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

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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 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.

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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:

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

How Much Does It Cost to Maintain an LLC in Arkansas

In order to avoid incurring costly fines, you’ll need to keep your accounting records up-to-date. You’ll also need to keep detailed records of all financial transactions. The most important document for LLC maintenance is the franchise tax report. If you fail to submit your franchise tax report, the state will dissolve your business. Fortunately, most of these fees are a one-time expense and won’t affect your business’s costs in Arkansas.

An LLC requires a business license to operate. There is no general business license in Arkansas, so a local business license will be required. You’ll also need to file federal and state tax returns. Most states require you to submit an annual report to remain in good standing, so you’ll want to make sure you meet that deadline. In Arkansas, you must file an annual report with the Department of Revenue to keep your business registered. The cost of an annual report varies, but you’ll need at least $300 to start a business. It’s important to know that the annual report fees don’t include penalties.

In addition to paying a one-time fee for forming an LLC, you’ll need to pay ongoing fees to maintain it. These fees are not prohibitive, and they don’t increase your overhead. While forming an LLC can be cheap and simple, it is still an important investment in your company. And while you’ll be protected by an LLC’s tax flexibility, you’ll be responsible for ongoing filings and obligations.

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.

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