How Much Does an LLC Cost in Arkansas

Written by: Mary Gerardine

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How Much Does an LLC Cost in Arkansas

The minimum Arkansas LLC cost is $50, which covers the processing fee for filing your Certificate of Organization.

Having said that, the total cost of forming an Arkansas LLC will depend on several factors, including your personal preferences and business needs.

In our How Much Does an LLC Cost in Arkansas article, we’ve broken down everything you need to know about the different costs associated with launching and maintaining an LLC.

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Arkansas LLC Cost

In the table below, you can find a summary of the main requirements of forming an Arkansas limited liability company (LLC) and their associated fees.

                                                         
RequirementFee
Certificate of Organization$45-$50
Registered Agent$0-$150+
LLC Name$0-$50
Operating Agreement$0+

Arkansas LLC Filing Fee ($50+)

To form your LLC in Arkansas, you must file a Certificate of Organization with the Arkansas Secretary of State and pay the applicable processing fee.

This amounts to $50 for submissions via mail or in-person, and $45 for online filings.

If you’re registering a foreign LLC (formed outside of Arkansas), you’ll need to file a Certificate of Registration instead.

This comes with a significantly higher fee: $300 for submissions by mail or in person, and $270 if you choose to file online.

Having said that, if you choose to use an LLC formation service, the cost will be a little higher as it will include a small service fee in addition to Arkansas’s state filing fee.

The fees for an LLC formation service can range significantly, but can start from as low as $29, increasing if you decide to purchase any additional offerings.

Note: For more details on the formation process, you can check out our Arkansas LLC Formation guide.

Arkansas Registered Agent ($0-$150+)

As part of filing your LLCs Certificate of Organization, you will need to appoint a registered agent.

This is a person or business entity that you must assign to receive tax, legal, and governmental correspondence on behalf of your Arkansas LLC.

The registered agent’s address must be a street address in Arkansas, and the agent is required to be located at that address during normal business hours.

Keep in mind that a post office box or “mail drop” may not be used as your registered agent’s address.

While you can act as your own registered agent at no extra cost, it’s often recommended to hire a professional service so you avoid any potential penalties or legal issues caused by non-compliance with state regulations.

Hiring a third-party service can also be a great way of ensuring that your personal information remains private.

The cost of a registered agent service varies depending on the provider in question, typically ranging from as low as $49 to over $150 per annum.

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Alternatively, you can find some of the top recommendations for professional RA services in our Best Registered Agent Services of 2024 article.

Naming Your Arkansas LLC ($0-$50)

When forming your Arkansas LLC, you’ll be required to pick a suitable name that’s available to use.

There are two potential costs to be aware of when naming your LLC.

Reserving Name

You have the option of reserving your preferred business name before submitting your Certificate of Organization to the Secretary of State in order to ensure that no one else can claim it.

To do this, you will need to submit the Application for Reservation of a Limited Liability Company Name form and pay a $25 filing fee.

If you choose to file online instead, you will incur a reduced fee of $22.50.

Note: Before you submit your reservation, make sure to check that your desired name is available by using this Name Search tool provided by the Arkansas Secretary of State.

When choosing a name for your LLC, it’s important to select one that corresponds to an available domain. This is because a matching domain ensures consistency between your LLC’s name and its online presence, which helps to strengthen its brand recognition and credibility.

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Doing Business As (DBA) Name

If you plan to operate your business under a name that differs from your LLCs official one, you’ll need to obtain a Doing Business As (DBA) name — which is also known as a Fictitious Name in this state.

To operate under a DBA name, LLCs will be required to submit an Application for Fictitious Name to the Secretary of State.

This comes with a $22.50 processing fee for online submissions, or $25 for filings done by mail or in person.

Keep in mind that in addition to filing the Application for Fictitious Name with the Secretary of State, a copy of this application will also need to be filed with the County Clerk’s office in the county where the LLC intends to conduct business.

Note: DBAs in Arkansas do not expire, and as such, if you need to cancel one, you will be required to submit a Cancellation of Fictitious Name form.

Arkansas LLC Operating Agreement ($0+)

While not mandatory, it’s good practice for LLCs to have an operating agreement.

This document defines the roles and responsibilities of the members or managers in your LLC and will help prevent and solve any business disputes that may arise later on.

While you can opt to hire an online service or business attorney to draft this document for you (which typically costs at least a few hundred dollars), it’s actually quite straightforward to do it yourself at no extra cost.

It’s also important to note that this doesn’t actually need to be filed with the Arkansas Secretary of State — it’s purely an internal document.

Additional Arkansas LLC Formation Costs

On top of the more common fees outlined above, there are a number of additional formation costs that LLCs in Arkansas may encounter depending on their circumstances.

We’ve summarized some of these additional costs below:

Local Business Licenses

In order to comply with the local-level regulations of your city and county, your business may be required to obtain some local business licenses.

While very few municipalities impose a general licensing requirement for businesses operating within their limits, your LLC might need a municipal license if it’s involved in certain activities.

For instance, businesses in Bentonville must register with the city, paying a one-time fee of $25 and an annual renewal of $12.50 in order to operate legitimately.

Certificate of Good Standing

A Arkansas Certificate of Good Standing is a document often required to open a business bank account; it can also be requested by lenders in order to check that your LLC is properly registered and legally authorized to conduct business in the state.

To get your Certificate of Good Standing, you’ll need to complete the following steps:

  • Search for Your Corporation: Begin by searching for your llc online through the Secretary of State’s website. Only LLCs that meet the qualifications will be provided with a link to purchase the certificate
  • Print Your Certificate: After verifying that your LLC qualifies, you can proceed to purchase and print the Certificate of Good Standing. This document is recognized as the official certificate and includes a unique authorization code for verifying its validity
  • Verification: You may use the authorization code on the certificate to verify its authenticity at any time

Keep in mind that the certificate comes at a cost of $25 and is available for download for 2 weeks from the time of purchase.

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Cost to Maintain an LLC in Arkansas

In addition to the cost of forming an LLC in Arkansas, there are also several ongoing costs you’ll be responsible for paying each year.

We’ve outlined these recurring costs associated with maintaining an Arkansas LLC below.

Franchise Tax and Annual Report

In Arkansas, all LLCs are required to submit an Annual Franchise Tax Report by May 1 each year.

When completing your Arkansas Franchise Tax Report, you will need to provide the following information:

  • The official name and postal address of your LLC
  • The contact details of your LLC
  • The Federal Tax Identification Number of your business
  • Your LLC’s registered agent’s name and address
  • The names of your LLC’s corporate governors and/or members
  • The formation date of your LLC

Keep in mind that you will have to file this report regardless of whether you register a domestic or a foreign LLC.

Registered Agent Maintenance

If you decide to take advantage of a professional registered agent in order to handle your legal documents, you’ll be required to pay an annual fee in return for their services. This fee commonly ranges between $45 and $300 depending on the provider and features you select.

While you’re not required to use a professional registered agent service, it’s highly recommended.

Taxes

In addition to the federal taxes your LLC is required to pay regardless of the state it’s based in, there are a variety of state-specific taxes in Arkansas you need to be aware of, including:

  • Sales tax
  • Employment taxes
  • Business privilege taxes
  • Property taxes

Additionally, there are various local taxes your LLC may need to pay depending on the municipality or county it’s based in, such as:

  • Sales and use taxes
  • Property tax

Arkansas vs Other States

When comparing Arkansas to other states in terms of LLC formation and annual maintenance costs, Arkansas sits around the median.

Both its formation fees and annual maintenance expenses are in line with the national average, making it a cost-effective option for many entrepreneurs.

Regardless, it’s important to understand that the best state to form your LLC will generally be the one in which you plan to primarily operate your business from.

This is because this makes it far easier to stay legally compliant on a number of levels, including taxation, licensing, and filing requirements, as you’ll only need to deal with one state’s set of rules.

LLC Cost in Arkansas FAQ

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

To dissolve an LLC business in Arkansas, you will need to file a Statement of Dissolution with the Secretary of State. This process comes with a fee of $45 if filed online or $50 if submitted by mail. Keep in mind that you must pay all outstanding taxes and fees, including submitting all past annual franchise tax reports, before you can successfully file for dissolution.

How do I start a small business in Arkansas?

According to Arkansas law, you will be required to select a business structure, register your business with the Secretary of State, and obtain any necessary licenses and permits in order to start your business. For more information, potential llc owners can have a look at our How to Start an LLC in Arkansas guide.

What is the difference between a sole proprietorship and an LLC?

A sole proprietorship is a business owned by one individual without forming a distinct legal entity, which simplifies operations but leaves the owner personally liable for any debts incurred. On the other hand, Arkansas LLCs provide limited liability protection, which safeguard personal assets from business debts, making them a popular choice for Arkansas business owners.

How to start an Arkansas LLC?

To start an LLC in Arkansas, you will need to file a Certificate of Organization with the Secretary of State and pay a $45 fee if you submit online, or $50 if you choose to submit by mail or in person. For additional details, please refer to our How Much Does it Cost to Start an LLC article.

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