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

The cost to start an LLC (limited liability company) online in Arkansas is $45. This fee is paid to the Arkansas Secretary of State when filing the LLC’s Certificate of Organization.

We recommend Northwest ($29 + State Fees) to help form your LLC.

How Much Does an LLC Cost 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.

Ready to Start Your Arkansas LLC?

Read our LLC formation services review to choose the best service for you.

Arkansas LLC Annual Fees

When considering starting a Limited Liability Company (LLC) in Arkansas, one must factor in not only the initial costs but also the ongoing costs that come with maintaining an LLC. 

Here are the primary ongoing Arkansas LLC costs:

  • Annual Franchise Tax: All LLCs in Arkansas are required to pay an annual Franchise Tax. The fee for this tax is $150. This should not be confused with an Annual Report as required in some states. The franchise tax can be filed with the Secretary of State's office.
  • Registered Agent Fee: Arkansas law requires every LLC to appoint a registered agent. The costs can vary depending on whether you act as your own agent or hire a professional service, which can range from $100-$300 annually. 

Overall, it's important to factor in these ongoing costs when planning your LLC's budget in Arkansas.

How to Register an Arkansas LLC Yourself

Establishing your own LLC in Arkansas is an attainable task that you can tackle on your own. Just adhere to the seven stages delineated below, and you'll be well on your way. 

These uncomplicated guidelines will steer you through the required steps, simplifying the process of registering your Arkansas LLC and making it transparent and feasible.

Recommended: Using an LLC formation service like Northwest ($29 + State Fees) saves time and ensures compliance. Besides the low cost, we like their streamlined approach and excellent customer service.

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.

Find a Domain Now

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

Recommended: Get a free year of registered agent services when you hire Northwest Registered Agent to form your LLC. $29 (plus state fees).

Get Started

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.

File the Arkansas Certificate of Organization

OPTION 1: File Online With the Arkansas SOS Corporations Online Filing System

File Online

- OR -

OPTION 2: File Form LL-01 by Mail or In Person

Form LL-01

State Filing Cost: $50, payable to the Secretary of State

Filing Address:
Arkansas Secretary of State
1401 W. Capital Ave.
Suite 250
Little Rock, AR 72201

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:

Free EIN: You can get an EIN from the IRS website (free of charge) after forming your business.

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.

Steps After LLC Formation

Read all the steps you’ll need to maintain your LLC’s personal liability protection, open a business bank account, get business insurance, and stay up to date with state reporting requirements.

Visit our After Forming an LLC guide to learn more.

Arkansas LLC Cost FAQ

Are there any other costs associated with forming an LLC in Arkansas?

Yes, apart from the filing fee, there are a few other potential costs. One such cost is the registered agent fee. A registered agent is required by the Arkansas Secretary of State and typically costs around $100 per year. 

If you want to reserve a business name before filing your Certificate of Organization, there is a name reservation fee of $25. Additionally, though not mandatory, having an operating agreement for your LLC is advisable and can cost around $50.

What is the total cost of forming an LLC in Arkansas?

The total cost of forming an LLC in Arkansas depends on the services you choose to use. However, the basic costs include the filing fee of $45 (online) or $50 (mail or in person) for the Certificate of Organization.

Can I form an LLC in Arkansas without paying any fees?

No, forming an LLC in Arkansas incurs some fees. The state requires a filing fee for the Certificate of Organization and an annual franchise tax, which are mandatory costs for LLC formation.

Are there any ongoing costs associated with maintaining an LLC in Arkansas?

Yes, there are ongoing costs associated with maintaining an LLC in Arkansas. The annual franchise tax of at least $150 is one such cost. Additionally, there may be other expenses like the registered agent fee if you choose to have a registered agent for your LLC or any business licenses your business needs to operate.

How can a registered agent help with forming an LLC in Arkansas?

A registered agent is a person or business designated to receive legal documents on behalf of your LLC. They play a crucial role in ensuring that you receive important notices and legal papers. 

While hiring a registered agent is not mandatory, it can be beneficial for LLC owners who may not have a physical presence in Arkansas or prefer to have a professional handle these responsibilities.

Do I need an operating agreement for my LLC in Arkansas?

While not legally required, having an operating agreement for your LLC in Arkansas is highly recommended. An operating agreement outlines the rules and regulations of your LLC, clarifying how it will be managed and how decisions will be made. It can help avoid disputes and provide a clear framework for the operation of your business.

How can an LLC formation service assist with the process?

An LLC formation service can help streamline the process of forming an LLC in Arkansas. They can assist with preparing and filing the necessary paperwork, ensuring compliance with state regulations. Additionally, they may offer services such as acting as a registered agent and providing customizable operating agreement templates, saving you time and effort.

Are the costs for forming an LLC in Arkansas tax-deductible?

It's important to consult with a tax professional for specific advice, but in some cases, the costs associated with forming an LLC can be tax-deductible. Expenses related to starting and operating a business, including filing fees and professional services, may be eligible for deductions. 

Be sure to keep accurate records and consult with a tax professional to determine the deductibility of these costs in your particular situation.

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