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.
If you’re wondering how much it costs to maintain an LLC in Arkansas, read this article to find out. You can form your Arkansas LLC yourself, but if you’re not confident about your own business acumen, you can use the services of an Arkansas LLC formation service. Keep in mind that the fees vary between different companies, and while some charge one-time fees, others will tack on “free services” that will actually cost you next year. Before you hire a service, read the fine print. Don’t let hidden fees get you into trouble!
One thing you need to know about taxes is that every business in Arkansas is subject to franchise tax, which costs about $150 per year. Additionally, an LLC that is taxed as an individual will pay between 1% and 6.5% in income taxes, while an LLC that is taxed as a corporation will pay a flat rate of 6.5%. Finally, all businesses in Arkansas are subject to a franchise tax, which is assessed on taxable income and is due on May 1 of every year.
In Arkansas, an LLC is a type of company that can choose to operate as a limited liability company. This type of company has several benefits, including protecting your personal assets. It prevents you from owing money to creditors or in a lawsuit. Furthermore, LLCs are tax-efficient, as they prevent double taxation. Whereas a corporation pays entity-level taxes, an LLC pays only dividend taxes to its shareholders.
Aside from filing franchise taxes, you need to pay recurring fees to maintain the business in good standing. These fees will also include the cost of a registered agent. If you choose to form your LLC in Arkansas, you will also need to get a registered agent, which adds to your costs. Three of the best LLC services offer registered agents as part of their services. Finally, you need to obtain business licenses, depending on what your business will be doing and where it will be located. You will need these licenses as well as a certificate of good standing from your home state.
You can file your Articles of Organization with the state of Arkansas for $50. The documents will state your business name, members, and the rules of LLC interaction. You can also file your articles with the state through the mail or in person. If you’re not familiar with filing articles of organization in Arkansas, you can look into online services to get this document prepared. Attorneys will also cost you extra, but they are not required.
While there are several fees associated with maintaining an LLC, many of these fees are worth it. You can use the services of an Arkansas registered agent to receive all incoming mail and notify you of important documents. To change the registered agent in Arkansas, you must notify the Secretary of State of any changes. If you use a registered agent service, you can register a trade name for free. It costs around $100 a year.
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.