Arkansas LLC Overview
Arkansas offers one of the lowest LLC filing fees in the United States at just $45. The Natural State processes online filings quickly, typically within 1-3 business days.
The state's economy is anchored by agriculture, retail (Walmart HQ in Bentonville), transportation, and a growing tech sector in Northwest Arkansas. The Bentonville-Fayetteville area has become a startup hub.
The main drawback is Arkansas's $150/year franchise tax, making ongoing costs higher than competing states. Wyoming ($60/year) or Arizona ($0/year) offer lower total costs for non-residents.
Arkansas LLC Costs and Fees
All fees below are sourced from the Arkansas Secretary of State fee schedule.
| Fee | Amount | When Due |
|---|---|---|
| Certificate of Organization (online) | $45 | One-time (at formation) |
| Annual Franchise Tax Report ($150/year) | $150/year | May 1 each year |
| Registered agent | $100-150/year (third party) | Ongoing |
| State income tax | 4.4% top marginal rate | On Arkansas-sourced income |
| Sales tax | 6.5% state + local | On taxable goods/services |
| Amendment | $50 | When needed |
| Certificate of Good Standing | $25 | When needed |
Cheapest filing, not cheapest overall
Arkansas has the lowest filing fee ($45) but the $150/year franchise tax means five-year costs exceed Arizona ($50 total) or New Mexico ($50 total).
Step-by-Step: How to Form a Arkansas LLC
Step 1: Choose your LLC name
Search for available names on the Arkansas Business Entity Search. Your name must include "Limited Liability Company," "LLC," or "L.L.C." Ensure the name is distinguishable from existing entities on file.
Step 2: Appoint a registered agent
Every Arkansas LLC must have a registered agent with a physical street address in Arkansas. The agent must be available during normal business hours to accept legal documents on behalf of the LLC.
Step 3: File Certificate of Organization
File online through the Arkansas Secretary of State. The filing requires:
- LLC name with designator
- Registered agent name and Arkansas address
- Principal office address
- Name and address of each organizer
- Mailing address
- $45 filing fee
Step 4: Create an Operating Agreement
While not always legally required in Arkansas, an Operating Agreement is essential for banking, tax compliance, and internal governance. It establishes member rights, profit distribution, and management structure. We include a custom Operating Agreement in every formation package.
Step 5: Obtain an EIN
Apply for an Employer Identification Number (EIN) from the IRS. This is your LLC's tax ID number, required for banking, hiring, and tax filings. Online application is available for those with an SSN; fax or mail application for international applicants without an SSN.
Step 6: Register for Arkansas taxes (if applicable)
If you will sell taxable goods or services in Arkansas, register with the Arkansas Department of Revenue for applicable tax accounts including sales tax and income tax withholding if you have employees.
Annual Compliance Requirements
- Annual franchise tax: Due May 1 each year. Minimum $150. Filed with Arkansas Secretary of State.
- Federal tax filing: Form 5472 with pro forma 1120 for foreign-owned LLCs.
- Arkansas income tax: Up to 4.4% on Arkansas-sourced income.
- Sales tax: Register if selling taxable goods/services.
- Registered agent: Maintain agent with Arkansas address.
- FinCEN BOI Report: Required under Corporate Transparency Act.
Arkansas Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| State income tax | Up to 4.4% | Graduated rates |
| Franchise tax | $150 minimum | Due annually by May 1 |
| Sales tax | 6.5% + local | Combined up to 11.625% |
| Annual report | Included | Filed with franchise tax |
Arkansas has moderate tax rates but the $150/year franchise tax applies regardless of revenue. This is the primary ongoing cost for non-residents.
Processing Times
| Processing Option | Time | Additional Fee |
|---|---|---|
| Online filing | 1-3 business days | $0 |
| Paper filing | 5-10 business days | $0 |
Arkansas offers fast online processing, typically 1-3 business days.
Pros and Cons of a Arkansas LLC
Advantages
- Lowest-tier filing fee ($45)
- Fast processing (1-3 days)
- Low cost of living
- Growing NW Arkansas tech hub
- Central US location
- No publication requirement
- Simple online filing
Disadvantages
- $150/year franchise tax
- Up to 4.4% income tax
- High combined sales tax
- Smaller business ecosystem
- Less well-known for LLC formation
- Limited privacy protections
Our Pricing: Arkansas LLC Formation
Domestic Filers (US Residents)
$249 service fee + $45 state filing fee
International Filers (Non-US Residents)
$349 service fee + $45 state filing fee
Every formation package includes:
- Certificate of Organization filing with Arkansas Secretary of State
- One year of registered agent service in Arkansas
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital document delivery within 24 hours of state approval
- Compliance calendar with all filing deadlines
- Dedicated support via email and WhatsApp
Form your Arkansas LLC today
$294 all-in for US residents. $394 for international. No hidden fees.
Start My Arkansas LLC →Over five years: $795 in state fees ($45 filing + 5 x $150 franchise tax). Despite cheapest filing fee, ongoing costs are higher than Wyoming ($510) or Arizona ($50).
Comparing states? Read our Wyoming vs Delaware comparison guide for the full breakdown of top formation states.