difference is whether you have limited liability for the business' debts and obligations, as with an LLC, or whether the business' liabilities and obligations fall to you personally in the event of a lawsuit or debt collection.