An Arkansas multi-member LLC operating agreement is a legal document that is designed to meet the needs of multi-member businesses. This document, once reviewed, agreed upon by all members and signed in agreement, will offer protections that would not be available without it.
The document will offer separation between the personal assets and property of all members, from the business. As well, the form will serve as certification of members.
This document is required by the state of Arkansas, to be registered and reports and fees will be required no later than May 1, annually. This document must be witnessed and acknowledged by a Notary Public, therefore, all signatories must refrain from the application of signature until all members are present in the service of a Notary Public.
How to Write
Step 1 – Download the Document-
- Enter the name of the company at the top of the form
Step 2 – Establish the Agreement
- Enter the date in which the document has been prepared and shall therefore become effective, in mm/dd/yyyy format
- Enter the names of all contributing members
Step 3 – Formation – Begin by providing the following information:
- Effective Date in mm/dd/yyyy format
- The Company name
- Enter the name of the company again
Name –
- Enter the name in which the company will conduct business
- Purpose
- Office – Enter the complete, physical address in which the business shall conduct business (required)
- Registered Agent – Submit the name of the initial registered agent
- Enter the office address where the registered agent may be contacted
- Term – Enter the date in which the term of the company shall commence
- Names and Addresses of Members – Review the information
- Admission of Additional Members – Carefully review the information provided
Step 4 – Capital Contributions – All members must review the following information:
- Initial Contributions
- Additional Contributions
- No Interest on Capital Contributions
Step 5 – Allocations of Profits and Losses;Distributions – Read all of the following information carefully:
- Profits/Losses
- Distributions
- No Right to Demand Return of Capital
Step 6 – Indemnification –
- Carefully read this entire section
Step 7 – Powers and Duties –
- Management of Company – Read all subsections 5.1.1 through 5.3
Step 8 – Salaries, Reimbursement and Payment of Expenses – All members must review the following:
- Organization Expenses
- Salary
- Legal and Accounting Services
Step 9 – Books of Account, Accounting Reports, Tax Returns, Fiscal Year, Banking – Members must familiarize themselves with the following information:
- Method of Accounting
- Fiscal Yea; Taxable Year
- Capital Accounts
- Banking
Step 10 – Transfer of Membership Interest – Members must carefully review the following sections and subsections:
- Sale or Encumbrance Prohibited
- Right of First Refusal and Subsections 8.2.1 through 8.2.5
Substituted Parties –
- Read all subsections 8.3 through 8.3.2
Death , Incompetency or Bankruptcy of Member
- All members must review subsections 8.4 through 8.4.1
Death Buy-Out –
- This is a lengthy section and must be reviewed by all members to include all subsections: 8.5 through 8.5.6
Step 11 – Dissolution and Winding Up of the Company –
- Members must read sub-statements 9.1 through 9.1.4
Winding Up- All members must carefully review – Subsections 9.2 through 9.2.3
Step 12 – General Provisions – In conclusion, all members must review all of the following sections:
- Amendments
- Governing Law
- Entire Agreement; Modification
- Attorney Fees
- Further Effect
- Severability
- Captions
- Notices
Step 13 – Signatures, Exhibits, Notary Acknowledgement –
- Once all of the sections and subsections have been reviewed by the managing members, all signatures must be entered in the presence of a Notary Public. Once in the presence of a Notary, enter the following:
- Each member must print or type their name
- All members must also enter their signatures
Step 14 – Listing of Members – Schedule 1 – In the continued presence of the Notary Public:
- Enter the name of the company at the top of the page
- Submit the date for which the member’s listing is created
- Enter all member’s names
- Enter all member’s complete addresses, respective
- AND
- All members must print or type their names at the end of the page
- Members must also enter their signatures
Step 15 – Listing of Capital Contributions (No contributions less than $100.00) – Submit the following:
- Each member’s name
- Each member’s contribution
- Each member’s respective percentage of ownership
- AND
- Enter the date in which the document has been completed in dd/m/yy format
- AND
- Each member must submit their printed or typed name
- Each member must submit their signature
Step 16 – Listing of Valuation of Members Interest – Schedule 3 – Enter all of the information as follows:
- The name of the company at the top of the page
- Member’s name
- Each member’s Valuation Endorsement (in dollar amounts)
- AND
- Date the signatures in dd/m/yy format
- All members are required to provide their typed or printed names
- Members must also provide their signatures
Step 17 – Notarization –
- The notary shall acknowledge the signatures to these document by witness and recording
- Once the signatures have been witnessed and recorded, they shall complete the Notary section of the document, sign the document and acknowledge the signatures with their official notary seal
When the documents are complete, it is required by this state that all members receive a copy, individually, as proof of certification of membership. All members will be responsible to keep the document safe and accessible in the event it’s required