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.
There are several different expenses associated with running an LLC in Arkansas, from payroll taxes to self-employment taxes. Additionally, the state of Arkansas requires a business to pay sales and franchise taxes. These fees can range from $100 to hundreds of dollars each year. To get the most out of these expenses, it is important to develop a solid business plan. A good business plan will include information on the name of the LLC, its purpose, a thorough market analysis, its organizational structure, and a clear plan for finance and logistics. Finally, an LLC in Arkansas must acquire a federal employer identification number (EIN). This is a number that identifies the company to federal tax authorities.
While the state of Arkansas does not require a general business license, certain industries may require specific industry licenses or permits. This paperwork may also require a fee. Regardless of whether you choose to obtain these permits or not, you must ensure that the business is in good standing with the state.
Having a registered agent is a vital part of operating in Arkansas. The registered agent serves as the company’s main point of contact with the state and receives important documents. In addition, the registered agent must be at least 18 years old and be available during regular business hours. Additionally, an LLC must file a Create LL-01 – Certificate of Organization with the Arkansas Secretary of State. This filing costs approximately $50. Having an operating agreement is also strongly recommended in Arkansas.
Another important expense of starting a business in Arkansas is insurance. Workers’ compensation insurance protects your employees from injuries and illnesses caused on the job. Most employers with three or more employees are required to have workers’ compensation coverage. Another cost is general liability insurance, which covers your business from financial loss if someone sues you or your business. While general liability insurance is not mandatory in Arkansas, it is often required as part of a commercial lease.
Another expense associated with starting a business is advertising. You may want to hire an advertising agency. You may also want to take advantage of social media to promote your business. Remember, your Arkansas LLC must have an active presence on these sites. There are many resources available to help you raise startup funding. You may also want to conduct market research to better understand your target audience.
Other expenses include licenses, permits, and taxes. Some states have mandatory licensing fees for LLCs. These fees can range from $20 to several hundred dollars. These fees may vary depending on your industry and location. Additionally, if your LLC generates a large amount of revenue, it will have to pay state, local, and employment taxes.
A registered agent service is another expense that may increase the cost of operating an LLC. These services will act as a point of contact for the state and forward important documents to your LLC. Some formation services will include this service for free. Other services will charge you an extra fee to register as a registered agent.
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.