LLC Cost in Arkansas – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.
arkansas_state_seal

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.

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

  • 100% accuracy guarantee

  • Worry-free service

  • Great customer support

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

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:

StateFiling FeeAnnual Fee/Biennial FeeSales tax
Arkansas LLC$45 (online)$50 (mail)$150 (annual)6.5% + local county rates
Missouri LLC$50 (online)$105 (mail)None7.18%
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

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

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.

The initial step to forming an LLC in Arkansas involves filing the Articles of Organization with the Secretary of State’s office. This process incurs a filing fee, the amount of which can vary depending on the state you are operating in. Once the LLC is officially established, there are ongoing maintenance costs that business owners must keep in mind.

One essential cost to factor in is the annual franchise tax that LLCs are required to pay in Arkansas. This tax is calculated based on the net income of the LLC and must be paid to the Secretary of State’s office by a specified deadline each year. Failing to pay this tax can result in penalties and the potential dissolution of the LLC.

Additionally, LLCs in Arkansas must file an Annual Report to the Secretary of State’s office. While this report does not have a significant cost attached to it, it is essential to ensure timely submission to maintain compliance and good standing with the state.

In terms of ongoing expenses, LLCs in Arkansas may also need to consider the cost of obtaining business licenses and permits required for their specific industry or location. These costs can vary widely depending on the type of business and the city or county in which it operates.

Aside from the direct costs of maintaining an LLC in Arkansas, business owners should also keep in mind the potential expenses associated with legal and financial services. It is common for LLCs to consult with lawyers or accountants to ensure they are meeting all legal requirements and maximizing their financial efficiency.

Furthermore, it is important for LLC owners to consider the cost of liability insurance to protect their business assets. While this is not a requirement in every state, it is a prudent investment to safeguard against unforeseen legal issues or financial challenges.

In conclusion, the cost of maintaining an LLC in Arkansas can vary depending on various factors, including the size and nature of the business. Business owners should carefully consider and budget for these costs to ensure the continued success and compliance of their companies. By prioritizing financial planning and staying informed about legal requirements, LLC owners can navigate the expenses associated with running their businesses effectively.

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.

Leave a Comment