An LLC in Arkansas costs $45 to form online or $50 by paper, and then $150 every year in franchise tax to stay in good standing. Those two numbers are what every Arkansas LLC pays. Depending on your setup, you may also pay for a registered agent service, a fictitious name, an operating agreement, or other optional filings. Here is what the full cost picture looks like.
The Filing Fee to Start the LLC
You form an Arkansas LLC by filing a Certificate of Organization with the Secretary of State. The fee is $45 if you file online through the Secretary of State’s portal, or $50 if you mail a paper form to Little Rock. The amount is the same whether your LLC has one member or several.1Arkansas Secretary of State. Domestic Limited Liability Company (LLC) Forms / Fees / Records Requests
Online filings typically clear within one or two business days. Paper filings can take several business days to a few weeks, depending on the office’s workload.
The $150 Annual Franchise Tax
Every Arkansas LLC owes a flat $150 franchise tax each year, no matter how much the business earned or whether it earned anything at all.2Justia Law. Arkansas Code 26-54-104 – Annual Franchise Tax It is due on or before May 1, and the payment goes in with a short franchise tax report that updates your LLC’s member or manager names and current address.3Justia Law. Arkansas Code 26-54-105 – Franchise Tax Reports Most owners file and pay online for faster processing.
This is the recurring cost people most often forget to budget for. If you form the LLC and do nothing else, you still owe $150 the following May.
What a Late Payment Costs
Miss the May 1 deadline and the Secretary of State adds a $25 late-filing penalty plus 10 percent annual interest on the unpaid tax and penalty.4Justia Law. Arkansas Code 26-54-107 – Computation of Tax – Penalty – Relief The total for any single year is capped at twice the original tax, so for a $150 bill the ceiling is $300 per delinquent year. Those numbers compound year over year if you fall further behind.
Keep ignoring the notices and the state can revoke your LLC’s authority to do business. You can reinstate by filing every missed report and paying all back tax, penalties, and interest, but reinstatement is no longer available after five years from the revocation date.5Justia Law. Arkansas Code 26-54-112 – Reinstatement of Corporations Past that point, the LLC is gone for good.
Registered Agent: $0 to About $300 a Year
Arkansas requires every LLC to keep a registered agent with a physical street address in the state. A P.O. box does not qualify.6Arkansas Secretary of State. Business Services FAQ The agent accepts legal papers and official notices on the LLC’s behalf.7Justia Law. Arkansas Code 4-38-115 – Registered Agent
You can be your own registered agent for free. The tradeoffs are that your address goes on the public record and you have to be available at that address during business hours. A professional registered agent service typically runs $50 to $300 per year and handles both of those issues.
Optional Fees You May Run Into
None of these are required of every LLC. Budget for the ones that apply to you.
Name Reservation
To hold a business name before you file, you can reserve it for 120 days. The fee is $22.50 online or $25 by paper.1Arkansas Secretary of State. Domestic Limited Liability Company (LLC) Forms / Fees / Records Requests
Fictitious Name (DBA)
If your LLC will operate under a name other than the one on its Certificate of Organization, file a fictitious name application for $25. The state returns a stamped copy, which you also have to file with the county clerk where your registered office sits (unless that office is in Pulaski County).8Arkansas Secretary of State. Application for Fictitious Name
Employer Identification Number
An EIN from the IRS is free and takes a few minutes online. You need one if your LLC has more than one member, hires employees, or files certain federal returns.9Internal Revenue Service. Get an Employer Identification Number The IRS never charges for one, so skip any third-party site that wants a fee.
Operating Agreement
Arkansas does not require you to file an operating agreement with the state, so this cost is up to you. Free templates are available online. Having an attorney draft a custom agreement typically costs $500 to $2,000 or more, depending on how complex the business is.
Statement of Authority
A Statement of Authority tells banks, title companies, and other third parties which members or managers can sign contracts or transfer property for the LLC. Filing one costs $25 by paper.1Arkansas Secretary of State. Domestic Limited Liability Company (LLC) Forms / Fees / Records Requests
Certified Copies and Later Amendments
A certified copy of your Certificate of Organization, which banks often want when you open an account, runs 50 cents per page with a $2.50 minimum, plus $5 for the certification.10Justia Law. Arkansas Code 4-38-1104 – Filing, Service, and Copying Fees Later changes to the LLC’s name, registered agent, or management structure require an amendment: $22.50 online or $25 by paper.1Arkansas Secretary of State. Domestic Limited Liability Company (LLC) Forms / Fees / Records Requests
A Note on State Income Tax
The $150 franchise tax is not an income tax. Arkansas treats most LLCs as pass-through entities, so the LLC itself does not pay state income tax. Each member reports their share of the profit on their personal Arkansas return and pays at the applicable individual rate. Arkansas also offers an elective Pass-Through Entity Tax that lets the LLC file and pay state income tax on behalf of all members.11Arkansas Department of Finance and Administration. Pass-Through Entity Tax Whether that election saves you money depends on your situation, and it is worth asking a tax professional before you decide.