Is it cheaper to form an LLC in Arkansas or Kansas?

Arkansas is cheaper at formation ($50) than Kansas ($85). Ongoing costs are also different: $400 vs $145 per year. Total over three years: $1,250 vs $520.

Can I form an LLC in Arkansas if I live in Kansas?

Yes, but your Kansas business will almost certainly need to register as a foreign LLC in Kansas too, which means paying Kansas's foreign registration fee and any ongoing Kansas obligations on top of the Arkansas ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

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

Arkansas online: 2 business days; Kansas online: 1 business day. Arkansas does not offer paid expedite. Kansas does not offer paid expedite.

Which state has lower taxes for an LLC, Arkansas or Kansas?

Arkansas: state income tax applies to member-level pass-through income, plus a $150 minimum entity-level tax. Kansas: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Arkansas and Kansas both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Arkansas or Kansas to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Arkansas vs Kansas LLC comparison

Arkansas charges $50 to form an LLC; Kansas charges $85. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Kansas runs about $730 less in total state fees than Arkansas. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

Arkansas imposes an entity-level annual tax on every LLC ($150 minimum). Kansas does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

On speed, Kansas typically clears standard online filings faster than Arkansas. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Arkansas $50

Kansas $85

Arkansas saves $35

Year 1 total estimate

Arkansas $450

Kansas $230

Kansas saves $220

Ongoing per year

Arkansas $400

Kansas $145

Kansas saves $255

3-year total

Arkansas $1,250

Kansas $520

Kansas saves $730

Key differences at a glance

Arkansas costs $35 less to form ($50 vs $85).
Kansas is $255 per year cheaper to maintain ($145 vs $400).
Arkansas imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Kansas does not.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Kansas

No entity-level franchise or LLC tax

Both states

Online filing
No publication requirement
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Arkansas Kansas

Year 1

$450

$230

Year 2

$850

$375

Year 3

$1,250

$520

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Arkansas, business operates there No foreign LLC registration needed. You pay Arkansas fees only.	$450	$400	$1,250
You live in Kansas, business operates there No foreign LLC registration needed. You pay Kansas fees only.	$230	$145	$520
Non-resident forming in Arkansas with operations elsewhere You pay Arkansas's fees plus a typical home-state foreign LLC registration of about $200 per year.	$650	$600	$1,850
Non-resident forming in Kansas with operations elsewhere You pay Kansas's fees plus a typical home-state foreign LLC registration of about $200 per year.	$430	$345	$1,120

Arkansas vs Kansas: full comparison

Dimension	Arkansas	Kansas
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	2 business days	1 business day
Expedited option Neither state offers paid expedite	Not offered	Not offered
Annual report Required in addition to tax	Required, $150	Required, $90
State-imposed annual tax Franchise, privilege, or LLC tax minimum	$150 minimum	None
State income tax On pass-through LLC income at member level	Yes	Yes
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$300	$115
State sales tax General statewide rate	6.5%	6.5%

Taxes in Arkansas and Kansas

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Arkansas tax

$150 minimum annual tax (flat basis). State income tax applies to member-level pass-through income. Corporate rate 4.3%.

Kansas tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 6.5%.

Ongoing compliance

The recurring filings each state requires after formation.

Arkansas

Annual report $150, due 05/01 each year. Registered agent required in Arkansas.

Kansas

Annual report $90, due 04/15 each year. Registered agent required in Kansas.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Arkansas

Check business-name availability on the Arkansas entity search.
Appoint a registered agent with a physical Arkansas street address.
File Certificate of Organization for Limited Liability Company (Form LL-01) for $50.
Wait for approval. Online typically 2 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by Arkansas statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $150 when it comes due.

Kansas

Check business-name availability on the Kansas entity search.
Appoint a registered agent with a physical Kansas street address.
File Articles of Organization, Domestic Kansas Limited Liability Company (Form DL) for $85.
Wait for approval. Online typically 1 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by Kansas statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $90 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Arkansas and Kansas (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Arkansas or Kansas does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Arkansas Secretary of State, Business and Commercial Services Division

Website: www.sos.arkansas.gov/business-commercial-services-bcs
Phone: (501) 682-3409
Email: corprequest@sos.arkansas.gov
Mail: Victory Building, 1401 W. Capitol Avenue, Suite 250, Little Rock, AR 72201
Hours: 8:00 AM to 4:00 PM Central, Monday to Friday

Kansas Secretary of State, Business Services Division

Website: sos.ks.gov
Phone: (785) 296-4564
Email: kssos@ks.gov
Mail: Kansas Secretary of State, Docking State Office Building, 915 SW Harrison Street, Topeka, KS 66612
Office: Docking State Office Building, 915 SW Harrison Street, Topeka, KS 66612
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Arkansas Department of Finance and Administration, Revenue Division

Website: www.dfa.arkansas.gov
Phone: (501) 682-7089
Mail: Ragland Building, 1900 W. 7th Street, Room 2062, Little Rock, AR 72201
Hours: 8:00 AM to 4:30 PM Central, Monday to Friday

Kansas Department of Revenue

Website: www.ksrevenue.gov
Phone: (785) 368-8222
Mail: Kansas Department of Revenue, Scott State Office Building, 120 SE 10th Avenue, Topeka, KS 66612-1103
Office: Scott State Office Building, 120 SE 10th Avenue, Topeka, KS 66612
Hours: 8:00 AM to 4:45 PM Central, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Arkansas or Kansas?

Arkansas is cheaper at formation ($50) than Kansas ($85). Ongoing costs are also different: $400 vs $145 per year. Total over three years: $1,250 vs $520.
Can I form an LLC in Arkansas if I live in Kansas?

Yes, but your Kansas business will almost certainly need to register as a foreign LLC in Kansas too, which means paying Kansas's foreign registration fee and any ongoing Kansas obligations on top of the Arkansas ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Arkansas vs Kansas?

Arkansas online: 2 business days; Kansas online: 1 business day. Arkansas does not offer paid expedite. Kansas does not offer paid expedite.
Which state has lower taxes for an LLC, Arkansas or Kansas?

Arkansas: state income tax applies to member-level pass-through income, plus a $150 minimum entity-level tax. Kansas: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Arkansas and Kansas both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Arkansas or Kansas to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

ArkansasOpen Arkansas LLC guide →
KansasOpen Kansas LLC guide →

More Arkansas and Kansas comparisons

More Arkansas vs ...

More Kansas vs ...

Sources

Filing fee: www.sos.arkansas.gov/uploads/bcs/LLC_Fees1_1.pdf · verified April 21, 2026
Arkansas SoS BCS Limited Liability Company Filing Fees (Rev. 1/25) under Act 1041 of 2021: Certificate of Organization $50.00 flat. No separate online price shown on the official fee schedule. Online filings via ARK.org add a $5 portal processing fee on top of the $50 state fee.
Filing fee: www.sos.arkansas.gov/uploads/LL-01.pdf · verified April 21, 2026
Arkansas Form LL-01 Certificate of Organization (Rev. 10/21) footer states: Filing Fee $50.00 payable to Arkansas Secretary of State.
Expedited filing: www.sos.arkansas.gov/uploads/bcs/LLC_Fees1_1.pdf · verified April 21, 2026
No paid expedited tier is published on the Arkansas LLC fee schedule. The Doing Business in Arkansas 2025 handbook says online filings are normally updated within 48 hours and mailed filings within 72 hours of receipt, which functions as fast default processing. Recorded as offered: false.
Annual report fee: www.sos.arkansas.gov/business-commercial-services-bcs/franchise-tax-re… · verified April 21, 2026
Arkansas SoS Franchise Tax / Annual Report Forms page: Limited Liability Company (LLC or PLLC) online fee $150, paper fee $150. Online payment adds a $5.00 processing fee per ARK.org.
Franchise tax: www.sos.arkansas.gov/business-commercial-services-bcs/franchise-tax-re… · verified April 21, 2026
Under A.C.A. Section 26-54-101 et seq. (Arkansas Corporate Franchise Tax Act of 1979), LLCs pay a flat $150 annual franchise tax to the Secretary of State. Act 819 of 2021 moved administration of the tax from DFA to the SoS effective May 1, 2021. Due May 1 each year.
Sales tax rate: www.salestaxhandbook.com/arkansas · verified April 21, 2026
Arkansas statewide sales and use tax rate is 6.5 percent under A.C.A. Section 26-52-301. Rate has been unchanged since 2013. DFA Excise Tax pages confirm the rate but are Cloudflare-WAF blocked for scripted access; Sales Tax Handbook used as a public mirror pointing back to DFA.
Corporate income tax rate: taxfoundation.org/data/all/state/state-corporate-income-tax-rates-brac… · verified April 21, 2026
Arkansas top corporate income tax rate is 4.3 percent on taxable income over $11,000 (Tax Foundation 2025 State Corporate Income Tax Rates & Brackets), after Act 2 of the 2nd Extraordinary Session of 2023 cut the top rate from 5.1 percent. DFA corporate page is Cloudflare-blocked for scripted access.
Foreign LLC registration fee: www.sos.arkansas.gov/uploads/bcs/LLC_Fees1_1.pdf · verified April 21, 2026
Arkansas SoS BCS LLC Fees (Rev. 1/25): Application for Statement of Authority by foreign limited liability company $300.00 (item 13). This is the foreign LLC registration fee under the 2021 Uniform Limited Liability Company Act.
Business name search: www.sos.arkansas.gov/corps/search_all.php · verified April 21, 2026
Arkansas SoS business entity search. Confirm name availability before filing the Certificate of Organization.
Operating agreement requirement: law.justia.com/codes/arkansas/title-4/subtitle-3/chapter-38/ · verified April 21, 2026
Arkansas Uniform Limited Liability Company Act (A.C.A. Title 4, Chapter 38, Subchapter 1, Section 4-38-102(13)) defines operating agreement to include oral, implied, in a record, or any combination thereof. No statutory mandate that the agreement be in writing, filed, or adopted at all, so recorded as not required.
Filing fee: sos.ks.gov/forms/business_services/DL.pdf · verified April 21, 2026
Kansas SOS Form DL Articles of Organization, Domestic Kansas LLC (Rev. 2/27/26). Fee schedule on the instruction page: Online Articles of Organization $85, Paper Articles of Organization $90. K.S.A. 17-7673 authorizes the fee. This is a reduction from the prior $160/$165 schedule. The 2024 Freenetlaw seed fee of $160 reflects the earlier rate and has been superseded.
Annual report fee: sos.ks.gov/forms/business_services/ILC.pdf · verified April 21, 2026
Kansas SOS Form ILC Information Report, Limited Liability Company or Series (Rev. 1/23/26). Online Information Report $90, Paper Information Report $110. K.S.A. 17-76,139. The Kansas SOS Information Reports page (sos.ks.gov/businesses/information-reports.html) confirms reports are now filed biennially (every two years) by April 15, with businesses matching the even/odd year of formation.
Corporate income tax rate: www.ksrevenue.gov/pdf/corpbook2024.pdf · verified April 21, 2026
Kansas Corporate Income Tax Instructions (K-120 booklet, 2024). K-120 Line 29 Normal tax is 3.5% of Kansas taxable income; Line 30 Surtax is 3% of Kansas taxable income in excess of $50,000. Combined top-bracket C-corp rate is 6.5% on income over $50,000. Applies to LLCs electing C-corp treatment.
Sales tax rate: www.ksrevenue.gov/bustaxtypessales.html · verified April 21, 2026
Kansas Department of Revenue Sales (Retailers) page: state retailers' sales tax is 6.5% under K.S.A. 79-3603 (effective July 1, 2015). Cities and counties may add local sales tax, pushing combined rates to 10%+ in some jurisdictions.
Foreign LLC registration fee: sos.ks.gov/forms/business_services/FA.pdf · verified April 21, 2026
Kansas SOS Form FA Application for Registration of a Foreign (non-Kansas) Business (Rev. 3/2/26). Filing fee $115 for all foreign business types including LLCs. Foreign registrations must be filed by paper per the Kansas SOS (sos.ks.gov/businesses/register-a-business.html notes that foreign entities cannot file online). K.S.A. 17-7931.
Business name search: www.sos.ks.gov/eforms/BusinessEntity/Search.aspx · verified April 21, 2026
Kansas SOS Business Entity Search. Name availability should also be checked at sos.ks.gov/eforms/BusinessEntity/NameAvailability.aspx before filing the Form DL.
Operating agreement requirement: www.ksrevisor.org/statutes/chapters/ch17/017_076_0110.html · verified April 21, 2026
Kansas Revised Limited Liability Company Act (K.S.A. 17-76,134) recognizes operating agreements but does not require them to be written or adopted. The statute defines operating agreement broadly to include oral or written agreements, and the act provides default rules when no agreement exists. Kansas is not a required-operating-agreement state.

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