How to Start an LLC in Arkansas (AR LLC 2022)


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How to Start an LLC in Arkansas: If you’re looking to start an Arkansas LLC for $0, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC for free in Arkansas. However, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost $0.

On this page, You’ll find all the steps that must be taken to ensure that your Arkansas LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂

Arkansas LLC

How to Start an LLC in Arkansas

An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.

If you wish to start an LLC, you must file your Certificate of Organization with the State and pay a filing fee of $50. While it’s the most important step, it’s not the only one. There are 4 other crucial steps to follow to get your LLC formed in Arkansas. Below mentioned all 5 steps that explain everything you need to do to start an Arkansas LLC in 2022. Let’s get started! You can always hire a professional LLC formation service in Arkansas to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.

Step 1: Decide a Name for Your Arkansas LLC

Arkansas name your llc

The first step while forming a limited liability company in Arkansas is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.

LLC Naming Guidelines in Arkansas

There are a few specific requirements all the LLCs in Arkansas have to follow while naming their Company. Some of the most important requirements are as follows:

  • Your business name should be available and no other existing business in Arkansas can have the same name. TailorBrands offers unlimited business name searches at $0.
  • “Limited Liability Company”, “LLC”, “L.L.C.”, “LC”, “L.C.”, and “Limited Company” – any one of these has to be used as a suffix in your business name.
  • You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
  • Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Arkansas State Government are fulfilled.
  • (Optional) It’s better to name your business something for which your desired domain is available.
Important Links –Submit Offline Form to –
Arkansas Business Entity Search – Online Name Search
Name Reservation Form – PDF
Arkansas LLC Name Search Guide – Instructions
Secretary of State
Attn: Business and Commercial Services Division
1401 W. Capitol Street, Suite 250
Little Rock, AR 72201

Reserve Business Name for Future

If you do not wish to file your LLC right now, but want to hold the name you have decided, then you can reserve your LLC name for 120 days. To keep the name, you must file a name reservation application and pay $22.5 (Online) and $25 (by mail or in-person) to reserve your name with the Arkansas Secretary of State. You can renew your LLC name after 120 days only once.

Doing Business As (DBA) or Trade Name

Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Arkansas Secretary of State by submitting the Form (Assumed Name Certificate) by mail or in person, along with the filing fee of $25.

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Apart from LLC formation, TailorBrands offer DIY website templates and incredible logo designs at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc. Here you can get everything you need for your business in one dashboard.

Do I have to include LLC in my company email/domain?

It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.

Step 2: Assign a Registered Agent in Arkansas

Arkansas registered agent

The second step to forming an LLC in Arkansas is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Arkansas. Hence, hiring a competent Arkansas Registered Agent for your LLC is necessary. 

Make sure your registered agent is a resident of Arkansas or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $49/year), you also get registered agent service and other services at a very reasonable price.

LLC Service

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$299 + State Fees

  • Turnaround in a few days

  • EIN & Website Included

  • Operating Agreement Included

These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Arkansas. Some LLC formation services also offer standalone Arkansas registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.

You can change your existing registered agent if they want to leave the job or they leave for any other reason. To change the registered agent, you must fill out the change of registered agent form and mail them or submit them online. For more information, read how to change a registered agent in Arkansas.

Who Can Be a Registered Agent?

A person above 18 years of age and has a physical address in the state of Arkansas can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One is responsible for handling all the legal documents on the LLCs behalf.

Can I Be My Own Registered Agent?

Yes, you can be your own registered agent if you are a resident of the state of Arkansas and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Arkansas.

Why Shouldn’t I be My Own Registered Agent?

There are a few reasons why you shouldn’t be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won’t be easy for you as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.

What is Piercing the Corporate Veil in LLC?

If an LLC is sued in Arkansas, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are not separated anymore. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.

Step 3: File Certificate of Organization in Arkansas

Arkansas certificate of formation

The third and most important step in forming an LLC is to file the Certificate of Formation. This Arkansas Certificate of Organization is a legal document that is required to register your business with the Arkansas Secretary of State. It costs $50 (online or by mail) to file your formation certificate in Arkansas. (Read more on LLC cost in Arkansas).

The Certificate of Formation includes details like the name of the LLC, the registered agent’s name, address, employees’ details, and the structure of the company (member-managed or manager-managed). Before hiring employees in Arkansas LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) in other states to Arkansas, you must register as an Arkansas Foreign LLC.

How to File Online

Go to the Secretary of State Online Service. You will get the list of important forms on that page. Scroll down to the Domestic LLC option to find LL – 01 form. Also, you can click on the button below to get the form. Read more about the Arkansas Certificate of Organization for online registration.

How to File by Mail

If you prefer filing real-life forms for your LLC registration, you can download form LL-01. Read the form thoroughly, fill it out, and send it to the address mentioned below.

Mailing Address: Arkansas Secretary of State
1401 W. Capital Ave.
Suite 250
Little Rock, AR 72201

Processing Time: Normally, it takes around 7 business days (approx) to get your LLC formed in Arkansas. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well. However, the document processing time can be changed due to various factors.

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Every LLC owner has to pay the filing fees to register their business in Arkansas. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Arkansas.

Step 5: Create Your LLC Operating Agreement in Arkansas

Arkansas operating agreement

Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

When it comes to filing an Arkansas LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Arkansas LLC later. Hence, having an operating agreement may not be necessary but it is surely ideal. The operating agreement guide will tell you everything about it.

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The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂

Step 5: Filing an LLC EIN in Arkansas

Arkansas file EIN for llc

The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter. 

EIN is needed when the LLC hires employees. Hiring employees in Arkansas LLC requires following specific rules and regulations. On the other side, EIN for Arkansas foreign LLC should be obtained if your LLC is based in other states.

To obtain EIN (aka FEIN), one must fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.

Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999

Fax: (855) 641-6935 | Fee: Free

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Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.


Congratulation, you are now done with all the necessary steps to form your Limited Liability Company in Arkansas. If you do it yourself, it should take you a long time to understand and do all the steps properly.

However, if you use TailorBrands, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.


After Starting Your Arkansas LLC

After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.

Apart from that, there are a few things you need to take note of,

This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.

Cost of Starting an LLC in the State of Arkansas

LLCs can be formed for $0. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Arkansas must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Arkansas,

Fees/TaxAmount to be Paid
Name Reservation Fee
Certificate of Formation Fee
Franchise Tax
Sales Tax
$25 for 120 days
$50
$150
6.5%

In Arkansas, LLC name reservation is mandatory. If you wish to hold the name for some time (120 days) without registering your LLC, then you can do that online. It can be renewed by paying $25 for another 120 days. But you can renew it only once before you register your LLC. In some states, Name Reservation is not mandatory. Read our guide on LLC costs in Arkansas for more information.

According to the Franchise Tax rule, LLCs have to pay this tax on a yearly basis. Annual Franchise Tax reports are considered to be the annual revenue report or annual report of the LLC. If you evaluate LLC costs in Arkansas, the amount of Franchise tax is not as high as for any other form of business ownership. 

Arkansas Foreign LLC

If you are interested in forming a Foreign LLC in this state, you need to file the Certificate of Foreign LLC to the Arkansas Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Single-member LLCs are taxed as sole proprietorships by default. But you can choose what type of tax structure you want for your LLC at the time of business registration. There are some federal taxes to be paid, such as federal income taxes. 

Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Arkansas SOS to form your foreign LLC in the state. To know more, check out our guide on Arkansas Foreign LLC.

Reasons to Start an LLC in the State of Arkansas

Arkansas ranked 8th in the State Business Tax Climate Index and 5th for the cost of living. Currently, the state has 36,000 active LLCs, including domestic and foreign. Along with various tax benefits, Arkansas has a few more factors that are certainly beneficial to starting an LLC there. 

Growing Economy

Arkansas has a business-friendly atmosphere for LLCs. Over 7000 LLCs are formed in a year in Arkansas. The state has earned 5th position in the Nationwide index for cost of living and 8th rank for business tax climate. 

Tax Benefits

  • ArkPlus – Qualified businesses can get an income tax credit of up to 10% of the total capital investment under ArkPlus for specific projects. Depending on the employee payroll, the companies get qualified for the program. 
  • Advantage Arkansas Credit – Under this program, an income tax credit of up to 4% of the new-hire employee payroll can be received. This kind of credit will be available only if your company or business can generate full-time jobs in the state. 
  • InvestArk – Under this program, qualified companies can enjoy up to 7% of the total project expenditure as a credit. The LLCs, in this case, have to operate from within the state for at least a couple of years. This tax credit falls under Sales Taxes, and they are non-refundable taxes. Read more on Arkansas’ classification of LLC tax.

Unused Credit

If your LLC has unused credits in Arkansas, it will be carried forward to the next year. For up to 9 years, the unused credits will be carried forward.

Removal of Unwanted Partners

According to the LLC Act in Arkansas, filing members’ names are not mandatory at the time of formation. However, it is needed at the time of submitting the Annual Report, which is kept confidential. In this situation, even if the LLC agreement does not prohibit any member from participating, it does not allow them to participate as well. That means if the assignor wants, he/she can remove any partner without any hassle. 

It is easy and cost-effective to start an LLC in Arkansas. Especially with so many benefits, you can smoothly start and operate LLC in the state of Arkansas.

Best Business to Start in Arkansas

Are you about to form an LLC in the state of Arkansas, then you must be known to the best and most profitable niches of Arkansas. If no, then you should go through the below-mentioned information to know the most profitable businesses.

Poultry Farm

The first niche that is contributing the most to the Arkansas GDP is poultry. Arkansas is known as the rural state of the United States Of America, due to which the opportunity of this farm-based business is very high. Arkansas is known to deliver poultry-based products to most of the country’s states and nearby countries also. If someone is interested in living in remote areas and wants to work on farms, then this is the best option.

Agricultural Business

The next business is the agricultural business which is also one of the biggest farm-based businesses. The crops grown the most in Arkansas state are soybean, corn, millets, sorghum, wheat, cotton, etc., which are required for a healthy human diet. The industry has many businesses established, but the increasing demands make more business spaces enter the field and show their talents.

Along with producing these products, there is an option of opening up a manufacturing unit where one can process this raw material. It will increase the value of raw grains from a customer point of view and profits from a business perspective.

Construction Equipment and Machinery

The construction business is also on a hike in Arkansas state. Those who don’t know the fact should know that Arkansas is the first producer of construction equipment used for heavy-duty work and is still a milestone in the field. That is why people still trust the machinery made in Arkansas, making it a profitable business option.

Some small business opportunities an individual can grab are:-

  • Digital businesses (Home-based)
  • Restaurant business
  • Daycare services

Arkansas LLC Formation Review

Time needed: 5 minutes.

Just to recap, here are the easy steps again when forming an LLC in Arkansas. Click on the steps in this list to read the full detail.

  1. Name your Arkansas LLC

    The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
    name your llc

  2. Choose a Registered Agent

    In Arkansas, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
    registered agent

  3. File a Formation Certificate

    Filing a formation certificate is necessary when forming a Limited Liability Company in Arkansas. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    articles of organization

  4. Create an Operating Agreement

    An operating agreement is not a strict requirement in Arkansas but something encouraged when you start an LLC to avoid future conflicts.
    operating agreement

  5. Get an EIN

    The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
    file EIN for llc

Things to Consider While Starting an LLC in the State of Arkansas

This article has almost all the essential steps to start your LLC. However, there are some more steps that are required. Things like business plans that include all the details, such as business type, cost, estimated business income, business funds, and other things for business checking.

You must separate personal and business accounts when it comes to expenses. You might get a business credit card to ease your expenditure. Your business earnings must be separated from your other personal earnings. You can get a business accountant to handle your business tax accounts.

Your registered agent will be responsible for handling all your business notices and government documents. The registered agent needs to be present in their office during standard business hours. The next thing to consider is the business licenses. You might get a list of business licenses to obtain to run your LLC in the state of Arkansas. Based on the type of your business, you need to obtain a proper license.

If you plan to hire a professional service, some of these services will be available with their business kit. The type of service may vary depending on the business plan you’re choosing. Amendment filing service, annual report service, name reservation service, then handling vital documents and financial documents from time to time are all included in their services. With professional service, there will be no delays in processing times as well.

How Fast Can I Form an LLC in Arkansas

If filing via mail, Arkansas LLC takes about a week to process. Filing through mail may take upto 48 hours only. The whole process can be expedited by hiring professional online services.

Getting started with an LLC in Arkansas is easy if you know how to do it. Generally speaking, it takes about a week to process your filing. However, this can vary based on how you file. There are a few options, including mail-filing and online filing. Using an online service like Incfile, ZenBusiness, or LegalZoom could save you time. You could also get an expedited processing fee, which will speed up the process.

The first step is to pick a unique name for your business. You can do this by checking with the Secretary of State’s website. If you want to be sure that the name is available, you can file a name reservation application. If you want to hold the name, you will need to pay $25 in person or online.

The name you pick will make your business a lot easier to deal with. This is because you will have a name that you can use on your business cards, website, and other marketing materials. Also, choosing a unique name can help you attract new customers and keep them coming back.

Once you’ve chosen a name, you can start the process of registering your LLC. You can do this by mailing or emailing the certificate of organization, or you can use the online service. In addition to picking a name, you may need to pay for a yearly service fee. In addition, you may need to apply for a permit or license. Depending on the type of business you are starting, you may also need to pay additional taxes.

One of the most important documents you will need is the “Certificate of Organization.” This document, which you can get online or at a Secretary of State office, is necessary for making your LLC official. It contains information such as the company’s name, the LLC’s legal address, and the name and contact information of the registered agent. The information on this document will become part of the public record.

Another document you might want to have is the operating agreement. An operating agreement is a contract that describes the conduct and procedures of your business. It may also be called a “bylaw.” This document will help you legitimize your LLC to banks and courts. An operating agreement can prevent future conflicts.

While forming an LLC in Arkansas is relatively easy, you’ll need to deal with some of the more technical details. In addition to picking a name and registering your LLC, you may need to pay a tax or other fees. You may also need to hire professional licenses or permits. This is where an LLC formation service can come in handy. Using an online service like Incfile, LegalZoom, or ZenBusiness could save you time and money.

You may also want to consider getting an Employer Identification Number (EIN). The EIN is an official social security number for businesses. It will help you get a business bank account and hire employees. The EIN is also useful for filing taxes with the Internal Revenue Service.

F.A.Qs

Can I file an LLC in Arkansas by myself?

If you are a resident of Arkansas, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.

What is the cost of forming an LLC in the state of Arkansas in a year?

Apart from the formation fee of $50 (domestic LLC) and $270 (foreign LLC), LLC costs in Arkansas include $150 for Annual/Franchise Reports every year. LLCs are liable to pay sales tax of 6.5% every year.

How long does it take to get an LLC in the state of Arkansas?

It takes 48 hours to get an LLC in the state of Arkansas if you file it online. For the mail filing, it takes 7 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands, which has an impeccable turnaround time.

How to renew my LLC in the state of Arkansas?

Every year all the LLCs have to submit an Annual Report and pay $150 to the Arkansas Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.

What is the tax structure for an LLC in the state of Arkansas?

Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Arkansas Classification of LLC Tax.

In Conclusion

LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in the state of Arkansas at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.

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