How Much Is an LLC in Arkansas?
Arkansas LLC Filing Fee: $45+
To form an LLC in Arkansas, you'll need to file the Certificate of Organization for Limited Liability Company (Form LL-01) with the Secretary of State. The Arkansas Secretary of State charges a $50 fee to process and record this document when submitted by mail or in person. Submissions may also be made online for $45.
Registered Agent Fee
Every Arkansas LLC must appoint a registered agent. Your Arkansas registered agent must be a resident of Arkansas and must be available to receive service of process during normal business hours at a designated street address.
You can be your own registered agent in Arkansas, or you can use a registered agent service for a minimal cost.
Recommended: Get free registered agent services for one year when you form an LLC with Northwest.
Arkansas Annual Report Fee: $150
Arkansas requires LLCs to file an Annual LLC Franchise Tax Report with the Secretary of State each year. When both domestic and foreign LLCs register their business with the state, a section titled Limited Liability Company Franchise Tax must be completed so that the LLC can receive its annual franchise tax reporting form.
Cost to Register a Foreign LLC in Arkansas: $270+
LLCs registered in another state that want to expand into the state of Arkansas must register as a foreign LLC in Arkansas.
A foreign LLC can register to do business in Arkansas by filing an Application for Certificate of Registration of Foreign Limited Liability Company. Applications by mail or in person can be made by printing, completing, and submitting Form FL-01 for a cost of $300.
Applications can also be made online for a cost of $270.
Business Licenses and Permits
Arkansas does not require businesses to have a general business license. The only state-level permit or license in Arkansas is the sales tax permit, sometimes called a seller’s permit, which registers your business for the Arkansas sales and use tax.
However, your business might need federal, state, and local permits/licenses to legally operate in Arkansas, depending on your industry and geographical location. This is true whether you form an LLC or any other type of business structure.
Learn more about state and local licensing in our Arkansas business license guide.
Other Arkansas Business Filing Fees
There are fees associated with other, optional business filings in Arkansas.
‘Doing Business As’ (DBA) Name
When an LLC is registered with the state, the LLC’s name is also officially registered. Some business owners choose to also file for a DBA name, known as a fictitious name in Arkansas.
You can file an Application for Fictitious Name with the Arkansas Secretary of State by mail or in person by printing, completing, and submitting Form DN-18/F-18 and paying the $25 filing fee to create a name other than your legal LLC business name. You can also file an Application for Fictitious Name online.
Learn more in our Arkansas DBA guide.
Certified Document Copies
You can get certified copies of your Arkansas business documents through the Secretary of State by completing a Records Request Form. The cost is $0.50 per page. There is an additional fee of $5 if the copies are to be certified.
Certificate of Good Standing
A Certificate of Good Standing is often required by banks and lenders.
How to Start an LLC in Arkansas
Forming an LLC yourself is easy; just follow the five steps below.
Five Basic Steps to Start an LLC in Arkansas
Step 1: Name Your Arkansas LLC
Step 2: Choose a Registered Agent
Step 3: File a Certificate of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 1: Name Your Arkansas LLC
When you name your Arkansas LLC, you’ll need to choose a name that:
- Is available for use in the state of Arkansas
- Meets Arkansas naming requirements
- Is available as a web domain
Check web domain (URL) availability with GoDaddy:
Find a Domain Now
Not sure what to name your business? Check out our free LLC name generator.
Step 2: Choose a Registered Agent
Arkansas LLCs are required to appoint a registered agent to receive service of process. Business owners can hire a registered agent service or appoint any Arkansas resident that is 18 years or older and is available during normal business hours at a specified address to receive service of process.
Recommended: Northwest offers one full year of registered agent services with their $29 (plus state fees) LLC formation package.
Step 3: File an Arkansas Certificate of Organization
To form an LLC in Arkansas, you must file a Certificate of Organization for Limited Liability Company with the Secretary of State.
For a closer look at the filing process, check out our Arkansas Certificate of Organization guide.
Step 4: Create an LLC Operating Agreement
Operating agreements for Arkansas LLCs are not required by Arkansas law, but it’s good practice to have one.
An operating agreement outlines the ownership and operating procedures of an LLC, ensuring that all members are on the same page and reducing the risk of conflict down the line.
Learn more in our Arkansas LLC Operating Agreement guide.
Step 5: Get an EIN
An Employer Identification Number (EIN) is a nine-digit number issued by the IRS to identify businesses for tax purposes. Think of an EIN as a Social Security number for your LLC.
To learn how to get an EIN for free, visit our How to Get an EIN Number guide.
LLC Cost in Arkansas FAQ
What is the cheapest way to start an LLC in Arkansas?
The cheapest way to start an LLC in Arkansas is to handle the registration process individually. In order to do this, you will need to follow these steps:
- Name your LLC
- Choose a registered agent: This can be a registered agent service or an individual.
- File the Arkansas Certificate of Organization: The filing fee for this is $50 by mail or in person and $45 online.
- Create an LLC operating agreement: This is usually not a legal requirement, but it is highly recommended.
- Get an EIN: This is basically your business’s Social Security number (SSN).
How much does an LLC cost per year in Arkansas?
Arkansas requires LLCs to file an Annual LLC Franchise Tax Report with the Secretary of State each year. The cost of filing the Annual LLC Franchise Tax Report is $150. This can be submitted online, by mail, or in person.
For a more in-depth analysis, see our How Much Does an LLC Cost? article.
How much does an LLC license cost in Arkansas?
An LLC is not a business license, but a business entity. Forming an LLC in Arkansas includes a filing fee of $50.
Arkansas does not require businesses to have a general business license. Licenses are only required for certain types of activities.
You may be required to pay additional fees if you choose to pay for a registered agent service, an LLC formation service, or an LLC attorney.
See our How to Start an LLC in Arkansas for more information on registering your business as an LLC.
Do LLCs pay taxes in Arkansas?
LLCs are a “pass-through” tax entity. This means that the LLCs profits are “passed through” directly to its owner(s), who then pay income taxes independently.
This is advantageous compared to a corporation’s tax structure because it means that LLC members are not taxed twice.
Having said that, readers should keep in mind that LLCs are very flexible when it comes to how they can be taxed, and — depending on the specifics — they can choose to be taxed as a pass-through entity, a C corp, and an S corp.
For more information, see our How Is an LLC Taxed guide.
What are the tax benefits of an LLC?
The tax benefits of an LLC will depend on how you choose to be taxed, as well as on whether you are operating as a single or multi-member LLC.
Generally speaking, LLCs can choose to be taxed in several different ways, including:
- As a sole proprietorship or general partnership
- As a C corporation
- As an S corporation
See our Single-Member LLC Taxes guide for a detailed overview of the tax benefits of having an LLC as a small business.
Do I need to open a business bank account for my LLC?
Even though you do not necessarily “need” to open a bank account for your LLC, this is generally highly recommended for several reasons.
For one, having a separate bank account can allow you to maintain your LLC’s corporate veil — meaning that you will not risk losing your limited personal liability under the law. A business bank account also offers financial benefits, including the ability to build business credit more quickly and access to larger business loans.
Interested in opening a business bank account? See our review of the best banks for startups in 2023.