How Much Does an LLC Cost in Arkansas - Fees & Taxes in AR
To form a limited liability company, you need to file documents called Articles of Organization with the Secretary of State. In Arkansas, this procedure will cost you $45, but that is not the only expense required.
In this article, we'll take a look at the total LLC in Arkansas cost, including not only the filing fees but also other billable processes during the forming and setting up of a business.
How Much Does an LLC Cost in Arkansas?
Before filing the Articles of Organization with the Secretary of State, the organizer needs to have complete information on the future firm: legal name, registered agent's address, and more.
To get this information, the owner has to pay Arkansas LLC fees. For example, the registered agent will take a charge for their services.
If you're wondering "How much is an LLC in Arkansas?", then boldly add the extra expense of a few tens or hundreds of dollars to the cost of filing the incorporation documents.
Arkansas LLC Online Filing Fee: $45
Arkansas limited liability company registration is accomplished by filing a Certificate of Organization on Form LL-01. The procedure can be done online.
- Registration Fee: $45;
- Payment methods: MasterCard, Visa, Discover, American Express;
- Processing time: up to 3 weeks.
Note! The organizer may mail documents to the Arkansas Secretary of State 1401 W. Capital Ave. Suite 250 Little Rock, AR 72201. The fee will be $5 more which means you will pay the Arkansas LLC filing fee of $50.
Arkansas Annual Franchise Tax Report Fee: $150
According to the Arkansas Franchise Tax Act of 1979, all limited liability companies in the state are required to pay an annual franchise tax report fee.
- Arkansas LLC annual fee: $150;
- How to file: through the annual report filing system;
- Deadline: By May 2.
There will be an additional processing fee of $5 or more if you pay by credit card; for e-check, the charge will be $3. There are no processing fees if submitted by mail. In that case, you only need to cover the tax amount.
What happens if you fail to pay the tax?
- Additional fees, penalties, or interest will be imposed;
- The state may terminate your right to do business in the state.
Note! Even if the LLC operation has been terminated but not dissolved/revoked, franchise tax will accrue.
Registered agent (Agent for Service of Process, Resident Agent) Fee
Any LLC owner can become his/her own registered agent, and the upside of that is you don't have to pay yourself a salary. But in this case, the registered address becomes public, and the business owner will have to do a lot of routine work.
By choosing a commercial registered agent, the owner will get more business benefits (with the exception of having to pay LLC annual Arkansas fees).
- Cost of service: from $49 and can run up to several hundred dollars per year;
- Where to find an agent? Research independently or explore reviews of companies that provide resident agent services in the state.
Note! Any business in Arkansas is required to appoint a registered agent. Without meeting this requirement, the Secretary cannot approve the company formation documents.
Registered Office
Every business in Arkansas is obliged not only to appoint an agent for procedural services but also to include the address of the registered office in the Articles of Organization.
When appointing a commercial registered agent, you will be provided with the address of the registered office located in the state.
Business Income Tax
Virtually all LLC owners pay income tax on the funds they receive from their business. And the rate will depend primarily on the amount of income.
The tax rates current for 2022 are:
- Income up to $4,999 - 0%;
- Income up to $9,999 - 2%;
- Income up to $14,299 - 3%;
- Income up to $2,599 - 3.4%;
- Income up to $84500 - 4.9%.
Note! Arkansas also has a one-time tax deduction as well as tax credits, which are also tied to net income.
Cost to Form a Foreign LLC in Arkansas
If you want to do business in Arkansas but this is not your home state, you will need to form a Foreign LLC. But first, it's important to find and appoint a local registered agent and then:
- Obtain a certificate of formation in your home state. This document is valid in Arkansas for 30 days from the receipt date;
- Apply for registration with the Secretary of State.
Note! Entrepreneurs do not need to file Articles of Organization with the Secretary of State, as local firms are required to do. Instead, they are obliged to register a foreign LLC.
- Registration options: through the Corporations Online Filing System or by mail to Arkansas Secretary of State Business & Commercial Services 1401 W. Capitol Suite 250 Little Rock, AR 72201;
- Price of a Foreign LLC in Arkansas formation: $270 for online filing and $300 when submitted by mail.
Cost to Form a Series LLC in Arkansas
A series LLC is a type of entity in which assets are distributed among the companies within a group. In Arkansas, Series LLCs are those limited liability companies that have one or more protected entities.
You can create a Series LLC by filing a Certificate of Organization for SLLC. The forms are available on the Secretary's website.
- Series LLC price Arkansas: $50 state fee + $50 for each unit;
- Application processing time: up to 3 days.
Note! You can only send documents to create an SLLC by mail. Take the mailing time into account.
Cost to form a PLLC (Professional LLC) in Arkansas
Licensed specialists can form a professional limited liability company (physicians, architects, etc).
The requirements for registering this type of business are not much different from registering for a regular LLC. You need to choose a name, appoint an agent, fill out the foundation documents, and file them.
Cost to register LLC in Arkansas for professionals: $45 online, $50 by mail.
Business License Renewal Fee
Arkansas does not require owners to have business licenses in order to be eligible to operate in the state. However, these requirements may exist at the local level.
For example, in Fayetteville, all businesses operating within the city limits need to obtain a business license no later than 60 days after the establishment date. It is required to be renewed each year by Oct. 31, and the LLC cost in Arkansas for renewal is $15.
Other LLC Filing Costs
Below, we will tell you what additional costs may be necessary for you to include.
LLC Name Reservation
Reserving a name for a company has to be done properly so that it won't be rejected for non-compliance. That's why the state of Arkansas suggests researching guidelines for name availability.
To reserve a name in Arkansas, file Form LLC-05. Note that credit card payments are not accepted for this service, but you can do it through an e-check or an account on the Secretary of State's website.
- Reservation fee: online - $22.50, by mail - $25;
- Duration of reservation: 120 days.
Foreign LLC Name Registration
There are also requirements to reserve a Foreign LLC Name. First, you will need to check it for availability.
Cost: $22.50 online, $25 by mail.
Doing Business As (DBA)
You can use a DBA name in your marketing efforts or for audience engagement. But before you are eligible to use it, go through the registration process.
You can do this on the Secretary of State's website in the Forms Fees/Records Requests section. However, name reservations should be done not only at the state but also at the county level.
Arkansas LLC price DBA: $22.50 online, $25 by mail.
Certified Document Copies
There are a number of ways to order certified copies of the formation documents in Arkansas:
- Online. Processing time will be up to 48 hours from the time the request is sent. The cost of the service is $5 + $0.5 per page;
- By mail. Time of processing is up to 48 hours + mail time. The service costs $5.00 + $0.50 per page.
Certificate of Good Standing (Existence, Status, Legal Existence, Certificate of Fact)
If your business meets all the requirements and meets the deadlines, you can request a Certificate of Good Standing from the state.
The inquiry can be submitted online, and the cost is $25.
Foreign LLC Fictitious Name
To reserve a Foreign LLC Fictitious Name, the Secretary of State may request an F-18 form sent online or by mail. In this case, LLC fees in Arkansas will be $22.5/online or $25/mail submission.