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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.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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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.
Other Costs
- 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
F.A.Qs
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.
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.
Establishing an LLC in Arkansas can be a relatively simple and cost-effective process. However, once the LLC is formed, business owners must be prepared to meet ongoing maintenance requirements and expenses to ensure that their business remains in compliance with state laws and regulations.
One of the primary costs associated with maintaining an LLC in Arkansas is the annual franchise tax. This tax is assessed on all LLCs registered in the state and is used to help fund government services and infrastructure. The amount of the annual franchise tax is based on the LLC’s total assets or net income in Arkansas and must be paid each year to remain in good standing with the state.
Another cost to consider when maintaining an LLC in Arkansas is the annual report fee. LLCs are required to file an annual report with the Arkansas Secretary of State, which includes updated information about the company’s members, managers, and registered agent. This report must be filed each year and comes with a filing fee that must be paid in order to stay compliant with state regulations.
In addition to these ongoing costs, LLCs in Arkansas may also incur expenses related to business licenses and permits. Depending on the nature of the business, certain licenses and permits may be required in order to operate legally in the state. These costs can vary depending on the industry and location of the business.
It is crucial for business owners to budget and plan for these ongoing expenses associated with maintaining an LLC in Arkansas. Failure to pay the necessary fees and taxes can result in penalties, fines, and even the potential revocation of the LLC’s status.
While the costs of maintaining an LLC in Arkansas may seem daunting, it is important to remember that these expenses are necessary for ensuring the long-term success and compliance of the business. By understanding and planning for these costs, business owners can avoid potentially costly mistakes and keep their LLC in good standing with the state.
In conclusion, maintaining an LLC in Arkansas comes with certain costs and expenses that business owners must be prepared to meet. By budgeting and planning for these ongoing expenses, business owners can ensure that their LLC remains compliant with state laws and regulations, allowing for continued growth and success in the competitive marketplace.
In Conclusion
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.