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Why Create an Arkansas LLC?

The are several business incentives and credits offered within the state of Arkansas that businesses can take advantage of, provided your LLC meets the specific criteria. For example, the Apprenticeship Program provides qualifying businesses with the opportunity to receive up to $2000 or 10% of the wages earned by the youth apprentice for each apprentice.

Creating an Arkansas limited liability company (LLC) is generally the fastest and easiest way, for entrepreneurs wanting to start a business in Arkansas. With more simplified rules and regulations, an LLC is an ideal business entity for startups and small to medium-sized businesses, granting you the advantages and protections that larger Arkansas corporations benefit from.

Benefits of starting an Arkansas LLC:

  • Easily file your taxes and discover potential advantages for tax treatment

  • Create, manage, regulate, administer and stay in compliance easily

  • Protect your personal assets from your business liability and debts

  • Low cost to file ($45)

Learn more about the benefits of the LLC business structure.

In this guide, you’ll find information on naming your LLC, getting a Registered Agent, the fees you’ll need to pay, Arkansas business taxes and much more. We also cover your registration needs, filing your Arkansas LLC and how you'll correspond with the Arkansas Secretary of State (SOS).

 

How to Form an LLC in Arkansas Yourself in 6 Steps

1

Complete an Arkansas LLC Search and Choose a Unique Business Name

To start the process, you’ll need a name for your LLC that’s unique and stands out, but you'll want to make sure that it's not being used by any other business or formed entity in the state. If you’re having trouble coming up with a name, try using Incfile’s Business Name Generator to brainstorm ideas. You'll also need to follow a few naming rules, which you can read about in detail on the Arkansas Business Names page.

Once you’ve chosen a name, you’ll need to make sure it’s available in Arkansas. To find out whether another corporation or company in the state is already using your preferred business name, use our tool to do a business name search. You can also carry out a name search within the Arkansas Secretary of State's website via their business entity search.

We can search the state of Arkansas business registry for you

2

Provide an Official Business Address for Your LLC

Regardless of whether your business is in an office building, a home (if the company is run from a residence) or any other physical location, every Arkansas LLC must have a designated street address. It can be located outside the state of Arkansas, but it cannot be a P.O. Box.

3

Assign a Registered Agent

A Registered Agent is someone who receives official legal and tax correspondence and is responsible for filing reports with the Arkansas Secretary of State (SOS). Every LLC in Arkansas is required to have a Registered Agent.

This position can be filled by you, another manager in your business or a dedicated Registered Agent service. If your Arkansas Registered Agent is a person, they must have a physical street address in Arkansas and must be present during business hours to receive important documents on behalf of your business. In Arkansas, you appoint your Registered Agent when you file your Articles of Organization and formally create your business.

All of Incfile’s packages include Registered Agent service. It’s free for the first year and just $119 per year after that. We also provide you with access to our dashboard where you can easily view any document we've received on your behalf.

4

File Your Articles of Organization with the Arkansas Secretary of State (SOS)

Once you've gathered all the information for your Arkansas LLC, you’ll need to file your Articles of Organization with the Arkansas Secretary of State.

The certificate must include:

  • Name of your LLC
  • Principal address of the business
  • Name, address and contact information of the Registered Agent
  • Whether the LLC is will be member-managed or manager-managed
  • Name(s) and signature(s) of authorized person(s)

Your Articles of Organization can be filed online with the Arkansas Secretary of State, via their website, or by mail or in person. The Arkansas LLC filing fee is $45, and an additional $5 fee is require if you choose to file a paper form.

You only need to file your Articles of Organization once, however all LLCs in Arkansas must file an annual report via their online service once a year to remain compliant with the Secretary of State. There is a fee of $155 set by the AR Secretary of State for this service.

The annual report fee also takes care of the Arkansas Franchise Tax which has recently been updated. As of March 2021, all franchise tax is to be paid to the Secretary of State and is due at the time of your annual report. This combined requirement has now been labeled an "Annual Franchise Tax Report."

Let Incfile Handle all the Paperwork for You for $0 + the Arkansas State fee

What are the fees and requirements to form a business in Arkansas?

State Fee

$45*

State Filling Time

3 Weeks

Expedited Filing Time

7 Business Days

*$45 if completed online, $50 if completed via paper form

Annual Report

Frequency

Annually

Due Date

May 1st

Filing Fee

$155

Note

Initial report due May 1st of the year following formation or qualification.

5

Get an Employer Identification Number (EIN) from the Internal Revenue Service

You’ll need an EIN to identify your business to the IRS. You use this number when filing and paying taxes or when submitting payroll information and payments for your employees. An EIN is also required to open a business bank account. You can obtain one directly from the IRS, or you can have Incfile obtain one for you as part of the Arkansas LLC formation process.

6

Create an Operating Agreement

An operating agreement is a kind of "instruction manual" that explains how you'll run your business. AnLLC Operating Agreement will outline key components of your business - how decisions will be made, how the business is divided among members and what will happen if a member leaves the company.

Although some states require businesses to have this document in place, you're not legally required to have an Arkansas Operating Agreement in place to conduct business in Arkansas. We do recommend having one for your business nonetheless.

Receive a Personalized Operating Agreement when you select Incfile’s Gold or Platinum package

Other Arkansas LLC Types

Professional LLC

Professional Limited Liability Companies (PLLCs) are different from professional corporations in that they typically have licensing requirements applicable to certain fields, such as law and medicine. In order to form a PLLC, you may need a state license to practice.

Learn more about PLLC vs. LLC and which one is right for your business.

Foreign LLC

If your business is already operating in another state and expanding to Arkansas—or vice versa—you’ll need to form a Foreign LLC.

Learn more about Arkansas Foreign LLC registration.

Helpful Resources from the State of Arkansas

More Information in This Guide

You’ll find plenty more insight and guidance on the other pages of this guide, including:

How to Name Your Arkansas LLC

How to search the Arkansas business registry and find the right name. Includes information on naming rules, fictitious names, reserving an Arkansas LLC name and more.

Arkansas Registered Agents

How to appoint, change and search for Registered Agents. Also includes the rules they’re required to follow.

Arkansas LLC Fees and Requirements

How to understand the various fees you’ll need to pay and the state and federal requirements you’ll need to meet. Includes details of Employer Identification Numbers (EINs), state and federal business licenses, annual reports and more.

Arkansas Business Tax Rules

How to understand the various taxes you will need to pay to the state and federal governments. Includes details of state taxes such as sales and income, and federal taxes such as income and self-employment.

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