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.
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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
Forming an LLC in Arkansas is easy. Simply follow the steps outlined on this page.
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.
Arkansas LLC Cost FAQ
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.
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.
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.
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.
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.
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.
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.
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.
Article Sources
Arkansas Taxpayer Access Point:
https://atap.arkansas.gov/_/
IRS - Employer ID Numbers:
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
Arkansas Secretary of State:
https://www.sos.arkansas.gov/
SBA - Apply for Licenses and Permits:
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
Chamber of Commerce - Arkansas Chamber of Commerce List:
https://www.officialusa.com/stateguides/chambers/arkansas.html