Arkansas LLC Cost
Arkansas charges a $45 state fee to form an LLC ($50 by mail). You'll also need to pay $150 every year to file a franchise tax report, and you may have to pay for additional services for your LLC—such as filing a DBA or hiring a professional registered agent. We'll give you a rundown of the costs of starting an LLC in Arkansas, starting with the most critical expenses.
What You’ll Find In This Article:
- Arkansas LLC Formation Filing Fee
- Arkansas Franchise Tax Report Fee
- Arkansas Registered Agent Fee
- Arkansas Sales and Use Tax Permit Fee
- Arkansas Professional Licensing Fees
- Local Business License Fees in Arkansas
- Optional LLC Fees in Arkansas
- Business Insurance Premiums
- Cost to register a foreign LLC in Arkansas
Arkansas LLC Formation Filing Fee: $45
Starting an Arkansas LLC requires a $45 fee to file the Arkansas Certificate of Organization with the Secretary of State. Filing this certificate legally creates your LLC. You can file online, or with a paper copy by mail or in person for an additional $5.
However, if you want to form an Arkansas Series LLC (a type of LLC with a primary LLC and one or more “Protected Series” LLCs associated below it), you must file in person. The primary LLC’s Certificate of Organization fee is $50, and at least one Protected Series Designation must be filed at alongside it for an additional $50 per designation.
Arkansas doesn’t provide an expedited filing option, but business documents are usually processed within two days of receipt.
Arkansas Franchise Tax Report Fee: $150
All LLCs in Arkansas need to file an annual franchise tax report, which costs $150. The due date is May 1st every year. If you file your tax report late, you’ll be charged an additional $25 late fee plus 10% interest for every year you are delinquent.
If you own a series LLCs, you’ll need to file individual reports for your primary LLC and each Protected Series LLC under it.
While you don’t have to pay the annual franchise tax fee immediately, it is an expense you’ll want to be prepared for.
Find out how to file your Arkansas Annual Report.
Arkansas Registered Agent Fee
When you file your Certificate of Organization, you’re required to appoint an Arkansas registered agent. Your registered agent is the person (or company) who you choose to accept legal notices on behalf of your business.
While you can be your own registered agent or appoint a friend, business partner or employee, hiring a professional registered agent service helps you maintain your privacy and ensures that you won’t miss a legal summons when you’re out of the office. The fees for registered agent services vary. Northwest’s fee for registered agent service is $125 per year, and our price never goes up.
Arkansas Sales and Use Tax Permit Fee: $50
Arkansas doesn’t have a statewide business license, but most businesses do need a state-issued Sales and Use Tax permit to charge sales tax on goods and services. Unregistered sellers may be billed for unpaid use tax, plus penalties and interest.
You can register for the permit with the Arkansas Department of Finance and Administration for $50. The permit does not need to be renewed unless your LLC has stopped doing business in Arkansas.
Arkansas Professional Licensing Fees
Many professions that require specialized training—such as nurses, architects, and pawnbrokers, among others—need a professional license from the Arkansas board regulating that industry.
The fees for professional licenses vary by industry, and many professions require applicants to pass an exam to get licensed. For example, the application fee for a Certified Public Accountant’s License is $120, but you’ll also have to take four exam sections, and each section costs either $172.51 or 192.03. On the other hand, the application for a Barber’s License costs $50, plus $75 for an exam.
You can check out the Arkansas Department of Labor and Licensing page for more information about your profession.
Local Business License Fees in Arkansas
Some counties and cities in Arkansas require a local business license. Fees vary by municipality or jurisdiction, and may differ based on the type of business. For example, Fayetteville charges between $15 and $52 for a business license, depending on the time of year and whether the LLC is home-based or not. Meanwhile, the average Fort Smith business license costs about about $100 annually.
Optional LLC Fees in Arkansas
We’ve covered the basic, most essential expenses of starting an LLC in Arkansas, but here are some other expenses that might be necessary for your business.
Reserving a business name for your LLC costs $22.50 in Arkansas. If you’re worried about someone else claiming your LLC name before you file your Certificate of Organization, or you just want to make certain your business name is available, file a Application for Reservation of Entity Name with the Secretary of State. Filing can be done through the Arkansas Corporations Online Filing System, or with a paper form by mail or in-person for an additional $2.50 fee.
Reserving the name gives you exclusive rights to that name for 120 days. If you aren’t ready to form your LLC within that time period, you can extend the reservation for another 120 days by submitting a free request for renewal.
Registering a fictitious name for your LLC costs $22.50 in Arkansas. If you want to do business under a name other than your LLC’s legal name, you’ll need a fictitious name (also called a DBA). To get a fictitious name in Arkansas, you first need to fill out an Application for Fictitious Name with the Secretary of State. Filing can be done through Arkansas Corporations Online Filing System, or by mail or in-person with a paper form for an additional $2.50 fee.
Fictitious name registrations do not expire in Arkansas.
Certified Copies of Business Documents
As your business expands, at some point you might need to order a certified copy of your business documents from the Secretary of State. Certified copies in Arkansas cost $25 per document.
For example, if you register to do business in a new state, that state’s government may require a certified copy of your Certificate of Organization. Some LLC owners choose to keep certified copies of business documents on record internally, just in case.
Find out how to get a certified copy of your Arkansas Certificate of Organization.
Arkansas Certificate of Good Standing
Requesting a Certificate of Good Standing in Arkansas costs $25. If you ever need to prove to a bank, investor, or foreign jurisdiction that your LLC is up-to-date on its taxes and state reports, you’ll need a Certificate of Good Standing (also called a Certificate of Compliance or Certificate of Existence).
You can request a Certificate of Good Standing from the Arkansas Secretary of State online.
Here’s more on how to get an Arkansas Certificate of Good Standing.
Business Insurance Premiums
If your business owns expensive property or is at risk of being sued, you’re probably going to want to invest in some kind of business insurance, which can cost anywhere from $50 a month to several thousand dollars a month, depending on the size and needs of your business.
If your business has three or more employees or a payroll greater than $20,000, you’re legally required to purchase workers’ compensation insurance. You’ll have to purchase workers’ compensation insurance from a commercial carrier—or through a self-insurance program if your company qualifies. The price for this insurance varies, so it’s a good idea to shop around for a competitive rate. Rates can also vary widely based on your industry.
For example, an average workers’ comp rate for a roofing company is around $18 per $100 of covered payroll, whereas the average rate for a brewery is only around $1.50 per $100 of payroll.
Learn more about LLC Business Insurance.
How much does it cost to register a foreign LLC in Arkansas?
Registering a foreign LLC in Arkansas costs $270 ($300 by mail or in person). If your LLC was formed in another jurisdiction but you want to do business in Arkansas, you’ll need to register as an Arkansas foreign LLC. To do business as a foreign LLC, you’ll need to apply for an Arkansas Certificate of Registration.
You will also need an Arkansas Sales and Use Tax Permit, and you may need one or more professional or local licenses as well.