Are you ready to start a business in Arkansas or make the shift from a sole proprietorship to a limited liability company, or LLC? Getting an LLC license comes with many benefits, including personal asset protection, tax incentives, and ownership flexibility other business entities can’t provide. However, before you can enjoy their many advantages, you should know about Arkansas LLC fees you’ll need to pay—and when you have to pay them.
In this post, we’ll discuss all of the costs associated with forming an LLC in Arkansas, including:
Let’s get started.
Cost To Reserve Your Business Name
Small businesses make up 99.3% of all businesses in Arkansas. That means there are a lot of companies out there, and your first choice for an LLC name may already be taken. Before you start the filing process, check the Arkansas Secretary of State's website to see if your business name is available.
If it is, look it up on the Trademark Electronic Search System (TESS) database to make sure your business name is also available here. If another company is using your name, you could risk trademark infringement. Usually, a search on Arkansas’ Secretary of State site will suffice, but it never hurts to be extra cautious.
Speaking of being cautious, we recommend reserving your business name even though it’s not a requirement. It only costs $25 to do so ($22.50 if you file online), and once you do, the name is reserved for 120 days. By chance, if another company reserves your organization’s name while you’re in the process of forming your LLC, you will have to change your name and possibly even repeat the whole process. Spending $22.50 or $25 to avoid this risk is well worth it.
For extra credit, check to see if your business name’s URL is available. If another business already uses that domain name, it may be harder for customers to find you online. For example, if you’re considering naming your company “Cupcake Party” but www.cupcakeparty.com but another business already has that domain, consider switching to a “.org” or coming up with a different company name.
Arkansas Business Name Requirements
Not only does your LLC name need to be original—it also needs to be different enough from other corporations or LLCs in Arkansas to distinguish it as a business entity. For example, if there’s already an Arkansas LLC named “Cupcake Party LLC,” you cannot name your business “A Cupcake Party LLC,” “The Cupcake Party LLC,” or “Cupcake Party Ltd.”
You must already include “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.” in your business entity’s name. Also, it cannot include the term “Olympic” or other trademarks of the International Olympic Committee, anything that misconstrues it with state or federal state, such as “FDA” or “FBI,” nor can it imply that you’re conducting illegal business activity.
Arkansas LLC Filing Fees
Once you’ve figured out your business name, the next step is to file your articles of organization. Your articles of organization are the legal documents that outline your LLC’s basic information. To complete your articles of organization, you will need to know the following:
Double-check this document before submitting it. Any errors made can cause you a major headache later on.
The filing fee for your articles of organization costs $45 online and $50 via mail.
Registered Agent Fees
Your registered agent is the person or commercial entity responsible for receiving and managing your LLC’s government and legal correspondence. They must have a physical address in Arkansas. If you’re thinking about becoming your organization’s registered agent but only have P.O. Box in the state, that won’t be enough.
Once your organization becomes an official LLC, its physical address is public knowledge. Suppose you don’t want your address to be accessible to the public. In that case, you can either make another member of your LLC the official registered agent or work with a commercial registered agent service. Going this route costs $50.Cost To Create An Operating Agreement
Think of your operating agreement as your organization’s constitution.
Your operating agreement is a document that highlights the rules, regulations, and liabilities of your LLC. Arkansas does not legally require you to submit an operating agreement when filing your articles of organization. However, every business should create one anyway, even if you’re a single-member LLC with no employees.
Here are some questions you should answer in your operating agreement:
You should also include how to dissolve an LLC and all the information you submitted in your articles of organization.
At the bare minimum, your operating agreement will help you think about your LLC in a more formal way than you might have before. However, this document often serves a much greater purpose. If you ever end up in a financial or legal dispute, your operating agreement should play a decisive role in resolving the situation. If you don’t have an operating agreement, this decision may be left up to the courts, and the end result might not be in your or your organization’s best interest.
Operating agreements don’t cost anything to draft or submit. However, you might want to hire an attorney when creating one.
LLCs Fees In Arkansas For Business Licenses
Business license fees in Arkansas will vary between $50 and over $1,000 depending on your organization’s industry and the amount and kind of inventory you have. Usually, you need to renew your business licenses annually.
Before applying for your license, check to ensure that your organization's location and type comply with local zoning regulations. Checking this doesn’t cost anything, but permit application fees for changing your zoning status vary, and zoning laws are very different throughout Arkansas.
Sales Tax Registration Fees
If you are selling property or services that are subject to sales tax in the state of Arkansas, you are required to first register for a permit. Applying for a sales tax permit costs $50, and you can register for one online at the Arkansas Taxpayer Access Point (ATAP).
When you register, you need to provide the following:
Depending on your business, you’ll be required to file and remit sales tax on a monthly, quarterly, or annual basis. They are due on the 20th of the month after your reporting period. For instance, if you are filing for the first quarter of the year, your due date is April 20th.
Annual Fees Arkansas LLC
Once your Arkansas LLC is up and running, you must comply with the local, state, and federal requirements to remain in good standing. One crucial requirement is to file your annual report. This report and the $150 filing fee are both due on or before May 1st of each year, starting the year after you form your LLC.
While Arkansas’ annual fee is more expensive compared to some states, it’s also more affordable than others. For instance, Delaware LLC fees are $300 annually, California LLC fees are $800 or more, and Tennessee LLC fees are $300 plus an additional $50 for each partner or owner up to $3,000!
Total Cost Of Arkansas LLC Fees
Here’s the full list of all the main LLC fees in Arkansas and how often they’re due:
Fee Type | Cost | HOW OFTEN |
|---|---|---|
Business name reservation | $22.50 online, $25 via mail | One time |
DBA name designation | $22.50 online, $25 via mail | One time |
Articles of organization filing fee | $45 online, $50 via mail | One time |
Operating agreement costs | $0 if you do it yourself | One time |
Statutory agent fees | $0 if you do it yourself | Annually |
Business license fee | $50 - $1,000+ | Annually |
Sales tax registration fees | $50 | Annually |
Annual fees | $150 | Annually |
Additional FAQs
Do you still have more questions about LLC fees in Arkansas or more questions about LLCs in general?
While your legal business name is required to be used on official documents, like your annual report and articles of organization, you don’t have to use it in everyday conversation. If you want to build brand recognition via another name, you can file for a “Doing Business As” (DBA) name. Your DBA name can come in handy if it’s easier to remember or if there’s already another company using your name. Your DBA name designation costs $22.50 online and $25 via mail.
The information needed for your annual report is very similar to that of your articles of organization. The form requires:
While no two business entities are identical, many of the fees associated with forming an LLC in Arkansas are comparable to that of an S Corp. For a full breakdown of the fees required to form an S Corp, visit Arkansas Secretary of State’s website.
While Arkansas doesn’t have a state-level general business license, you will probably need one for your city or county and should have one for each one you’re operating in.
Conclusion: How Much Do Arkansas LLC Fees Cost?
Are you ready to form an LLC in Arkansas and enjoy personal liability protection, tax benefits, and everything else LLCs have to offer? Now that you know more about how much Arkansas LLC fees will cost, you’re that much closer to starting a successful business!
Are you ready to capitalize on that success? Check out The Lazy Man’s Guide to Living The Good Life, and learn how to optimize your chances of running a thriving business!
