As per the Arkansas state laws, it is not required for LLCs to draft an Operating Agreement. That being said, I strongly urge the LLC member(s) to have one as without one your business may be at risk.
So, why it’s important to draft an Operating Agreement?
Incorporating this agreement in your business from day one can helps you prevent any confusion and possible disputes. This agreement also upholds the limited liability and asset protection that LLC offers.
Another important point to note here is that there no standard operating agreement. Each business is different and has a different understanding between the member(s). So the agreement needs to be modified as per the business requirement. Broadly the document should cover – name and contact details of the member(s), what does the business do, duties and responsibility of member(s), ownership percentage, profit/loss distribution and so on.
I also recommend member(s) to add following points:
1) Voting rights
2) Arbitration Clauses
3) Information on transfer/buyout of membership interest
4) Liquidation and dissolution
5) The process to add any new member
Below we have shared a sample Arkansas LLC operating agreement for your reference. You can edit it as per your business requirements.
Download Arkansas (AR) LLC Operating Agreement (PDF/DOCX)
Based on the LLC type, download the relevant document.
Disclaimer: The document is shared for reference purpose only. We disclaim all liability and responsibility arising from any reliance placed on the information shared. We encourage you to consult a professional business attorney to get a professional agreement made.
Last Updated: 02/01/2019