How to Start An LLC In Arkansas

Starting an LLC by yourself? No worries—I’ve got you covered! Follow my step-by-step guide till the end, and you’ll have your LLC up and running in no time.

But if you prefer expert help, I recommend three top LLC formation companies that can make the process smooth and hassle-free:

Want to DIY your LLC? Keep reading my guide below and take control of your business formation! 👇

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

Starting an LLC in Arkansas is pretty affordable—no wallet-draining surprises here! The filing fee to officially set up your Arkansas LLC is $45 when filing online, or $50 if you go the paper route. Either way, it’s a small price to pay to make your business official.

But don’t forget about the Annual Franchise Tax Report, which comes with a $150 fee every year. Think of it as Arkansas’s way of keeping tabs on your LLC and making sure it stays in good standing.

So, if you’re ready to launch your business in The Natural State, the cost isn’t too steep

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

Forming an LLC in Arkansas? Here’s the scoop!

• Online filings take about 3-7 business days (not instant, but still pretty quick!).
• Mailed filings will have you waiting around 7-10 business days (snail mail strikes again 🐌).
• In-person drop-offs? Expect 3-7 business days to get the job done.

So, while it’s not lightning-fast, Arkansas still keeps things moving at a decent pace. If you’re in a hurry, online is your best bet! 🚀

5 Steps in Detail to Start An LLC in Arkansas

Here are the 5 steps I mentioned above but now in detail to help you form an LLC in Arkansas. Just follow these steps and you can form an LLC in Arkansas by Yourself.

1. Pick the Perfect Name for your Arkansas LLC

So, you’ve got the perfect name in mind for your Arkansas LLC—something catchy, professional, and uniquely you. But before you start celebrating, you need to make sure it’s actually available. The last thing you want is to print business cards and set up a website only to find out someone else already claimed it!

Step 1: Head Over to the Arkansas Business Search Tool

Arkansas makes this process super easy. Just hop over to the Arkansas Secretary of State’s Business Search Tool (you can find it here). This is the official database that lets you check if your dream LLC name is already taken.

Step 2: Enter Your Desired LLC Name

In the search box, type in your LLC name idea without “LLC” at the end. For example, if you want “Razorback Roofing LLC,” just search for “Razorback Roofing.” This helps you see if any similar names exist that could cause confusion.

Step 3: Analyze the Results

If no exact matches pop up—congrats! Your name is likely available. But if you see a similar name, you might need to tweak yours slightly to avoid rejection by the state. Arkansas won’t allow names that are too close to existing businesses.

Step 4: Check for Trademarks (Just in Case)

Even if the name is free in Arkansas, someone else might have a federal trademark on it. To be extra safe, do a quick search in the USPTO trademark database

Step 5: Reserve Your Name (Optional)

If you’re not quite ready to file your LLC but don’t want someone else snatching your name, you can reserve it for 120 days by filing an Application for Reservation of an Entity Name. This costs $25 and can be done online or by mail.

That’s It! 🎉

Once your name is good to go, you’re ready for the next step—actually forming your Arkansas LLC! Need help with that? I’ve got you covered. Just let me know! 🚀

2. Appoint a Registered Agent

So, you’re setting up an Arkansas LLC, and now you need a registered agent. If you’re wondering, “Do I really need one?”—yep, Arkansas requires every LLC to have a registered agent to receive important legal and government notices. But don’t worry, appointing one is super easy!

Step 1: Pick Your Registered Agent

This is like choosing your business’s official messenger—the person or service that makes sure you don’t miss any important legal documents. Here are your options:

• You can be your own registered agent (as long as you have a physical address in Arkansas and don’t mind being available during business hours).
• A friend or family member can do it (again, they need an Arkansas street address and must be available Monday-Friday, 9-5).
• Hire a professional registered agent service (great if you want privacy and don’t want your personal address listed on public records).

Step 2: Appoint the Agent on Your LLC Formation Documents

If you’re forming a new LLC, you’ll list your registered agent in the Certificate of Organization (Form LL-01). You can file this:

• Online via the Arkansas Secretary of State’s website ($45 filing fee).
• By mail ($50 filing fee).

If you’re changing your registered agent later, you’ll need to file a Statement of Change of Registered Agent, which costs $22.50 online or $25 by mail.

Step 3: Get Their Permission

Arkansas requires that your registered agent agrees in writing to serve as your agent. If you’re using a professional service, they’ll handle this part for you. If it’s a friend, family member, or yourself, you’ll need to provide consent in writing.

Step 4: Keep Your Info Updated

If your registered agent moves or changes, update the information with the Arkansas Secretary of State ASAP. If you don’t, you could miss an important notice—and trust me, you don’t want that!

Summary

Choosing a registered agent might seem like a small step, but it’s an important one! If you don’t want to deal with government mail, legal documents, or being available 24/7, a professional registered agent service is worth considering.

I recommend Registered Agents Inc.

why Registered Agents Inc. is the best-registered agent service:

• Privacy-Protecting Pros – Keep your personal address off public records! Registered Agents Inc. provides a professional business address to shield your personal details from the world.
• Reliable and Nationwide – Whether you’re setting up shop in one state or going national, they’ve got you covered in all 50 states with consistent, high-quality service.
• Transparent Pricing, No Surprises – No hidden fees or sneaky upsells! Their pricing is straightforward: $200 per year and you know exactly what you’re paying for.
• Business Formation Experts – Need help starting your business? They’ll file your LLC or corporation paperwork for just $100 plus state fees, and you get one year of free registered agent service—a deal that’s hard to beat!
• Top-Tier Customer Support – Unlike some companies that treat you like just another number, their support team is responsive, knowledgeable, and actually helpful.
• Fast and Secure Document Handling – They scan and forward your important legal documents ASAP, so you never miss a deadline or critical notice.
• Extra Business Perks – Need a business domain, SSL, website, email, or phone number? They’ve got affordable add-ons starting at just $5 per month!
• 100% U.S.-Based Service – No outsourced support or confusing automated systems—just real, professional experts who know business compliance inside and out.
• Perfect for Multi-State Businesses – Expanding? They make it easy to maintain compliance in multiple states without the hassle of juggling different registered agents.
• Peace of Mind, Guaranteed – With compliance reminders and proactive alerts, you’ll never forget an important filing or legal notice again.

If you’re looking for a rock-solid, no-nonsense registered agent service that puts privacy, reliability, and great support first, Registered Agents Inc. is the way to go! 🚀

3. File Your Certificate of Organization

The Certificate of Organization is the official document that establishes your LLC with the state. You’ll need to provide:

✅ LLC Name (make sure it follows the rules above)
✅ Principal Office Address (where your business operates or where you receive mail)
✅ Registered Agent Name & Address (this person or company will receive legal documents on your LLC’s behalf)
✅ Organizer’s Name & Signature (whoever is setting up the LLC signs here)
✅ Management Structure (Will your LLC be member-managed or manager-managed?)

Now that your document is ready, it’s time to file it! You have two options:

Option 1: File Online (Faster & Easier) 💻

• Go to the Arkansas Secretary of State’s website.
• Select the LLC filing option and follow the prompts.
• Pay the $45 filing fee with a credit or debit card.
• You’ll get a confirmation once it’s approved.

👉 Processing Time: Due to heavy volume, online filings are currently processed within 3-7 business days

Option 2: File by Mail (Slower but Still Works) 📬

• Download and print the Certificate of Organization form from the Secretary of State’s website.
• Fill it out completely and sign it.
• Mail it along with a $50 check or money order (payable to the Arkansas Secretary of State) to:
  Arkansas Secretary of State – Business & Commercial Services
  1401 W. Capitol Avenue, Suite 250
  Little Rock, AR 72201

👉 Processing Time: Mailed filings are currently processed within 7-10 business days after receipt. 

4. Create an Operating Agreement

Now it’s time to put together an Operating Agreement. While Arkansas doesn’t require you to have one, it’s like the rulebook for your LLC. Trust me, having one is a smart move. It keeps things clear, protects your business, and helps you avoid potential headaches down the road.

Here’s what your Operating Agreement should cover:

1. Basic LLC Info (The Who, What, and Where)

Start with the basic details:

• LLC Name – Make sure it matches your official filing.
• Business Address – This is where your business “lives” on paper.
• Formation Date – The day your LLC became official.
• Registered Agent Info – Who’s responsible for receiving legal documents? (Hint: You, a friend, or a professional service.)

2. Who’s Running the Show? (Management Structure)

Your Arkansas LLC can be:

• Member-Managed – The owners (members) run daily operations.
• Manager-Managed – You appoint a manager (or multiple managers) to handle things.

Whichever you choose, outline how decisions will be made and who has the final say.

3. Members and Ownership Stakes

• List all LLC members (owners).
• Break down who owns what percentage.
• Include how profits and losses are divided (equal splits? Based on investment?).

This section is crucial—especially if you have multiple members.

4. Money Matters: Contributions & Distributions

• How much money, property, or services did each member contribute?
• How and when will profits be distributed?
• Can members take a salary?
• How do you handle additional contributions (if more money is needed)?

5. Decision-Making Rules

Your LLC needs a game plan for:

• Voting power (Does each member get an equal vote, or does it depend on ownership percentage?).
• What happens when there’s a disagreement?
• How big decisions (like taking on debt, selling assets, or adding new members) get approved.

6. Membership Changes (Joining or Leaving)

People come and go—your Operating Agreement should explain:

• How to add new members.
• The process if a member wants to leave.
• What happens if a member passes away or becomes unable to manage the business?

Having these rules in place keeps things smooth when life throws curveballs.

7. Dissolving the LLC (Worst-Case Scenario)

You don’t start a business expecting it to end, but if it does, this section should explain:

• How assets and debts will be handled.
• The official dissolution process in Arkansas.
• What steps to take with the state (like canceling registrations and final tax filings).

8. Liability Protection (Keep Your Personal Stuff Safe)

This is a big one! Your Operating Agreement should state that your LLC is a separate legal entity, meaning members aren’t personally responsible for business debts. This helps protect your personal assets (like your home, car, and savings).

9. Meeting Requirements (Yes, Even for an LLC)

Even though Arkansas doesn’t require LLCs to hold meetings, it’s a good idea to include:

• How often members should meet?
• What needs to be discussed (financials, new opportunities, etc.).
• How decisions are documented (meeting minutes, written agreements, etc.).

10. Any Other Special Rules

Every LLC is unique! You might want to include extra details, like:

• Non-compete clauses (to prevent members from starting a competing business).
• Confidentiality agreements (to protect trade secrets).
• Buy-sell agreements (in case a member wants out).

In Short!

Your Arkansas LLC Operating Agreement isn’t just some boring legal form—it’s your business’s playbook. It keeps everything clear, helps prevent conflicts, and shows banks, investors, and even courts that your LLC is legit.

Want to keep it extra smooth? Consider having an attorney review it (or at least using a good template to get started). Once it’s drafted, make sure all members sign it and keep a copy on file.

Boom! Now you’ve got a rock-solid Operating Agreement for your Arkansas LLC. 🚀

5. Get an EIN from the IRS

So, you’ve got your shiny new Arkansas LLC—congrats! 🎉 But before getting a (sweet tea, since we’re talking about Arkansas), there’s one more crucial step: getting an EIN from the IRS.

An EIN (Employer Identification Number) is basically your LLC’s Social Security number. It’s a must-have for taxes, banking, and credibility—even if you’re a one-person show. But don’t worry, it’s free to get, and you won’t have to deal with any hidden fees (looking at you, shady services that charge for this!).

Here’s why your Arkansas LLC needs an EIN:

1. Open a Business Bank Account 🏦

Most banks won’t let you open a business checking account without an EIN. Keeping your personal and business finances separate is crucial for liability protection—because trust me, you don’t want the IRS thinking your LLC’s money is just extra spending cash for weekend BBQs.

2. Hire Employees (Now or in the Future) 👥

Even if you’re running a solo operation today, you might expand later. An EIN is required to hire employees legally and handle payroll taxes. So if you ever decide to bring someone on board, you’re already prepared.

3. Establish Business Credit 💳

If you want to build business credit (so your LLC can qualify for loans, credit cards, or vendor accounts), an EIN is a must. It separates your personal credit from your business finances and makes you look more legit in the eyes of lenders.

4. File Taxes Properly 📝

Even if your LLC is single-member and taxed as a disregarded entity, you’ll still need an EIN if you’re required to file excise taxes, sales tax, or payroll taxes. And if your LLC is taxed as an S-Corp or partnership, an EIN is non-negotiable.

5. Avoid Using Your SSN Everywhere 🔒

Without an EIN, you’d have to use your Social Security number (SSN) on tax forms and business documents, which increases the risk of identity theft. An EIN keeps your personal details private and makes your business look more professional.

How to Get an EIN for Your Arkansas LLC (For Free!)

Applying for an EIN is 100% free when you do it directly through the IRS website. Here’s how:

✅ Online – The fastest way! Go to the IRS EIN application page and apply (if you have an SSN or ITIN).
✅ Fax or Mail – Fill out Form SS-4 and send it in. (Fax gets you a response faster than mail.)
✅ International Applicants – If you don’t have an SSN or ITIN, you’ll need to call the IRS at +1-267-941-1099 (yep, international call rates apply). I have covered the detailed guide About How to Obtain EIN As a Non-US Resident.

My Two Cents

Getting an EIN is quick, free, and essential for your Arkansas LLC. Whether you’re a solopreneur, a future employer, or just want to keep Uncle Sam happy, an EIN helps you run a smooth, legit business.

What do I do after my LLC is approved?

There are a few important steps to take to keep everything legit and running smoothly. Let’s go through them in a friendly, no-nonsense way so you know exactly what to do next.

Open a Business Bank Account (Keep It Separate!)

Mixing personal and business finances is a big no-no if you want to protect your personal assets. A dedicated business bank account makes bookkeeping easier and keeps your LLC’s legal protections strong.

💼 What you’ll need at the bank:
✅ EIN
✅ Certificate of Organization (approved LLC paperwork)
✅ Operating Agreement (some banks require it)

🔹 Pro tip: Ask about free business banking options—some banks charge sneaky fees you don’t need.

Get Any Required Business Licenses & Permits

🚦 Arkansas doesn’t require a general business license, but some cities and industries do.

🔹 What to check:
✅ Local city/county office for local licenses
✅ Arkansas Department of Finance and Administration for state-level permits
✅ If selling taxable products/services, get a sales tax permit from the DFA

📍Need help? The Arkansas Small Business and Technology Development Center is a great resource.

Register for State Taxes (If Needed)

Depending on your business type, you may need to register for state taxes. Here’s a quick rundown:

💰 Sales Tax – If you’re selling products or taxable services, register with the Arkansas Department of Finance and Administration.
👩‍💼 Employee Withholding Tax – If you have employees, you’ll need to set up payroll taxes.
🏛️ Franchise Tax – ALL Arkansas LLCs must pay a $150 franchise tax fee every year by May 1st.

🔹 How to pay? File with the Arkansas Secretary of State or through their online system.

6. File Your Beneficial Ownership Information (BOI) Report

🆕 New rule alert! Since 2024, LLCs must file a BOI Report with FinCEN to disclose who owns the business.

⏳ Deadline: 90 days from approval if you formed in 2024 or later.

🔹 How to file? It’s free and done online at FinCEN.gov.

Consider Business Insurance (Better Safe Than Sorry)

Even if you’re running a simple business, insurance can be a lifesaver. Here are a few types to consider:

🛡️ General Liability Insurance – Covers lawsuits, accidents, or property damage.
👨‍⚕️ Professional Liability Insurance – If you give advice or provide services (consultants, accountants, etc.).
⚙️ Workers’ Compensation – Required if you have employees.

🔹 Shop around for the best rates—don’t overpay for coverage you don’t need!

Set Up Accounting & Bookkeeping (Don’t Wait!)

📊 Good bookkeeping = stress-free tax time. Even if you’re a one-person operation, you’ll want to track income and expenses properly.

📌 Options:
✅ Use software like QuickBooks, Wave, or FreshBooks
✅ Hire a bookkeeper (or use an online bookkeeping service) I recommend doola, here is a 10 percent discount: DOOLAREHAN10
✅ Open a separate business credit card for expenses

Market Your Business & Get Customers!

Now for the fun part—getting your name out there!

📢 Essential steps:
✅ Create a website (a simple one is fine to start)
✅ Claim your Google My Business listing (if local)
✅ Set up social media pages
✅ Network and spread the word

💡 Bonus Tip: If you’re not sure where to start, offering a promo or discount can help bring in your first customers.

 Stay Compliant (So You Don’t Get Fined!)

A little upkeep goes a long way. Make sure to:

📆 File your franchise tax report – $150 due May 1st every year.
📆 Keep licenses/permits up to date – Check renewal deadlines.
📆 Update your BOI report if ownership changes.

DON’T FORGET to File Your LLC Annual Franchise Tax Report! 📢

This one’s important—every Arkansas LLC must file an Annual Franchise Tax Report and pay the $150 fee by May 1st each year.

🛑 What happens if you forget?
🚨 Late fees.
🚨 Possible loss of good standing.
🚨 Worst-case scenario? Your LLC could be dissolved.

🔹 How to file? Do it through the Arkansas Secretary of State’s website. Set a reminder so you don’t miss it!

File Taxes for Your Arkansas LLC (Without Losing Your Sanity)

Now comes the part that most business owners dread: filing taxes. But don’t worry, it’s not as bad as it sounds (especially if you have a solid bookkeeping system in place—more on that later).

Arkansas LLC taxes can be pretty straightforward if you know what to expect. Whether your LLC is a single-member or multi-member, taxed as a disregarded entity, partnership, or S-Corp, this will walk you through everything step by step.

1. Know Your Tax Classification

Your LLC doesn’t pay its own federal taxes (unless you elect C-Corp taxation). Instead, your income “flows through” to your personal tax return. Here’s how it breaks down:

• Single-Member LLC: By default, the IRS treats you as a sole proprietor for tax purposes. You report your profits and losses on Schedule C of your personal Form 1040.
• Multi-Member LLC: The IRS sees you as a partnership, so you’ll file Form 1065 and issue Schedule K-1s to each member.
• S-Corp Election: If you elect S-Corp status, you’ll file Form 1120-S and pay yourself a reasonable salary, which can help reduce self-employment taxes.

🔹 Pro Tip: If you’re making $50K+ in profit, consider electing S-Corp status to save on taxes.

2. Don’t Forget the Arkansas Franchise Tax

Arkansas hits all LLCs with an Annual Franchise Tax of $150, due by May 1st each year.

• You file this tax with the Arkansas Secretary of State at sos.arkansas.gov.
• Even if your LLC made zero dollars, you still have to pay this fee—Arkansas doesn’t let you off the hook.

3. Self-Employment & Income Taxes

If your LLC is taxed as a sole proprietorship or partnership, you’ll owe self-employment taxes (15.3%) on your earnings—this covers Social Security and Medicare.

Then, there’s Arkansas state income tax, which ranges from 2% to 4.9% depending on your taxable income. You report LLC profits on your personal tax return.

• State tax payments go to the Arkansas Department of Finance & Administration (DFA).
• If you expect to owe more than $1,000 in taxes, you’ll need to pay estimated taxes quarterly (April, June, September, and January).

4. Collect and File Sales Tax (If Needed)

• If you sell products or taxable services in Arkansas, you need to collect sales tax from customers.
• Arkansas has a 6.5% state sales tax plus local taxes, which vary by county.
• You register for a Sales Tax Permit through the Arkansas DFA and file sales tax reports online.

5. Keep Your Books in Order (Seriously, It Helps)

Let’s be real: Taxes are 10 times harder if your books are a mess. This is where Doola’s bookkeeping service comes in and I have partnered with them to bring a 10 percent discount to my readers Use Code: DOOLAREHAN10.

They help LLC owners:

✅ Track income & expenses effortlessly
✅ Stay compliant with tax deadlines
✅ Get accurate financial reports
✅ Have stress-free tax filing (seriously, no more last-minute panic)

Running a business is already hard enough, so why make taxes harder? With Doola’s bookkeeping, you can focus on growing your Arkansas LLC instead of drowning in spreadsheets. Check them out—it’s a game-changer!

In Short!

Filing taxes for an Arkansas LLC is manageable as long as you stay organized. Know your tax classification, pay the franchise tax, handle sales tax if needed, and keep solid records.

And if you want bookkeeping that makes tax time a breeze, let Doola handle the numbers while you focus on running your business.

📌 Ready to simplify your LLC finances? Check out Doola’s bookkeeping service.

Summary🎉

That’s it—you’re officially up and running in Arkansas! Just knock out these steps, and you’ll have a rock-solid foundation for your LLC. Need help along the way? Bookmark this guide or reach out for advice!

Now, go build that business! 🚀💼

Wrapping It Up!

Starting an LLC in Arkansas isn’t rocket science, but it’s definitely a process you want to get right. From picking the perfect name to filing your Certificate of Organization, grabbing an EIN, and making sure you stay on top of that annual franchise tax, each step builds a solid foundation for your business.

The best part? Arkansas makes it pretty affordable to form an LLC compared to other states. So whether you’re launching a local shop, an online hustle, or your next big empire, an LLC gives you the legal protection and flexibility to grow without unnecessary stress.

So, what’s next? Double-check those requirements, file your paperwork, and get ready to bring your business dream to life. The sooner you start, the sooner you can make things happen—so go for it! 🚀

How to Start an LLC in Arkansas FAQs

Here’s a fun and easy-to-understand FAQ section that breaks it all down for you. If you have any questions left.

What is the Arkansas LLC franchise tax?

very LLC in Arkansas has to pay a $150 franchise tax each year. This tax is due by May 1st and is basically a “thank you for existing” fee that keeps your LLC in good standing with the state.

Do I need an Operating Agreement for my LLC in Arkansas?

It’s not required, but it’s highly recommended. An Operating Agreement outlines how your LLC will be run, which is super helpful if you have business partners. Even if you’re a single-member LLC, having one can help protect your personal assets.

Can I run my Arkansas LLC from another state or country?

Yep! You don’t have to live in Arkansas to own an LLC there. But you’ll still need a registered agent with an Arkansas address to handle any official documents.

How do I officially start my Arkansas LLC?

To officially form your LLC, you need to:

1. Pick a unique name (make sure it’s available in Arkansas).
2. Choose a registered agent (yourself or a service).
3. File the Certificate of Organization with the Arkansas Secretary of State
4. Get an EIN from the IRS (if needed).
5. Create an Operating Agreement (optional, but smart).
6. Comply with tax and business licensing requirements (if applicable).
7. Pay your $150 annual franchise tax (due May 1st).

The material on this website is intended for general information purposes only and should not be construed as legal, tax, or financial advice. Laws and regulations vary by jurisdiction and might change over time. It is critical to obtain specialized guidance that fits your individual situation. The opinions presented here are purely those of the writers and should not be considered professional advice. For any legal or tax-related issues, it is best to speak with a certified specialist who can give specialized advice based on your specific circumstances.