How Much Does It Cost to Start an LLC in Arkansas?

Arkansas Online LLC Filing Fee: $50

The main cost to start an LLC in Arkansas is the $45 fee to file your LLC's Certificate of Organization online with the Arkansas Secretary of State.

For a look at LLC cost in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Arkansas Franchise Tax: $150

Arkansas LLCs must pay a $150 franchise tax each year by May 1. This can be done online or by mail. There is a $25 late filing fee, plus interest.

Cost to Form a Foreign LLC in Arkansas

If you already have an LLC that is registered in another state and you’d like to expand your business into Arkansas, you’ll need to register your LLC as a foreign LLC in Arkansas.

The cost for registering an Arkansas foreign LLC is $270 online or $300 in person or by mail. You can register a foreign LLC in Arkansas by filing an Application for Certificate of Registration of Foreign LLC (Form FL-01).

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 120 days prior to LLC formation by filing an LLC Name Reservation (Form RN-06) and paying the filing fee. There is a $22.50 filing fee for online filing and a $25 filing fee if filing by mail or in person.

Fictitious Name

File an Application for Fictitious Name (Form DN-18) and pay the filing fee to create a name other than your legal LLC business name. The filing fee is $25 for online filing and $22.50 if filing by mail.

Seven Basic Steps to Start an LLC in Arkansas

Step 1: Name Your Arkansas LLC
Step 2: Choose a Registered Agent
Step 3: File the Certificate of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 6: Pay the Franchise Tax
Step 7: Keep Your Company Compliant

Step 1: Name Your Arkansas LLC

When you name your Arkansas LLC, you’ll need to choose a name that:

1. Is available for use in the state of Arkansas
2. Meets Arkansas naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Arkansas guide for detailed naming rules and instructions for registering a business name in Arkansas.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Registered Agent

All LLCs in Arkansas must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Arkansas registered agent must:

• Be at least 18 years or older
• Have a physical address in Arkansas
• Be available during normal business hours to accept service of process

Step 3: File the Certificate of Organization

The Arkansas Form LL-01 - Certificate of Organization is a document that is filed with the Arkansas Secretary of State to form an LLC. The fee for filing the Certificate of Organization is $50.

For detailed instructions for completing the Certificate of Organization, visit our How to File the Arkansas Certificate of Organization guide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Arkansas LLCs, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Arkansas LLC operating agreement guide.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN? An EIN number is required for the following:

• Opening a business bank account
• Hiring employees

Step 6: Pay the Franchise Tax

In Arkansas, all LLC owners are required to file annual franchise tax reports and pay an annual franchise tax. The flat fee for LLCs is $150.

You can pay the franchise tax online or by mail. The annual franchise tax report must be filed by May 1.

Step 7: Keep Your Company Compliant

Compliance for your Arkansas LLC encompasses a variety of aspects, from obtaining the appropriate licenses and permits to fulfilling state tax obligations.

• Business Licenses & Permits: Your LLC needs to adhere to federal, state, and local regulations. The necessary licenses and permits, along with their respective fees, will vary based on your business type.
• Arkansas LLC Tax Requirements: It's important to understand your tax obligations. These can include a 6.5% state sales tax for selling physical goods, employer taxes if you hire employees, and state income tax with rates ranging from 2% to 4.9% depending on your LLC's income. Federal income tax should also be considered.
• Employee Hiring Compliance: If your LLC plans to hire employees, make sure to verify their work eligibility in the US, report them as new hires to the state, provide workers' compensation insurance, withhold their taxes, and display workplace compliance posters prominently.

Each of these points presents a unique compliance consideration for successfully operating an LLC in Arkansas.