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.
When forming an LLC in Arkansas, there are several different costs to consider. Some expenses apply to all LLCs in the state, while other costs apply only to specific types of businesses. If you’re unsure about the costs of operating your LLC, consider contacting an attorney. They can give you the information you need and provide you with peace of mind.
If you plan to operate an LLC in Arkansas, you will need to pay payroll taxes and sales taxes. These can vary depending on your industry and the amount of revenue your business generates. Additionally, you may need to apply for a business license in your locality. Depending on your location, you could pay a fee that varies from $20 to several hundred dollars. The type of license you require will depend on your industry.
Businesses with employees must also register for unemployment insurance taxes. You will also need to file an annual franchise tax report in the state. Failure to do so can lead to severe penalties.
Your LLC will need a business bank account to separate your personal assets from those of your business. You will also need a registered agent. This person will serve as an agent for any legal documents you need to provide to the state. He or she will also accept legal documents and respond to tax-related correspondence. Most companies that offer registered agent services will include this service in their formation packages.
Another important document you will need is an Operating Agreement. An Operating Agreement is a contract between you and your LLC that outlines how the LLC will operate and who will be responsible for managing it. It will help you avoid future disputes. Often, you can find these agreements online. For example, the Northwest Registered Agent offers one for free for the first year.
In addition to these fees, your business may need to pay additional taxes. Local and federal taxes can vary by county, city, and other factors. While many of these taxes are one-time costs, you may also need to renew certain licenses annually. Aside from paying taxes, you’ll need to file a franchise tax report, and if you fail to do so, you may lose your LLC.
If you have a physical retail store in Arkansas, you will need to register for a sales tax permit. You may also need to register for a zoning permit or alarm permit. Each state has its own business licensing laws, so you will want to check the requirements in your area.
There are also a variety of professional licenses and permits that you’ll need to obtain. Besides a general business license, you may need a license for a specialized industry, such as an architect or attorney. Additional fees may be required to file and renew these licenses, depending on your business and the nature of your work.
Creating an LLC is a complex process that requires a lot of paperwork. You’ll want to consult with a lawyer if you’re planning to set up an LLC in Arkansas. Alternatively, you can use a business formation service to help you with the formation of your LLC. Many of these services offer free LLC formation plans, but you’ll need to pay for other services.
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.