Perhaps you are hoping to form an Arkansas LLC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Arkansas.
On this page, you’ll learn about the following:
Arkansas LLC Cost of Filing
Here are the costs involved in forming an LLC in Arkansas.
Cost of Filing Formation Certificates
The Arkansas Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Arkansas Secretary of State.
Arkansas Domestic LLC
- Online Filing costs $45
- Franchise Tax/Annual Report filing costs $150
- Name Reservation Fee costs $25
- By mail: Fill out the Application Form PDF, and submit it to the following address: Arkansas Secretary of State, 1401 W. Capitol, Suite 250, Little Rock, AR 72201, costs $50
Arkansas Foreign LLC
- Online Filing Costs $270
- Franchise Tax/Annual Report filing costs $150
- Name Reservation Fee costs $25 (online)
- By Mail: Fill out the Application form PDF, and submit it to the following address: Arkansas Secretary of State, 1401 W. Capitol, Suite 250, Little Rock, AR 72201, costs $300
Visit the Official Arkansas Secretary of State website to learn more about the LLC Filing Fees.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also because it would be faster. You won’t have to wait in a queue in doing so.
Arkansas LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Arkansas, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Arkansas Department of Revenue for regulatory boards or agencies requiring licensing.
Arkansas LLC Taxes to be Paid
Arkansas State Income Tax
The State Tax in Arkansas varies between 1.125% to 6.925% depending on the total amount of taxable income. This tax is levied on any money that you pay to yourself as a business owner.
Arkansas Sales tax
The sales tax varies from county to county in addition to the standard sales tax at the rate of 6.5%.
Federal Self-Employment Tax
The Self-employment tax is imposed on any profit that you draw from your LLC business in the State of Arkansas. The current rate is 15.3%.
Employer Payroll Tax Withholding
The employers operating their business in the State of Arkansas must withhold payroll tax from their employees at the rate of 7.65% of their taxable salary.
Cost Comparison Among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Arkansas, read the table below:
|State||Filing Fee||Annual Fee/Biennial Fee||Sales tax|
|Arkansas LLC||$45 (online)$50 (mail)||$150 (annual)||6.5% + local county rates|
|Missouri LLC||$50 (online)$105 (mail)||None||7.18%|
|Tennessee LLC||$300||$300 (annual)||7% + local county rates|
|Louisiana LLC||$100||$35 (annual)||4.45%|
|Oklahoma LLC||$100||$25 (annual)||4.5%|
Arkansas is one of the smaller states west of the Mississippi River. It has diverse landscapes. The State has witnessed significant economic growth and is ranked highly in food processing units. Other major sectors include health care, education, and infrastructure.
- Arkansas Name Reservation: $22.50 for online filing or $25 by mail
- Doing Business As (DBA): $22.50 for online filing or $25 if filing by mail
- Certified Document Copies: $5 + $1.50 per page.
- Certificate of Good Standing: $25
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Arkansas LLC: $45 for online filing or $50 by mail
How Much Does It Cost to Maintain an LLC in Arkansas
To maintain an LLC in Arkansas you will need to pay an annual fee of $150 along with income tax (1.125% to 6.925%), sales tax (6.5% + local county charges) and federal taxes.
If you’re starting an LLC in Arkansas, you’ll want to know how much it will cost to maintain it. An LLC is a limited liability company that offers protection for its owners from business debts and liabilities. Maintaining an LLC requires paying annual fees and adhering to certain requirements.
The first step in understanding how much it will cost to maintain an LLC in Arkansas is to calculate the filing fees. LLCs in Arkansas must pay a filing fee to the Arkansas Secretary of State when they register their business. The fee is $45 for a domestic LLC, and $50 for a foreign LLC. In addition, the business must pay an additional $25 fee to the Arkansas Secretary of State if it wishes to do business in the state.
Aside from the filing fees, businesses must also pay annual fees to the Arkansas Secretary of State. These fees are due each year and are $45 for a domestic LLC, and $50 for a foreign LLC. Businesses must also pay an additional $25 fee to the Arkansas Secretary of State if they wish to do business in the state.
In addition to filing fees and annual fees, businesses must also pay taxes. LLCs in Arkansas are subject to state income tax, which is 5%. Businesses must also pay a franchise tax to the Arkansas Department of Finance and Administration. The franchise tax is $150.
LLCs are also subject to local taxes. Depending on where the business is located, businesses may be subject to local sales taxes, property taxes, and other taxes. Businesses should check with their local tax authority to determine what taxes they are required to pay.
Finally, businesses must also pay fees to maintain their LLCs. These fees include the cost of filing annual reports with the Arkansas Secretary of State, as well as the cost of obtaining and filing any necessary permits and licenses. Businesses may also need to purchase insurance to protect their business and its owners.
Overall, the total cost of maintaining an LLC in Arkansas can vary greatly depending on the size and scope of the business. However, businesses should plan on paying filing fees, annual fees, taxes, and other fees. Businesses should also factor in the cost of insurance and any necessary permits and licenses.
By understanding the costs associated with maintaining an LLC in Arkansas, businesses can plan their finances accordingly. By doing so, businesses can ensure that their LLC is in compliance with state and local laws and regulations, and that their business is protected.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Arkansas is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.