How Much Does an LLC Cost in Arkansas? (2024 Filing Fees)

Starting an LLC in Arkansas is an exciting step, but it’s important to get a clear picture of the costs involved before you jump in. To file your LLC, you’re looking at around $45 for online submissions. On top of this, there’s an annual $150 Franchise Tax you’ll need to budget for.

But that’s not all—many people think it’s just about the initial filing fees, but there are other expenses to consider.

Are you ready to learn more about forming your LLC in Arkansas and what you need to budget for?

How Much Does an LLC Cost in Arkansas?

Starting an LLC in Arkansas involves several costs you should be aware of to avoid surprises:

• Filing Fee for Articles of Organization: The filing fee is $45 for online submissions or $50 for mail submissions.
• Foreign LLC Registration: If you’re registering an LLC formed outside Arkansas, you must file a Certificate of Registration, which costs $270 online or $300 by mail.
• Annual Fees: You’ll need to budget for the $150 Annual Franchise Tax and any additional reporting fees or taxes that depend on your LLC’s profits and activities.
• Registered Agent Services typically range from $100 to $300 per year.
• LLC Name Reservation: Reserving your LLC name costs $22.50.
• DBA Cost: Registering a Doing Business As (DBA) name costs $22.50.
• Certificate of Good Standing: If needed, this costs about $25.
• Other Fees: Don’t forget to account for any business licenses or permits specific to your industry, which can vary widely.

Understanding these costs will help you plan effectively and ensure your LLC remains compliant and ready for business.

LLC Costs in Arkansas (Formation Fees)

The following table outlines the key requirements and associated fees for forming an LLC in Arkansas.

Arkansas LLC Requirements	Cost
LLC Business Name Cost	$0
Articles of Organization	$45 (online)
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Franchise Tax	$150/annually
LLC Name Reservation Fee (optional)	$22.50
Certificate of Good Standing (optional)	$25
Foreign LLC Registration (optional)	$270
Fictitious Name (DBA) (optional)	$22.50
Arkansas Sales and Use Tax Permit	$50
Taxes	Varies
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in Arkansas	$195 – $749

Total Arkansas LLC costs range from $195 to $749. If you do everything yourself and skip the optional extras, you might only spend around $195. However, if you decide to pay for additional services and requirements, your costs could go up to between $400 and $749.

The first mandatory expense is the $45 fee for filing the Articles of Organization online, which is essential for officially establishing your LLC. You will also need to budget for the Annual Franchise Tax, which costs $150 annually.

Now, let’s discuss the optional costs.

Obtaining an Employer Identification Number (EIN) is free from the IRS, and securing an LLC business name costs $0.An Operating Agreement is recommended but can be obtained at no cost using services like Northwest if you want to reserve your LLC name, typically costing you $22.50.

You may also want a Certificate of Good Standing, which costs $25. If you plan to register a foreign LLC in Arkansas, that incurs a fee of $270. If you wish to operate under a different name (DBA), you must pay an additional $22.50.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300. Also, remember that taxes and the Arkansas Sales and Use Tax Permit cost $50, varying taxes based on your specific business activities.

Arkansas LLC Business Name Cost ($0)

When starting an LLC in Arkansas, naming your business has no direct cost. This means you can reserve a name without spending money.

However, the name you choose must comply with specific requirements. It must include “limited liability company” or an acceptable abbreviation like “LLC.” This ensures clarity about the type of business entity you are operating. You can check name availability and compliance through the Arkansas Secretary of State’s business search tool.

You can hold a business name for up to 120 days. This reservation allows you to plan without rushing to file the Articles of Organization.

After forming your LLC, you can use your chosen business name as long as it remains active and compliant with state rules.

Arkansas Articles of Organization ($45)

You must file the Articles of Organization to create an LLC in Arkansas. This document is essential for officially establishing your business. You can submit it online or by mail.

The filing fee is $45 for online submissions, while mail filings might have a slightly higher fee.

The Arkansas LLC processing time can vary based on several factors, including the filing method and the current processing times of the Arkansas Secretary of State.

If you file your Arkansas LLC online, you can expect to have it up and running in 3-7 business days. However, if you file by mail, the process may take approximately 4-5 weeks. 

LLC Operating Agreement Cost in Arkansas ($0 with Northwest)

Creating an LLC Operating Agreement in Arkansas costs nothing when you go through Northwest Registered Agent. This agreement is important as it outlines your LLC’s management structure and operating procedures.

You do not have to pay any fee to draft this document. It acts as a guide for members and managers. Without it, your LLC might face uncertainty in decision-making.

Many states do not require an Operating Agreement, but having one is smart. It helps establish rules and can prevent conflicts. In Arkansas, having this agreement can provide clarity in your business operations.

You can customize it according to your needs. With Northwest, you can access templates that simplify the process.

Although it is not required by law in Arkansas, an operating agreement is highly recommended. By having one, you protect your rights as a member and enhance the credibility of your LLC.

Arkansas Registered Agent Fee ($0-$300/year)

When setting up your LLC in Arkansas, you’ll need to consider the cost of a registered agent. There are options available to fit different budgets.

There is no fee to be your own registered agent. However, you must provide your name and address to receive important legal documents.

Hiring a professional Arkansas registered agent service typically costs between $100 and $300 per year. For instance, LegalZoom charges about $249 annually, and ZenBusiness offers its service for $199 annually. These services can provide extra support and privacy protection.

Northwest Registered Agent stands out with a special offer. They provide free registered agent service for the first year if you use them to form your LLC. After that, their fee is $125 annually, which is competitive compared to other options.

EIN Cost in Arkansas ($0 from the IRS website)

Getting an Employer Identification Number (EIN) in Arkansas is free. You can obtain it directly from the IRS at no cost. This makes getting your business up and running easy without extra fees.

There are several options for applying for an EIN: online, by mail, or by phone. The online application is the quickest method. It takes only a few minutes, and you receive your EIN immediately.

Getting your number may take a few weeks if you apply by mail. For international applicants, the IRS has a phone number for assistance. Remember that the person calling must be authorized to answer questions about the application.

Remember, having an EIN is essential for business tax purposes and opening a business bank account. It’s a key step in creating your LLC in Arkansas, adding to the ease of starting your own business.

Annual Franchise Tax ($150)

In Arkansas, every LLC must pay an annual franchise tax of $150. The Arkansas Corporate Franchise Tax Act requires this tax and applies to all registered businesses, regardless of income or activity level.

You can pay this tax using several methods: online, by mail, or in person. If you prefer to pay by fax, you should print and complete the Franchise Tax Payment form available on the Arkansas Secretary of State’s website.

It’s important to remember that this tax is due every year. You must file the Annual Franchise Tax Report and your payment to stay compliant. Failing to pay the tax may lead to extra fees, penalties, or even the loss of your business’s authorization to operate in the state.

The flat rate of $150 does not change based on your business’s success. Knowing this can help you budget effectively for your annual costs.

Fictitious Name/DBA Cost in Arkansas ($22.50)

If you want to operate your LLC under a different name, you must file a DBA or “Doing Business As” name. In Arkansas, this process is straightforward and comes with specific costs.

The fee for filing online is $22.50, which is convenient if you prefer a quicker method. If you file by mail or in person, the fee increases slightly to $25.00. Both options still represent a reasonable cost for registering a business name in the state.

It’s important to check for any restrictions on your chosen name before submitting your DBA. Ensuring that your name meets Arkansas trade name requirements helps avoid delays in the filing process.

Once your name is approved, you can use it to conduct business activities under that name.

LLC Name Reservation Fee in Arkansas ($22.50)

When starting your LLC in Arkansas, you might want to reserve a name before officially forming the business. The name reservation fee is $22.50. This is a helpful step if you are not ready to file your LLC but want to ensure that your desired name is held for you.

You can reserve a name for 120 days. This gives you time to finalize your plans while keeping the name you want.

To reserve your name, complete the appropriate online form or submit a paper application. The process is straightforward and can often be done quickly.

This reservation is especially useful in a competitive market. It helps prevent others from using the name you plan to use. Remember, once your time runs out, you must either register your LLC or apply for another name reservation if you need more time.

Arkansas Certificate of Good Standing ($25)

In Arkansas, a Certificate of Good Standing costs $25. This certificate is an important document for your LLC. It shows that your business is registered and compliant with state laws.

You can request this certificate through the Arkansas Secretary of State. It is often needed for various business activities, such as applying for loans, opening bank accounts, or expanding your business.

The process of obtaining the certificate is straightforward. You can apply online or by mail, but applying online may be faster and more convenient.

Once your request is processed, you’ll receive the certificate. Keep in mind that this document typically has an expiration date. Check when you may need to obtain a new one.

Arkansas Foreign LLC Registration Fee ($270)

If you have an LLC formed in another state and want to operate in Arkansas, you must register as a foreign LLC in Arkansas. The registration fee for this process is $270 if you file online.

It is important to ensure your LLC is in good standing in its home state before applying. If everything is in order, your application will be processed efficiently.

After you file, expect to receive your Certificate of Foreign Qualification, which allows your LLC to conduct business in Arkansas legally. Next, appoint a registered agent in Arkansas to handle legal documents for your foreign LLC.

Arkansas Sales and Use Tax Permit Fee ($50)

When starting a business in Arkansas, you’ll likely need a Sales and Use Tax permit to charge sales tax on your products and services. The state does not require a general business license, but this permit is essential.

To obtain the permit, you must register with the Arkansas Department of Finance and Administration. The registration fee is $50. This fee is non-refundable and must be paid electronically when you submit your application.

Once registered, remember that the permit does not need to be renewed annually. However, if your LLC stops operating in Arkansas, you may need to reconsider your permit status.

Arkansas LLC Taxes (varies)

Your Arkansas LLC faces multiple taxes, which can cause costs to vary greatly. Some common taxes include:

• Federal Taxes
• State Income Tax
• Local Income Tax
• Business Taxes
• Self-Employment Taxes
• Sales Tax (also known as sales and use tax)
• Payroll Tax (if you have employees)
• Property Tax (if your LLC owns the property)

The specific taxes your LLC must pay depend on various factors, such as your industry and the level of business activity. Since every business is unique, estimating your total tax costs is hard.

For state income tax, Arkansas has a personal income tax that varies from 0.09% to 4.7%. The rates depend on your net income, which can affect how much you owe.

To make managing your taxes simpler, register for the Arkansas Taxpayer Access Point. This online platform allows you to file taxes easily and stay organized.

Arkansas LLC reinstatement fee ($0)

In Arkansas, if your LLC has been suspended or administratively dissolved, you can reinstate it without a fee. This means that you can get your business back on track without any financial burden for the reinstatement process.

You must file the necessary paperwork to reinstate your LLC with the Arkansas Secretary of State. This paperwork usually includes forms that detail your LLC and its previous status.

Remember that while there is no fee for reinstatement, you should also resolve any outstanding obligations. This may include unpaid taxes or penalties. It’s important to ensure everything is in order before completing the process.

Arkansas LLC dissolution fee ($50)

When you decide to dissolve your LLC in Arkansas, you must pay a $50 fee. This payment is necessary to process the dissolution paperwork with the Arkansas Secretary of State.

Filing the necessary forms is straightforward. You must submit the Statement of Dissolution along with your payment, either online or through mail.

Make sure to prepare for the dissolution resolution as well. LLC members must vote to agree on dissolving the business. If you have an operating agreement, refer to it for details on the voting process. If not, all members must consent to proceed.

Once the fee is paid and the paperwork submitted, the state will process the dissolution. Keep a copy of your filed documents for your records.

Arkansas LLC Change of Registered Agent Fee ($0)

Changing your registered agent in Arkansas is straightforward. The state does not charge a fee for this change, making it easy to update your agent as needed.

Your registered agent plays an important role. They receive legal documents and state notifications on behalf of your LLC. If your current agent is no longer available, you can quickly switch to a new one.

It is important to have a reliable registered agent. The agent needs to have a physical address in Arkansas and be available during regular business hours.

With no fee attached, updating your registered agent is a cost-effective way to ensure that your LLC complies with state regulations. This allows you to focus on running your business without added financial concern.

What is the Cheapest Way to Start Arkansas LLC?

Starting an LLC in Arkansas can be done in several ways. You can file online or by mail; each method has its costs. The state filing fee is $45 when you submit your Articles of Organization.

If you decide to file online, the fee is $45. Filing by mail costs a bit more, at $50 when you include postal costs. The easiest and cheapest method is to file online. You save time, as you can complete the process quickly.

Another option is using a service to help with filing. For example, some services charge around $29 plus the state fees. This route assists but adds to your costs.

While using a service can be helpful, doing it yourself is more cost-effective. You must fill out the necessary forms and understand what to do, but it simplifies the process and keeps expenses low.

One downside to filing online is that you may feel unsure about the paperwork without help. Additionally, if you encounter any mistakes, you might face delays. It’s important to be careful when filling in your details to avoid any issues.

So, filing online directly with the state is the cheapest way to start an LLC in Arkansas. It’s straightforward and keeps your costs to a minimum.

Should You Use an LLC Formation Service in Arkansas?

When starting an LLC in Arkansas, you might wonder if using a formation service is the right choice for you. There are several benefits to consider.

• Expert Guidance: Services like Northwest Registered Agent offer access to knowledgeable LLC formation experts and attorneys who guide you through the process, ensuring no important steps are missed.
• Privacy Benefits: Using a formation service helps keep your personal information private. Your name and address won’t be publicly available, offering added privacy protection.
• Compliance Assistance: A reliable formation service helps you stay compliant with state laws by managing deadlines and reminders, reducing the risk of paperwork-related stress and potential penalties.

On the downside, these services might come with a fee. While they can save you time and trouble, the cost could be a consideration if you’re working with a tight budget.

Ultimately, an LLC formation service can be a smart choice if you value support and want to avoid legal missteps. It gives you the freedom to focus on your business instead of paperwork.

Frequently Asked Questions

How much does it cost to dissolve an LLC in Arkansas?

You must file a Certificate of Dissolution to dissolve an LLC in Arkansas. This document costs $50, which makes the process cost-effective.

How much does it cost to reinstate an LLC in Arkansas?

If your LLC is administratively dissolved, you can reinstate it by filing the Application for Reinstatement. There is no filing fee for this application.

Do I need an Arkansas address for an LLC?

Yes, your LLC must have a registered office in Arkansas. This address will be used for legal notices and must be a physical address, not a P.O. Box.

Do I need to hire an attorney to form an LLC in Arkansas?

Forming an LLC in Arkansas does not require hiring an attorney. Many people complete the process independently by following state guidelines and using online resources.

Should I hire an LLC formation service in Arkansas?

An LLC formation service can simplify the process and help ensure all paperwork is completed correctly. This can benefit those who prefer assistance or are unfamiliar with the requirements.

Are there penalties for paying my fees late in Arkansas?

Yes, if you miss the deadline for paying your annual franchise tax, penalties and interest may apply. It’s essential to stay current with all fees to avoid additional costs.

What happens if I do not file my Arkansas LLC annual report?

Failing to file your annual report can result in the administrative dissolution of your LLC. This means your business will no longer be recognized legally, which can lead to financial and legal issues.