Arkansas LLC Costs
Business owners often benefit from forming a limited liability company or LLC. It provides them with liability protection, special tax breaks, incentives, and a workable management structure. Often, small business owners and entrepreneurs worry that the process is complicated and overly expensive. However, it is a straightforward process that is worth the cost.
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Costs to start an LLC in Arkansas
LLC Certificate of Organization ($50)
Arkansas franchise tax fee ($150)
- In Arkansas, an LLC must pay a franchise tax fee.
- The franchise tax is due every year on May 1st.
- You can submit your annual franchise tax fee online using the Arkansas Secretary of State website.
- Or, you can complete the Annual LLC Franchise Tax Report and submit it by mail.
- The penalty for failing to submit your franchise tax fee is $25 plus interest, and you could face possible dissolution.
Arkansas registered agent fee (varies between $50 to $300)
- You will need to appoint a registered agent when forming an LLC in Arkansas.
- When you appoint a registered agent, you let them know that someone is physically available during business hours to accept subpoenas, tax notices, and other critical correspondence.
- You can appoint anyone as a registered agent as long as they meet the state requirements. That includes yourself.
- The cost of a registered agent in Arkansas will differ depending on the commercial service, the needs of the LLC, and state filing fees.
Fees to form a foreign LLC in Arkansas ($270 online)
- You must register as a foreign LLC if you have an existing LLC in another state and are expanding into Arkansas.
- You can register a foreign LLC online using the Arkansas Corporations Filing System.
- Or, you can complete the Application for Certificate of Registration of a Foreign Limited liability Company (Form FL-01) and submit it by mail or in person.
- The filing fee to register an Arkansas foreign LLC is $270 online or $300 by mail or in person.
LLC name reservation fee ($22.50 online)
- The state of Arkansas does not require you to reserve an LLC before formation.
- But, by reserving an Arkansas company name, you are ensuring that no one can register the same name before you are ready to form your LLC.
- Arkansas LLC names must be unique and meet the state naming requirements.
- You can reserve an Arkansas LLC name for up to 120 before formation.
- You can reserve the company name online using the Arkansas Corporation Online Filing System.
- Or, you complete the Application for Reservation of Entity Name (Form DN-18) and submit it by mail or in person.
- The cost to reserve an LLC name in Arkansas is $22.50 if you register online or $25 if filed in person or by mail.
DBA filing fees in Arkansas ($25 online)
- The business acronym DBA means ‘doing business as’ in Arkansas. The DBA, or assumed name, is any registered name an individual or business uses to operate that is not its legal name.
- In Arkansas, you must register a DBA if you use a business name that is not its legal name.
- You can register a DBA name online using the Arkansas Secretary of State website.
- Or, you can complete the Application for Fictitious Name (Form DN-18) and submit it by mail or in person.
- The cost to register an Arkansas DBA is $25 online, or $22.50 if you file by mail or in person.
Cost of certified document copies ($5)
- To obtain certified LLC documents in Arkansas, you must follow the Records Request Form Instructions and submit the proper forms.
- The cost for LLC documents in Arkansas is $5 and $.50 per page.
Arkansas Certificate of Good Standing ($25)
- Money lenders and financial institutions require you to submit a Certificate of Good Standing before letting you open a business bank account.
- You can order a Certificate of Good Standing online using the Arkansas Secretary of State website.
- Or, you can follow the instructions and submit a request for a copy of the Certificate of Good Standing.
- The filing cost for an Arkansas Certificate of Good Standing is $25.
Steps to start an LLC in Arkansas
Choose a business name
You will need to consider a few things when deciding on a company name in Arkansas.
- An Arkansas LLC must be unique and available for use.
- Your LLC name must meet all Arkansas naming requirements.
- It is good to check for web domain availability to keep branding simple.
You will use the Arkansas Secretary of State’s website to conduct a name search.
LLC name reservation fee
Arkansas does not require the reservation of an LLC name before formation.
The cost to reserve a company name in Arkansas is $22.50 online or $25 if you file by mail or in person. An LLC name is good for up to 120 days. Arkansas does not require you to reserve an LLC name.
Appoint an Arkansas registered agent
When forming an LLC in the state, you must appoint a registered agent in Arkansas.
The price for an Arkansas registered agent or service varies between $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Arkansas is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be an Arkansas resident or a registered agent service authorized to conduct business in the state.
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness has a stand-alone registered agent service for Arkansas LLCs. The price is $99 per year.
- Total Out The Door Arkansas LLC Formation Service Package – $39 a month and includes:
- Arkansas State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
- Economy – $79 plus $153 Arkansas filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
File Arkansas Certificate of Organization
You will file your Arkansas Certificate of Organization with the Secretary of State.
You can file your Certificate of Organization online using the Arkansas Secretary of State Online Filing System.
Or, you can complete the Certificate of Organization for Limited Liability Company (LL-01) and submit it by mail or in person.
The LLC cost to file an Arkansas Certificate of Organization is $50.
Arkansas does not offer any expedited LLC services.
Arkansas Secretary of State
1401 W. Capital Ave.
Little Rock, AR 72201
Form LL-01 will ask for specific information about an Arkansas LLC.
- LLC name and address
- Registered agent information
- LLC organizers’ name(s)
The fee in Arkansas for filing your LLC Certificate of Organization is $50.
Get an Arkansas LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
An EIN is a 9-digit number that acts as a Social Security Number for LLCs for income tax purposes. The IRS issues EINs for free.
In Arkansas, if you convert a sole proprietorship into an LLC, you will need to apply for an EIN.
Applying for an EIN is a simple process online through the IRS website.
Business banking for an Arkansas LLC
A best business practice is keeping your personal bank account separate from a personal one. It will protect the owner’s personal assets and credit scores.
Money lenders and banks in Arkansas will request a copy of the Certificate of Organization, an operating agreement, and an EIN before allowing you to do business banking.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Arkansas
Business attorneys understand the LLC formation process and will help keep it seamless. Retaining a lawyer also assists with handling business-related issues that may come up.
In most cases, a business attorney in Arkansas will offer first-time clients free consultations.
On average, a business lawyer in Arkansas will cost $300 per hour.
LLC taxes in Arkansas
- As an LLC in Arkansas, you are considered a pass-through entity. It means you will file your personal tax returns rather than your LLCs.
- You must register for a seller’s permit to sell physical products in Arkansas.
- Arkansas imposes a franchise tax of $150 due every year.
- The Arkansas state tax rate is 6.50%, and a max local and county rate of 5.125%.
- When hiring employees in Arkansas, you must register for Unemployment Insurance Tax with the Department of Employment Services.
- You must also enroll in Withholding Tax with the Arkansas Office of Tax and Revenue.
- Hiring a tax attorney is helpful when trying to avoid missed deadlines, penalties, and possible dissolution.
Business licenses and permits in Arkansas
The overall cost for business licenses and permits will vary depending on where the LLC is located and what type of business it is.
You will use the Arkansas Secretary of State’s website to locate the necessary licenses and permits.
A business licence in Arkansas averages varries between $50 to $1,000. The total cost of permits and licences will depend on where your LLC is, and the type of LLC.
City and county government agencies will have different processes and rules for licenses. You will want to contact your local government office to inquire about the process, price, and office hours.
Some Arkansas LLC documents may require a notarization from a notary public.
Government agencies typically have a notary public in the office if you are unable to locate one.
According to Arkansas state law, a notary public can only charge a max of $5 per notorial act.
Employer obligations in Arkansas
- In Arkansas, you have specific obligations if your LLC hires employees.
- A business must verify that all employees are eligible to work in the US using Form I-9 from the USCIS Website.
- You must enroll in a worker’s compensation insurance.
- In Arkansas, you must report all new hires to the Arkansas New Hire Reporting Center.
- You can find a complete list of Arkansas employer obligations.
Benefits of an Arkansas LLC
- Business banking is simplified when you form an LLC. Financial institutions will require you to open separate business and personal bank accounts. It reduces any future liability.
- LLCs in Arkansas have different compliance requirements than other business structures. For instance, when making business decisions, incorporations answer to shareholders and board members.
- LLCs are considered a pass-through entity in Arkansas. An LLC owner will file their personal tax returns rather than the LLCs.
- You help avoid double-taxation when you form an LLC in Arkansas. C-corporations are typically double-taxed.
- Arkansas has incentives that are available to LLCs. Advantage Arkansas and InvestArk are incentives for an LLC in the state.
How long does it take to register an LLC in Arkansas?
If you register an LLC online, it takes 2 to 3 business days for Arkansas to process. It will take 1 to 2 weeks to process a registration by mail.
Arkansas does not offer any expedited services.
How do I dissolve my Arkansas LLC?
You will need to dissolve your Arksansas LLC to avoid ongoing costs and state fees. You can file your articles of dissolution online with the Secretary of State.
The LLC filing fee for cancellation is $50 in Arkansas.
Are there publishing requirements for Arkansas LLCs?
Unlike Arizona and New York, Arkansas has no publishing requirements.
Does Arkansas have an annual report fee?
Arkansas does not have an annual fee. Instead, they impose an annual franchise tax.
Do I need a business operating agreement for my LLC in Arkansas?
An LLC does not have to submit an operating agreement to the State of Arkansas. However, having one file is always a good idea to prevent future internal misunderstandings. An operating agreement can be written or oral as long as it is in the company’s files.
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