Arkansas LLC Requirements

Updated for 2026 · Official Secretary of State Website

Arkansas has one of the lowest LLC filing fees in the country at just $45 online, making initial formation very affordable. However, the $150 annual franchise tax report adds to ongoing costs. The state's central location, low cost of living, and growing tech sector in the Northwest Arkansas corridor have attracted increasing numbers of small businesses.

Filing Fee

$45

One-time state fee

Annual Fee

$150

Per year

Processing

1-3 business days

Online filing

Deadline

May 1

Annual report due

Note: $45 online, $50 by mail.

Average Cost

While Arkansas has one of the lowest filing fees at $45, the $150 annual franchise tax report brings ongoing costs above the national average for annual maintenance.

Notable Facts About Arkansas LLCs

Arkansas has the third-lowest LLC filing fee in the nation at $45
The annual franchise tax report has a $150 minimum regardless of revenue
Arkansas was an early adopter of online business filing through its Secretary of State portal
The state requires LLCs to file a franchise tax report even if no tax is due

Tax Information for Arkansas LLCs

Arkansas imposes a franchise tax on LLCs with a $150 minimum. The state income tax ranges from 2% to 4.4% for individuals. LLCs taxed as pass-through entities pay tax at individual rates. There is no separate LLC privilege tax beyond the franchise tax.

Formation Steps

1

Choose a Name for Your LLC
Select a unique business name that complies with Arkansas naming requirements. The name must include "LLC" or "Limited Liability Company" and cannot be the same as an existing registered business in Arkansas.
2

Appoint a Registered Agent
Designate a registered agent with a physical address in Arkansas who can receive legal documents and official correspondence on behalf of your LLC.
3

File Articles of Organization
Submit your Articles of Organization (also called a Certificate of Formation in some states) to the Arkansas Secretary of State. This is the official document that creates your LLC.
4

Create an Operating Agreement
Draft an operating agreement that outlines ownership percentages, member roles, profit distribution, and management structure of your LLC. While not always legally required, it is strongly recommended.
5

Get an EIN from the IRS
Apply for a free Employer Identification Number (EIN) from the IRS. You'll need this for opening a business bank account, hiring employees, and filing taxes.
6

Open a Business Bank Account
Open a dedicated business bank account to keep your personal and business finances separate. This helps maintain your LLC's liability protection.
7

File Annual Reports
Arkansas requires periodic reports due by May 1. The filing fee is $150. Mark your calendar to avoid late fees or administrative dissolution.

Visit Official SOS Website

Annual Report Details

Fee: $150

Deadline: May 1

Annual Franchise Tax Report due by May 1 each year.

Called 'Annual Franchise Tax Report'. $150 minimum if timely filed. Additional $5 credit card processing fee online.

Need a Registered Agent in Arkansas?

Every Arkansas LLC must have a registered agent with a physical address in the state. A registered agent service ensures you never miss important legal documents or compliance deadlines.

Compare Registered Agent Services

Frequently Asked Questions

How much does it cost to form an LLC in Arkansas?

The state filing fee to form an LLC in Arkansas is $45 for the Certificate of Organization. $45 online, $50 by mail. This cost is near the national average compared to other states. Additional costs may include a registered agent service ($50-$300/year) and an operating agreement if you hire an attorney.

What is the annual cost of an LLC in Arkansas?

Arkansas charges $150 for its periodic reporting requirement, due May 1. Called 'Annual Franchise Tax Report'. $150 minimum if timely filed. Additional $5 credit card processing fee online. While Arkansas has one of the lowest filing fees at $45, the $150 annual franchise tax report brings ongoing costs above the national average for annual maintenance.

How long does it take to form an LLC in Arkansas?

Online filing in Arkansas typically takes 1-3 business days. You'll need to file Certificate of Organization with the state. Processing times may vary based on filing volume and the time of year.

Do I need a registered agent in Arkansas?

Yes, Arkansas requires every LLC to have a registered agent with a physical street address in the state. The registered agent receives legal documents, tax notices, and official government correspondence on behalf of your LLC.

What taxes does a Arkansas LLC pay?

Does Arkansas require an operating agreement for LLCs?

While not all states legally require an operating agreement, it is strongly recommended for every LLC in Arkansas. An operating agreement defines ownership structure, member roles, and how the business will be managed. Without one, your LLC will be governed by Arkansas's default LLC laws.