An Arkansas limited liability company operating agreement is an optimal way of solidifying the rules for LLCs with one or more members. Business owners of Arkansas LLCs can lock in their contribution requirements, rights to profit, and voting authority, along with a host of other member concerns upon executing this agreement. Naturally, the policies governing the LLC’s actions will also be a significant part of this contract.
Arkansas LLC members of single-member and multi-member companies both benefit by declaring certain facts, like the membership roster and tax status of the LLC, on paper when their research and negotiations have been completed
Is it Required in Arkansas?
No, a written operating agreement is not required by the State of Arkansas for a limited liability company to operate. A limited liability company may operate under an oral operating agreement, a different type of agreement altogether, or an informal arrangement; however, if the provisions prove inadequate, the Arkansas Uniform Limited Liability Act shall impose its statutes.
By Type (2)
Single-Member LLC Operating Agreement – For an LLC with only one (1) member.
Multi-Member LLC Operating Agreement – For an LLC with at least two (2) members.
State Definition
“‘Operating agreement’ means the agreement, whether or not referred to as an operating agreement and whether oral, implied, in a record, or in any combination thereof, of all the members of a limited liability company, including a sole member, concerning the matters described in § 4-38-105(a). The term includes the agreement as amended or restated.”
Statutes
- Ark. Code § 4-38-102 (8) “‘Limited liability company’, except in the phrase “foreign limited liability company” and in § 4-38-1001 et seq., means an entity formed under this chapter or which becomes subject to this chapter under § 4-38-1001 et seq. or § 4-38-110;”
- Ark. Code § 4-38-102 (12) – “‘Member-managed limited liability company’ means a limited liability company that is not a manager-managed limited liability company.”
