Fact Checked by Editorial Staff
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.
However, it is important to understand that forming an LLC is not the end of the process. Once your LLC is up and running, you will need to comply with various ongoing requirements to maintain its good standing with the state and protect the limited liability it provides.
One question that many new LLC owners have is: How much does it cost to maintain an LLC in Arkansas? The answer to this question depends on several factors, including the specific requirements of the state and the services you choose to use to help you manage your LLC.
In Arkansas, there are several annual obligations that LLC owners must fulfill to maintain their LLC in good standing. These include filing an annual report, paying an annual franchise tax, and renewing their registered agent services. The specific costs associated with these requirements can vary, but it is important to budget for these expenses to ensure that your LLC remains compliant with state regulations.
In addition to the annual requirements, there may be additional costs associated with maintaining an LLC in Arkansas. For example, if you choose to use the services of a registered agent to help you manage your LLC, there will be fees associated with this service. Similarly, if you decide to hire an accountant or attorney to assist you with ongoing compliance issues, you will need to budget for their fees as well.
It is also important to remember that the costs of maintaining an LLC in Arkansas are not static. Over time, regulations may change, and your business may grow or evolve in ways that require additional compliance measures. Therefore, it is important to stay informed about the requirements for maintaining an LLC in Arkansas and budget accordingly.
While there are costs associated with maintaining an LLC in Arkansas, the benefits of this business entity structure often outweigh the expenses. By forming an LLC, you are able to protect your personal assets from business liabilities and enjoy the flexibility and tax benefits that come with this type of entity.
Ultimately, the cost of maintaining an LLC in Arkansas will vary depending on your specific circumstances and needs. By taking the time to understand the requirements and budgeting accordingly, you can ensure that your LLC remains in good standing and continues to provide you with the liability protection and other benefits that attracted you to this business structure in the first place.
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.