How Much Does It Cost to Form and Maintain an LLC in Arkansas?

Starting an Arkansas LLC costs $45 online or $50 by mail to file the Certificate of Organization. After that, the only statewide recurring fee is a $150 Annual Franchise Tax due every May 1. Optional add-ons: like a name reservation ($22.50 online / $25 mail) and a DBA ($22.50 online / $25 mail, often with county recording), depend on your branding needs. Your IRS EIN is free, and Arkansas has no newspaper publication requirement.

Arkansas LLC Cost Summary (Start-up & Ongoing Fees)

In Arkansas, your LLC budget starts with a one-time state filing fee: $45 online or $50 by mail, paid when you file the Articles of Organization. After formation, plan for a flat $150 annual franchise tax. Optional items include a registered agent service, a $25 name reservation, and a DBA/fictitious name ($22.50 online or $25 mail) if you’ll operate under a different brand. If you’re qualifying an out-of-state company to do business in Arkansas, add the foreign registration fee and a recent home-state Certificate of Good Standing.

At-a-glance table:

Arkansas State Filing Fees (Formation)

Your core cost is the Articles of Organization filing fee (online vs. mail can differ; expedited adds more). Foreign LLCs use a different filing and typically need a recent Certificate of Good Standing. Below, we separate mandatory items from optional extras so you can scan the numbers and skip what you don’t need.

Cost snapshot:

Articles of Organization

To create your LLC, file the Certificate/Articles of Organization. Online filing is $45 and is the cheapest/fastest route; mail is $50. Expect the online system to move faster than paper, and you’ll get confirmations electronically.

Prefer to use a formation company? Compare the best LLC services in Arkansas.

Name reservation (optional)

If you want to hold a name before you file, reserve it for up to 120 days. Arkansas charges $22.50 online or $25 by mail for LLC name reservations. Handy if you need time to prep documents or branding, and you can check Arkansas LLC name availability first to avoid conflicts.

Fictitious name/DBA (optional)

If you’ll operate under a brand name different from your LLC’s legal name, file a Fictitious Name. For LLCs, the state fee is $22.50 online or $25 by mail, and Arkansas also directs domestic entities to record with the county clerk where the registered office is located (Pulaski County is an exception).

Certificate of Good Standing & certified copies (optional)

Banks, lenders, or other states often ask for proof you’re in good standing or for certified copies of filings. Arkansas SOS charges $0.50 per page plus $5 for the certification. (Vendors may tack on their own service fees, those are separate from state charges.)

Operating Agreement (recommended, non-filing)

Arkansas doesn’t make you file an operating agreement, but having one is strongly recommended (it defines ownership, voting, profit splits, and exit rules). Cost is DIY/free with a reputable template or attorney-drafted if you want custom provisions (especially if there are multiple members or special allocations). If you want a formation checklist that covers filings and first tasks, use our step-by-step Arkansas LLC setup guide.

EIN with the IRS (free)

Get your EIN straight from the IRS for $0. The online application issues the number immediately after approval. Ignore third-party sites that charge, major outlets have reported persistent ad scams impersonating government services. Always use irs.gov.

Ongoing Arkansas LLC Costs (Yearly)

Once your LLC is up and running, ongoing costs in Arkansas are refreshingly simple. The only state-mandated recurring fee is the Annual Franchise Tax. Other ongoing costs (like registered agent renewal, local licenses, or optional tax elections) depend on your business setup.

Cost snapshot (ongoing & yearly fees)

Annual Report / Franchise Tax Obligations

Arkansas combines the “annual report” with the Annual Franchise Tax for LLCs. The amount is $150, and it’s due May 1 each year. You can file and pay online; missing the deadline triggers penalties, interest, and potentially revocation. New to the concept? Here’s an overview of LLC annual report basics.

Good to know (filing): Use the Secretary of State’s franchise-tax portal to submit your report and payment.

Registered Agent Renewal

You must continuously maintain a registered agent with a physical street address in Arkansas (no P.O. boxes) who’s available during business hours. Many owners hire a commercial agent; market pricing commonly falls around $100–$125/year (see our Arkansas registered agent comparisons for picks and pricing). If you serve as your own agent, there’s no state renewal fee, just be sure your address and availability meet the statute.

Licenses and Permits You May Need

These aren’t paid to the Secretary of State, but they’re part of a normal Arkansas operating budget:

• Sales tax permit (retailers/services subject to tax): Register with DFA; the permit fee is $50 and you’ll file returns monthly/quarterly/annually depending on volume (through ATAP).
• City/county business license (“privilege license”): Many municipalities require one. For example, Little Rock requires a business or privilege license; restaurants/lodging also collect specific local taxes. Amounts vary by locality.

Tax Treatment Options (Default, S-Corp, C-Corp)

By default, a single-member LLC is a disregarded entity for federal income tax; a multi-member LLC defaults to partnership taxation. You may elect corporate taxation (C-Corp) or S-Corp status if eligible.

• Stay default (pass-through): Simple compliance; profits pass through to owners’ individual returns.
• Elect S-Corp: File Form 2553 with the IRS; potential FICA/self-employment savings when you pay a reasonable salary and take the rest as distributions (talk to a CPA).
• Elect C-Corp: File Form 8832 to be taxed as a corporation. Arkansas’s top corporate income tax rate is 4.3% (retroactive to Jan 1, 2024), per state law changes (useful for reinvestment planning but adds corporate-level filing).

For practical pros/cons and examples, see the tax benefits of an LLC.

Foreign LLCs: Registering an Out-of-State LLC in Arkansas

If your company is already formed in another state and you want to operate in Arkansas, you must register as a Foreign Limited Liability Company (Foreign LLC) with the Secretary of State before doing business. The filing is called an Application for Certificate of Registration.

Cost snapshot (foreign LLC registration)

Registration Fee and Required Documents

To register your out-of-state LLC, file the Application for Certificate of Registration (FL-01) with the Arkansas Secretary of State.

• Online fee: $270 (via the SOS online system).
• Mail fee: $300 (shown on FL-01).

Attach a Certificate of Good Standing/Existence issued within 30 days from your home state to prove your LLC is active and compliant. After approval, Arkansas issues a stamped Certificate of Registration confirming your authority to do business.

Arkansas Registered Agent Requirement

Every foreign LLC must appoint and maintain a registered agent with a physical Arkansas street address (no P.O. boxes). The agent may be an Arkansas resident or a commercial registered agent authorized in the state. Failing to maintain an agent can lead to administrative revocation. Typical commercial RA pricing is around $100–$125 per year.

Ongoing Annual Obligations

Foreign LLCs follow the same ongoing rules as domestic LLCs in Arkansas:

• Annual Franchise Tax: $150 due May 1 each year (file online or by mail).
• Registered Agent Maintenance: Keep your agent and Arkansas address current; file a statement of change promptly if anything changes.
• Home-State Compliance: Maintain good standing in your formation state; Arkansas can revoke authority if your home-state status lapses.

Calculate Your Arkansas LLC Costs (Using the Calculator)

Use this calculator to model your real-world LLC costs without guesswork. Pick Online or Mail for the Certificate of Organization (fixed at $45 or $50), toggle Name Reservation if you need it ($25), choose DBA/Fictitious Name ($22.50 online or $25 mail) if you’ll operate under a trade name, and add any service/attorney fee you plan to pay. For yearly costs, the Annual Franchise Tax is locked at $150; add a registered agent fee (if you hire one) and any local license amounts for your city/county. The totals update instantly, so you can simulate DIY, formation-service, or attorney-assisted scenarios with one tool, no separate examples needed.

Penalties, Late Fees & Reinstatement

Arkansas keeps compliance simple but strict: your annual obligation is the franchise tax/report. If you miss it or let your registered agent lapse, the Secretary of State (SOS) can move toward revocation/administrative dissolution. Here’s what that looks like and how to fix it.

Missed Annual Obligations (administrative dissolution risk)

The Arkansas LLC Annual Franchise Tax is $150, due May 1 each year; you file it through the SOS franchise-tax system (online or by mail). Late filings accrue penalties/interest, and continued nonpayment can lead to revocation/administrative dissolution.

*Card/e-check fees: Online payments add a small portal fee (about $5 card / $3 e-check) shown at checkout.

No Registered Agent on Record (service of process issues)

Your LLC must maintain a registered agent with a physical Arkansas street address (no P.O. boxes) and be available during business hours. Failure to maintain one can trigger default in service of process and loss of good standing.

Reinstatement Steps and Fees

If your LLC is administratively dissolved, you can usually come back into compliance:

1. Cure the cause – file the missing franchise-tax reports and pay all taxes, interest, and penalties that accrued.
2. Apply for reinstatement – submit a reinstatement application to the SOS with required company details (name, principal office, registered agent, and the dissolution date) and a statement that the grounds did not exist or have been cured. Arkansas law allows reinstatement within two years of dissolution.
3. Effect of approval – the SOS cancels the dissolution and your LLC returns to active status. (Note: Arkansas statute ties reinstatement to paying all amounts due; any additional SOS filing fees are assessed per the agency’s schedule at the time you file.)

Local & Industry-Specific Costs in Arkansas

State fees aren’t the whole picture. Depending on what and where you operate, budget for city/county licenses and tax accounts. If you plan to hire staff and want help with payroll, benefits, and compliance, consider Arkansas PEO services.

City/County Business Licenses

Many municipalities require a business/privilege license to operate locally. For example, Little Rock requires a license for any business within city limits; food/lodging businesses also collect dedicated local taxes. Amounts and renewal cycles vary by locality. If you’re a landlord or investor, our guide to LLC for rental properties covers structure, liability, and practical setup notes.

Sales Tax Permit

Retailers and many service businesses must register for Arkansas sales tax with the Department of Finance & Administration (DFA) via ATAP. DFA lists a $50 permit fee at registration; thereafter you’ll file returns and remit tax monthly, quarterly, or annually based on volume. (If future legislation changes the fee, DFA’s page will reflect it.)

Professional/Regulated-Industry Licenses

Certain professions (e.g., contractors, health care, cosmetology, accounting) need state-level professional licenses before operating. Use Arkansas’s Labor & Licensing resources to locate the correct board/agency for your profession and confirm costs/renewals.

FAQs: Arkansas LLC Costs

Here’s everything readers ask about Arkansas LLC costs. Use this section to quickly confirm what you’ll pay to get started (state filing fee), what you’ll owe each year ($150 franchise tax), and when optional items like a name reservation or DBA make sense. We also hit timing, dissolution costs, and foreign-LLC pricing so your budget stays accurate from day one. Skim the answers or jump to the calculator when you’re ready to model real scenarios.