Last Updated: September 10, 2024, 8:33 am by TRUiC Team


Arkansas LLC Cost

The minimum cost to establish an LLC in Arkansas is $50, which covers the processing fee for filing your Certificate of Organization.

However, the overall cost of forming an Arkansas LLC can vary depending on your business’s specific needs and preferences.

In this Arkansas LLC Cost guide, we’ll break down everything you need to know about the different expenses involved in starting and maintaining an LLC in Arkansas.

More than 84% of our readers form their LLC through a professional service to save time and avoid mistakes.

Northwest ($29 + State Fees)

How Much Does an Arkansas LLC Cost

Below is a summary of the key requirements and associated fees for forming an LLC in Arkansas.

LLC Cost Summary

Requirement Fee
Certificate of Organization $45-$50
Registered Agent $0-$150+
LLC Name $0-$50

Arkansas LLC Filing Fee ($50+)

To officially form your LLC in Arkansas, you will need to file a Certificate of Organization with the Arkansas Secretary of State, along with the necessary processing fee.

The fee is $50 if you file by mail or in-person, and $45 if you choose to file online.

For those registering a foreign LLC (i.e., those that are going to be operating outside of Arkansas), a Certificate of Registration will need to be filed, which carries a higher fee of $300 for mail or in-person filings and $270 for online submissions.

If you decide to use an LLC formation service, the overall cost will be slightly higher as it will include the state filing fee in addition to a small service fee. 

These services typically start just $29, though they can increase depending on the additional options you select.

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Have a look at our in-depth review of the best and most affordable LLC Formation Services in 2024

Arkansas Registered Agent ($0-$150+)

As part of forming your LLC in Arkansas, you will be required to designate a registered agent. This can either be an individual or a business entity that’s authorized to conduct business in the state, and will be responsible for receiving legal and government correspondence on behalf of your LLC. 

Your registered agent must have a physical street address in Arkansas and be available at that address during normal business hours — PO boxes or similar mail services cannot be used for this purpose.

While you have the option to act as your own registered agent at no cost, many business owners prefer to hire a professional registered agent service as it helps them avoid potential penalties due to non-compliance and keeps their personal information private.

The cost for a registered agent service typically ranges from $125 to over $300 per year, depending on the provider in question and the features requested.

Get a Free Registered Agent Service

Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge ($29 + State Fees).

Arkansas LLC Name ($0-$50)

While the process of naming your LLC doesn’t incur a direct cost, there are two potential expenses to be aware of.

We’ve discussed these in more detail below.

Reserving a Name

You can reserve your LLC’s name before filing the Certificate of Organization to ensure it’s not claimed by someone else.

To do this, you’ll need to submit this Application for Reservation of a Limited Liability Company Name form and pay a $25 fee — if you instead file online, the fee will be slightly reduced to $22.50.

Before attempting to reserve your name, it’s advisable to use the Arkansas Secretary of State’s Name Search tool to check that it’s actually available. 

You should also conduct a quick domain search and check that a URL that corresponds with your LLC’s name is not already taken, as you’ll need this for your business’s website.

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Doing Business As (DBA) Name

If you intend to operate under a name different than the one your LLC has legally adopted, you’ll need to file for a DBA name, also known as a Fictitious Name in Arkansas.

To do this, you’ll need to submit an Application for Fictitious Name to the Secretary of State, which costs $22.50 for online filings and $25 for mail/in-person filings.

Additionally, a copy of this application must be filed with the County Clerk’s office in the county your LLC will operate in. 

Keep in mind that unlike many other states, DBAs in Arkansas do not expire and thus do not need to be renewed. 

Optional Arkansas LLC Formation Costs

Beyond the standard formation costs outlined above, there are certain additional expenses that Arkansas LLCs might encounter depending on their specific circumstances.

See the sections below for more details on each of these costs.

Arkansas LLC Operating Agreement

While Arkansas does not mandate LLCs to have an operating agreement, it is highly recommended.

An operating agreement defines the roles, responsibilities, and ownership structure of the LLC’s members or managers, helping to prevent future disputes and guarantee the business’s smooth operation.

You can draft this document yourself at no cost or hire an attorney or online service to do it for you, which typically costs a few hundred dollars.

Since this document is an internal agreement, you won’t need to file it with the Secretary of State.

Local Business Licenses

Depending on your LLC’s location and business activities, you may need to obtain a local business license to operate legally. 

Most municipalities in Arkansas do not require a general business license, but specific licenses may be needed for certain activities.

For instance, businesses in Bentonville must register with the city, paying a one-time fee of $25 and an annual renewal fee of $12.50.

Certificate of Good Standing

A Certificate of Good Standing in Arkansas is often required when opening a business bank account or securing a loan.

Put simply, it’s essentially just a document that verifies that your LLC is properly registered and authorized to do business in the state.

To obtain this certificate, you can follow these steps:

The certificate costs $25 and is available for download for two weeks from the time of purchase.

Ongoing Costs to Maintain an Arkansas LLC

In addition to the initial formation costs, maintaining an LLC in Arkansas involves several recurring expenses that must be addressed annually.

Annual LLC Franchise Tax Report

Arkansas requires all LLCs to submit an Annual Franchise Tax Report by May 1 each year and pay a $150 fee. 

This report is meant to keep the state updated on the core information of your LLC, such as its official name and address, contact information, and registered agent’s details (among other things). 

Both domestic and foreign LLCs must file this report.

Registered Agent Maintenance

If you utilize a professional registered agent service, you’ll need to pay an annual fee for their services.

This fee typically ranges from $125 to $300, depending on the provider in question and the features you select. 

While not required, using a professional registered agent is recommended for new business owners as it is an affordable way of ensuring compliance and maintaining your personal information private.

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Have a look at our LLC Arkansas Guide (DIY Approach)

Let Northwest Registered Agent handle it for you ($29 + State Fees) 

Arkansas LLC vs Other States

When comparing Arkansas to other states in terms of LLC formation and maintenance costs, Arkansas is relatively cost-effective, with fees and ongoing expenses that are around the national average.

Regardless, you should note that it’s generally advisable to register your business in the state you will be operating from; this simplifies compliance with legal and tax obligations, as you’ll only need to adhere to one state’s regulations.

Arkansas LLC Cost FAQ

Yes, apart from the filing fee, there are a few other potential costs. One such cost is the registered agent fee. A registered agent is required by the Arkansas Secretary of State and typically costs around $100 per year. 

If you want to reserve a business name before filing your Certificate of Organization, there is a name reservation fee of $25. Additionally, though not mandatory, having an operating agreement for your LLC is advisable and can cost around $50.

The total cost of forming an LLC in Arkansas depends on the services you choose to use. However, the basic costs include the filing fee of $45 (online) or $50 (mail or in person) for the Certificate of Organization.

No, forming an LLC in Arkansas incurs some fees. The state requires a filing fee for the Certificate of Organization and an annual franchise tax, which are mandatory costs for LLC formation.

Yes, there are ongoing costs associated with maintaining an LLC in Arkansas. The annual franchise tax of at least $150 is one such cost. Additionally, there may be other expenses like the registered agent fee if you choose to have a registered agent for your LLC or any business licenses your business needs to operate.

A registered agent is a person or business designated to receive legal documents on behalf of your LLC. They play a crucial role in ensuring that you receive important notices and legal papers. 

While hiring a registered agent is not mandatory, it can be beneficial for LLC owners who may not have a physical presence in Arkansas or prefer to have a professional handle these responsibilities.

While not legally required, having an operating agreement for your LLC in Arkansas is highly recommended. An operating agreement outlines the rules and regulations of your LLC, clarifying how it will be managed and how decisions will be made. It can help avoid disputes and provide a clear framework for the operation of your business.

An LLC formation service can help streamline the process of forming an LLC in Arkansas. They can assist with preparing and filing the necessary paperwork, ensuring compliance with state regulations. Additionally, they may offer services such as acting as a registered agent and providing customizable operating agreement templates, saving you time and effort.

It's important to consult with a tax professional for specific advice, but in some cases, the costs associated with forming an LLC can be tax-deductible. Expenses related to starting and operating a business, including filing fees and professional services, may be eligible for deductions. 

Be sure to keep accurate records and consult with a tax professional to determine the deductibility of these costs in your particular situation.

Article Sources

Arkansas Taxpayer Access Point:
https://atap.arkansas.gov/_/

IRS - Employer ID Numbers:
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Arkansas Secretary of State:
https://www.sos.arkansas.gov/

SBA - Apply for Licenses and Permits:
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

Chamber of Commerce - Arkansas Chamber of Commerce List:
https://www.officialusa.com/stateguides/chambers/arkansas.html