LLC formation in Arkansas: fees, filing steps, and ongoing costs
Data last updated: Apr 21, 2026Where Arkansas fits, and where it doesn't
Good fit for Arkansas
You live in Arkansas and plan to run your business here. You are a single-member consultant, a small trades operator, or a real estate holding LLC, and the flat $150 franchise tax is a predictable line item for your accounting. You want a state where the Secretary of State handles the annual filing on a single portal instead of juggling two agencies. You are comfortable filing online and paying the small ARK.org processing fee that the portal adds.
Skip Arkansas when
You live in another state and someone pitched Arkansas as a low-cost alternative to Delaware or Wyoming. The $150 flat franchise tax is moderate by national standards, but your home state still wants a foreign LLC registration once the Arkansas LLC operates where you live. You need a firm expedited turnaround for a closing. Arkansas does not publish a paid expedite tier; online filings run about 2 business days by default, which functions as fast but is not guaranteed.
What an Arkansas LLC actually costs
- Formation filing fee Paid once at formation $50
- Commercial registered agent Annual, estimate $100
- Annual report fee Annual, due 05/01 $150
- State LLC tax minimum Flat annual minimum $150
- Year 1 total estimate Formation plus first-year ongoing $450
Registered agent estimate uses a $100 midpoint. Specialist agents start around $50 per year. Full-service formation companies bundle RA for $125 to $200.
Cost across the first three years
How Arkansas compares on the basics
How to apply for an LLC in Arkansas
- Pick a compliant LLC name
The name must end in "Limited Liability Company," "LLC," or an approved abbreviation, and must be distinguishable from every other entity on the Arkansas Secretary of State record. Check availability at the Arkansas entity search.
- Designate a registered agent
Every Arkansas LLC is required to have a registered agent with a physical street address in Arkansas. You can serve as your own agent if you live in Arkansas, or hire a commercial service for $99 to $249/yr. See the Arkansas registered agent guide.
- File Certificate of Organization for Limited Liability Company (Form LL-01)
Filing fee is $50. Online filing is available through the state portal. Mail filings are accepted.
- Apply for a federal EIN
Free directly from the IRS in about 15 minutes (see the EIN guide). Required for opening a business bank account, hiring employees, and most formation-service tax workflows.
- Adopt an operating agreement
Arkansas does not require an operating agreement by statute, but adopting one is strongly recommended to preserve the liability shield. See the operating agreement pillar for the 12 clauses every agreement should include.
Filing walkthrough
You file a Certificate of Organization (Form LL-01) through ark.org/sos/corpfilings. The state fee is $50 whether you file online or by mail, and online filings generally clear in about 2 business days. Mail filings typically run 3 business days from receipt. Arkansas does not sell an expedited tier, which matters if you need a guaranteed date; plan to file online and keep a business day of margin.
You need a registered agent with an Arkansas street address, and you can serve as your own if you live in the state. Commercial agents start around $50 a year. The Certificate of Organization is a short document (name, registered agent, principal office, and organizer signature), and most filers finish it in under 15 minutes. If you file through the ARK.org portal, expect a $5 processing fee on top of the state's $50. The detail that trips people up is the agency confusion on the annual franchise tax side, which we cover under ongoing costs.
How Arkansas taxes an LLC
Arkansas charges a flat $150 annual franchise tax on every domestic and foreign LLC under the Arkansas Corporate Franchise Tax Act of 1979 (A.C.A. Section 26-54-101 et seq.). It is flat: zero-revenue shell LLCs pay the same $150 as a profitable operating LLC. The filing doubles as the annual report; there is no separate Secretary of State annual report fee.
Pass-through LLCs owe no entity-level Arkansas income tax. Income flows to members, who pay Arkansas individual income tax at graduated rates topping out at 3.9% for 2025. An LLC that elects C-corp treatment falls under Arkansas corporate income tax, which is graduated from 1% on the first $3,000 up to 4.3% on income over $11,000 after Act 2 of the 2nd Extraordinary Session of 2023 cut the top rate from 5.1%. Statewide sales and use tax is 6.5%, with local option taking combined rates above 11% in some cities, which makes Arkansas a high-combined-rate sales tax state despite the moderate statewide figure.
Federal treatment is unchanged. The Arkansas franchise tax is a state-level entity-maintenance charge and does not offset any federal obligation.
Ongoing compliance and costs after year one
Budget $150 a year for the franchise tax plus $50 to $125 for a commercial registered agent. The $150 fee is flat and doubles as the annual report, so there is no separate Secretary of State filing to track. Due date is May 1 each year, with the first report due May 1 of the year after formation. Miss the deadline and a $25 penalty plus 10% annual interest kicks in under A.C.A. Section 26-54-111, and the LLC eventually risks administrative dissolution.
The most important thing to know is that the franchise tax is paid to the Arkansas Secretary of State, not the Department of Finance and Administration. Act 819 of 2021 moved administration from DFA to the Secretary of State effective May 1, 2021. Plenty of older guides still send filers to DFA, and a surprising number of accountants do too. The correct portal is sos.arkansas.gov.
If you also operate in another state, that state's foreign LLC fees and annual report run on top of the Arkansas franchise tax. The flat $150 does not exempt you from anyone else's rules.
Common mistakes forming an Arkansas LLC
Two patterns come up. First, paying the franchise tax to the wrong agency. Arkansas moved the franchise tax from DFA to the Secretary of State under Act 819 of 2021, and older guides still direct filers to DFA. Payments go to sos.arkansas.gov. Second, filers budget for a Secretary of State annual report on top of the $150 franchise tax. There is no separate annual report in Arkansas. The franchise tax filing covers both functions, and you are done once it is paid for the year.
State agencies that handle Arkansas LLCs
Arkansas Secretary of State, Business and Commercial Services Division
- Website
- www.sos.arkansas.gov/business-commercial-services-bcs
- Phone
- (501) 682-3409
- corprequest@sos.arkansas.gov
- Victory Building, 1401 W. Capitol Avenue, Suite 250, Little Rock, AR 72201
- Hours
- 8:00 AM to 4:00 PM Central, Monday to Friday
Arkansas Department of Finance and Administration, Revenue Division
- Website
- www.dfa.arkansas.gov
- Phone
- (501) 682-7089
- Ragland Building, 1900 W. 7th Street, Room 2062, Little Rock, AR 72201
- Hours
- 8:00 AM to 4:30 PM Central, Monday to Friday
Frequently Asked Questions
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How much does it cost to form an LLC in Arkansas in 2026?
The state filing fee is $50 for the Certificate of Organization (Form LL-01), payable to the Arkansas Secretary of State. Plan for another $150 a year for the franchise tax and $50 to $125 for a commercial registered agent. Online filing through the ARK.org portal adds a $5 processing fee on top of the state amounts.
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Does Arkansas have an annual report for LLCs?
Yes, but it is packaged with the franchise tax. Arkansas LLCs file a combined Annual Franchise Tax Report with the Secretary of State each year, due May 1, with a flat $150 fee. There is no separate annual report filing and no separate fee. The first report is due May 1 of the year after formation.
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Do Arkansas LLCs pay franchise tax?
Yes. Arkansas charges a flat $150 annual franchise tax on every domestic and foreign LLC under the Arkansas Corporate Franchise Tax Act of 1979. The tax is paid to the Secretary of State (not DFA) since Act 819 of 2021. It is flat regardless of revenue or assets, so a dormant LLC owes the same $150 as a profitable one.
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Do Arkansas LLCs pay state income tax?
Default pass-through LLCs owe no entity-level Arkansas income tax. Income flows to members, who pay Arkansas individual income tax at graduated rates topping out at 3.9% for 2025. An LLC that elects C-corp treatment pays Arkansas corporate income tax, graduated up to 4.3% on income over $11,000 after the 2023 rate cut. Federal tax still applies on top.
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How long does it take to form an Arkansas LLC?
Online filings through the ARK.org portal generally clear in about 2 business days. Mail filings run roughly 3 business days from receipt. Arkansas does not publish a paid expedited service, so if you need a specific effective date, file online and build in a business day of margin.
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Should I form my LLC in Arkansas instead of my home state?
Only if you actually live or operate in Arkansas. The flat $150 franchise tax is predictable, but it is still a cost that stacks on top of your home state's filing once the Arkansas LLC operates where you live. For non-residents with no physical footprint, Wyoming is cheaper and Delaware has more developed case law. Arkansas is a home-state pick.
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Do I pay Arkansas franchise tax to DFA or the Secretary of State?
The Secretary of State. Act 819 of 2021 moved administration of the Arkansas franchise tax from the Department of Finance and Administration to the Secretary of State effective May 1, 2021. Payments go through sos.arkansas.gov. Older guides that still point to DFA are out of date and following them will route your payment to the wrong agency.
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Does Arkansas require an operating agreement?
No. The Arkansas Uniform Limited Liability Company Act (A.C.A. Title 4, Chapter 38) recognizes written, oral, or implied operating agreements and does not require one on file. Any multi-member Arkansas LLC should have a written agreement anyway, to override the statutory defaults and keep a clean paper trail if a dispute ever lands in court.
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How do I apply for an LLC in Arkansas?
Apply for an LLC in Arkansas by filing Certificate of Organization for Limited Liability Company (Form LL-01) with Arkansas Secretary of State, Business and Commercial Services Division. The filing fee is $50. Online filing is available through the state portal. Approval typically takes 2 business days online. Mail filings take about 3 business days. Before filing, pick a registered agent (see the Arkansas registered agent guide) and confirm your business name is available using the state's entity search.
Further reading on LLCs
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Formation, annual, and hidden fees broken down across all 51 US jurisdictions.
Registered agents for LLCs
What the role is, whether to be your own, and honest comparison of 12 national services.
LLC vs sole proprietorship
Liability, taxes, cost, and when each makes sense. Written for a working owner.
LLC vs S-corp election
When the S-corp tax election actually saves money, with concrete SE-tax math.
Dissolve a Arkansas LLC
Step-by-step dissolution: member vote, tax clearance, state filing, IRS closure.
Formation services compared
Bizee, Northwest, ZenBusiness, LegalZoom, and 11 more. Honest price comparison.
Compare Arkansas to another state
Side-by-side breakdowns of fees, taxes, approval time, and compliance. Every other US jurisdiction has a dedicated compare page against Arkansas.
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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.