CobaltProsper

How to start an LLC in Arkansas

By Brent Chudoba, editor Updated

Forming an LLC in Arkansas costs $45 to file the Certificate of Organization with the Arkansas Secretary of State. After that you file an annual report of $150. Arkansas also charges a franchise or business tax (details below). $150 annual franchise tax filing required; online filing fee is $45 ($50 by paper). Registered agent must maintain a physical street address in Arkansas.

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

Arkansas LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Certificate of Organization)$45
Annual report$150/year
Franchise or business taxYes, see below
Registered agentRequired

Source: Arkansas Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Arkansas?

  1. Name your LLC. Pick a name that is available and meets Arkansas naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Arkansas requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Certificate of Organization. Submit it to the Arkansas Secretary of State and pay the $45 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Arkansas charges $150 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Arkansas have a franchise tax on an LLC?

$150 annual franchise tax required for all LLCs under Arkansas Corporate Franchise Tax Act of 1979 (A.C.A. § 26-54-101)

How is an LLC taxed in Arkansas?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Arkansas has a state individual income tax with a top rate of 3.7% (graduated brackets), so those profits are taxed on your Arkansas return on top of federal tax. Graduated tax structure for the 2026 and following tax years (SB1/Act, signed 5/6/2026, retroactive to 1/1/2026, amending A.C.A. § 26-51-201, cutting the top rate from 3.9% to 3.7%): standard table 0% ($0–$5,599), 2% ($5,600–$11,199), 3% ($11,200–$15,999), 3.4% ($16,000–$26,399), 3.7% ($26,400–$94,700). A simplified 'upper income' table applies to net taxable income above $94,700: 2% on the first $4,700, 3.7% on the remainder, with a bracket-adjustment credit for income between $94,700 and $97,601 to smooth the transition.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

Sources