How Much Does an LLC Cost in Arkansas (Filing Fees)
Forming an LLC in Arkansas costs $45 if you file online, or $50 by mail. That's the Certificate of Organization fee paid to the Arkansas Secretary of State.
After that, Arkansas LLCs owe a flat $150 franchise tax each year. It stays the same no matter its size. It's due on or before May 1. Here's every cost you'll run into, from formation through the years after, plus what's optional along the way.
Quick Summary
- File online whenever you can. It's the faster, cheaper path for most Arkansas LLC paperwork, from formation to name reservation.
- Put May 1 on your calendar well before tax season gets busy. That way, the franchise tax report never sneaks up on you.
- Watch for formation services that upsell an EIN filing. You can request one directly from the IRS yourself.
| Cost Item | Amount | Frequency | Required? |
|---|---|---|---|
| Certificate of Organization | $45 online / $50 paper | One-time | Mandatory |
| Name reservation | $22.50 online / $25 paper | One-time (120 days) | Optional |
| Doing Business As (DBA) | $22.50 online / $25 paper | One-time | Optional |
| Annual Franchise Tax | $150 (flat, all LLCs) | Every year, due May 1 | Mandatory |
| Registered agent service | $0 (self) or $80–$300 | Every year | Optional |
| Local business license | Varies by city (roughly $10–$100/year) | Every year | If applicable |
| Operating agreement | $0 (template) to $1,000+ (attorney) | One-time | Optional |
| Certified document copies | $0.50 per page plus $5 certification | As needed | Optional |
| Certificate of Existence | $15 | As needed | Optional |
| Foreign LLC registration (Form FL-01) | $270 online / $300 mail | One-time | If applicable |
| EIN from the IRS | $0 (free at IRS.gov) | One-time | Recommended |
One-Time Formation Costs in Arkansas
These are the fees you pay once, when the LLC comes into existence. Founders often handle a couple of optional filings at the same time. It's a similar lineup to LLC costs in every other state, just with Arkansas's own numbers attached.
1. Certificate of Organization ($45 Online / $50 Paper - Mandatory)
Filing your Certificate of Organization with the Arkansas Secretary of State costs $45 online or $50 by mail or in person [1]. Arkansas doesn't offer rush processing. So the $5 you save by filing online is the only real discount on the table.
Online filings often process in 3 to 7 business days. That's well ahead of the 4 to 5 weeks mail filings take once you factor in transit time. The paperwork itself is covered step by step in how to start an LLC in Arkansas.
2. Name Reservation ($22.50 Online / $25 Paper - Optional)
Reserving a business name before you're ready to file costs $22.50 online or $25 by mail. The reservation holds your name for 120 days.
You don't need to reserve a name to form an LLC. Skip this step entirely if you're ready to file your Certificate of Organization right away.
3. Doing Business As (DBA) ($22.50 Online / $25 Paper - Optional)
A DBA in Arkansas runs $25 by mail, or $22.50 if you file online. It goes through the Secretary of State rather than the county.
Also called a fictitious or assumed name. It lets your LLC operate under a different customer-facing brand than the one on its Certificate of Organization.
Ongoing Costs to Maintain Active Status
Once your LLC is formed, a handful of recurring costs keep it in good standing. One of them applies no matter what.
1. Annual Franchise Tax ($150 - Mandatory)
The $150 franchise tax report is due on or before May 1 every year. The amount stays the same no matter your income or how many members the LLC has [2].
Miss the deadline and a $25 penalty gets added to the tax, plus interest that accrues daily. Arkansas eliminated franchise tax extensions decades ago, so May 1 is a hard date every year.
2. Registered Agent Service ($80-$300 Annually - Optional)
Acting as your own registered agent costs $0, and designating a qualified LLC member works just as well. Arkansas requires each LLC to have one. That's someone who accepts legal documents and official state correspondence on the business's behalf.
Hiring a paid registered agent service in Arkansas instead often runs $80 to $300 a year. The trade-off is privacy and one less compliance deadline to track yourself.
3. Local Business Licenses (Varies - If Applicable)
Many Arkansas cities and counties layer a local business license on top of the state filing. The cost depends on where you operate. Check with your city or county clerk before assuming you don't need one.
Fayetteville charges $98 for a new non-home-based license and $31 for a home-based one. Either way, that includes a $10 annual renewal. Fort Smith runs closer to $100 a year, though the first year is often free for new businesses.
4. State Income Tax (Depending on Election - Mandatory)
By default, an Arkansas LLC is a pass-through entity. Members report their share of income on personal returns, taxed at Arkansas's graduated individual rates, topping out at 3.9%.
Electing corporate tax treatment instead means the LLC files its own return under Arkansas's graduated corporate rates. These top out at 4.3% on income above $11,000 [3].
Optional Costs Worth Knowing About
A few more costs come up only in specific situations, closing with the one that should never cost you anything.
1. Operating Agreement (Optional, but Recommended)
Arkansas doesn't legally require an operating agreement. But skipping one leaves ownership shares, management structure and exit terms unsettled if a dispute ever comes up. It's the document that spells out how the LLC actually runs day to day.
Drafting one yourself costs nothing using a free template, or a formation service will draft one for roughly $50 to $200. A custom attorney-drafted agreement runs $300 to $1,000 or more. It's worth it once the LLC has multiple owners.
2. Certified Document Copies ($0.50 Per Page Plus $5 Certification - Optional)
Arkansas charges $0.50 per page for copying a filed document, plus a flat $5 for the certification itself. A certified copy is an official duplicate of your formation documents. It's useful for opening a business bank account or registering in another state.
3. Certificate of Existence ($15 - Optional, but Recommended)
A Certificate of Existence costs $15 and can be ordered directly from the Secretary of State. Sometimes called a Certificate of Good Standing, it confirms your LLC is current on its filings.
Lenders, investors and other states' filing offices often ask for one before they'll do business with you. That's especially true if you're expanding across state lines.
4. Foreign LLC Registration ($270 Online / $300 Mail - If Applicable)
If your LLC formed in another state but you want to operate in Arkansas, you'll register as a foreign LLC. Use the Application for Certificate of Registration, Form FL-01. Online filing costs $270, and mail or in-person filing costs $300.
You'll also need a Certificate of Good Standing from your home state, dated within 30 days of filing. Once registered, a foreign LLC owes the same annual franchise tax as any domestic one.
5. EIN from the IRS ($0 - Free)
Your Employer Identification Number comes from the IRS, not the state, and it's free [4]. Most banks want one before they open a business account, and the IRS uses it to track the LLC's filings. Applying online takes about 5 to 10 minutes if you have your formation details on hand.
Some formation services charge extra to file this step for you. Handle it yourself and it costs nothing but a few minutes of your time.
FAQs
Is Changing Your Arkansas LLC's Registered Agent Free?
Yes, changing your Arkansas LLC's registered agent is free. The Secretary of State charges no fee for the Notice of Change of Registered Agent form, whether you file it online or by mail.
Is Arkansas's Franchise Tax the Same as Its Income Tax?
No, Arkansas's franchise tax and income tax are different charges. The franchise tax is a flat fee for the right to operate as an LLC, separate from whatever tax you owe on actual profit.
References:
- https://www.sos.arkansas.gov/uploads/LLC_Fees1.pdf
- https://www.sos.arkansas.gov/business-commercial-services-bcs/franchise-tax-report-forms/
- https://www.dfa.arkansas.gov/office/taxes/income-tax-administration/corporation-income-tax/corporate-faqs/
- https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
