Start Your LLC In
Arkansas with One IBC

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Basic

$199

+ States Filing Fees

Form my LLC

02 weeks processing

Agent fee

Registered Address

Document filing with the Secretary of State

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Standard

$499

+ States Filing Fees

Form my LLC

05 days processing

Includes everything in basic package

Comprehensive name check

Preparation of Articles of Incorporation

Lifetime customer support (phone & email)

Federal Tax ID (EIN) Obtainment Service

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Recommended

Premium

$599

+ States Filing Fees

Form my LLC

01 day processing

Includes everything in standard package

2 hours of free tax consultation

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Key Points of Arkansas LLCs

Affordable Costs

Arkansas features low filing fees for LLC formation and a straightforward annual franchise tax, making it cost-effective.

Confidential Owner Information

Member details in annual reports are kept private and not available for public inspection, enhanced privacy protections for owners.

Support for Series LLCs

Arkansas allows businesses to segregate assets and liabilities into separate series for better risk management and flexibility.

Understanding Arkansas LLCs

An Arkansas LLC combines the liability protection of a corporation with the simplicity and flexibility of a partnership, making it a popular structure for low complexity but legal safety.

What is an Arkansas LLC?

An LLC in Arkansas provides limited liability to its members/managers, shielding personal assets from business liabilities, and allows either member-managed or manager-managed governance structures.

An Arkansas LLC offers several benefits, including:

Limited personal liability for business debts. Pass-through taxation so profits/losses flow to individual returns. Predictable annual franchise tax fee and reporting schedule.

Why choose an LLC in Arkansas?

Choosing an LLC in Arkansas gives you strong legal protections, simpler federal-and-state tax obligations, and a well-defined process for formation and ongoing compliance.

Key Benefits Include:

Privacy Protection

No Double Taxation

Business Credibility

Legal Environment

Tax Flexibility

Clear Guidelines

Pros and Cons of an LLC in Arkansas

Starting an Arkansas LLC: Benefits

An Arkansas LLC shields personal assets from business liabilities, supports tax benefits via pass-through treatment, and offers a formation process with clear legal steps.

Taxation of an Arkansas LLC

LLCs by default are taxed as pass-through entities: single-member LLCs like sole proprietorships, multi-member LLCs like partnerships. Arkansas also imposes a $150 annual franchise tax for LLCs.

Starting an Arkansas LLC: Drawbacks

Arkansas requires the annual report and franchise tax payment, which, if missed, can lead to penalties or loss of good standing. Some industries require extra licenses or permits; compliance deadlines are strict.

Who Can Form an LLC in Arkansas?

Any individual or business entity (including non-residents and foreign LLCs) may form or register to operate an LLC in Arkansas.

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Types of LLCs in Arkansas

Domestic LLC (Arkansas-based LLC)

A domestic LLC is one formed under Arkansas law, operating primarily within the state. It must comply with state formation, annual reporting, and franchise tax obligations.

Foreign LLC (Out-of-state LLC registering in Arkansas)

A foreign LLC is one formed elsewhere but registering to do business in Arkansas. It must file for foreign qualification, designate a registered agent in Arkansas, and meet Arkansas reporting and tax requirements.

Series LLC

Arkansas permits the formation of Series LLCs under state law. An Arkansas Series LLC allows for separate series within the same LLC, each with distinct assets, liabilities, and members, providing internal liability protection.

Professional LLC (PLLC)

Arkansas allows formation of professional limited liability companies (PLLCs) for licensed professionals, subject to relevant professional licensing boards.

How to Start an LLC in Arkansas

Choose a Business Name

Select a unique name that includes "LLC" or "L.L.C." and ensure it's distinguishable from existing entities in Arkansas. Use the Secretary of State's name search tool to verify availability.

Appoint a Registered Agent

Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in Arkansas.

File the Articles of Organization

Submit Form LLC to the Arkansas Secretary of State, providing LLC name, principal office address, and registered agent details.

Create an Operating Agreement

Though not required, it's recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.

Arkansas LLC Requirements

Age and Residency

Number of Members

Management Structure

Registered Agent and Office

Name Compliance

Arkansas LLC Application

To start an LLC in Arkansas, the key step is filing the Certificate of Organization (sometimes called Articles of Organization) with the Arkansas Secretary of State. This creates the business as a legal LLC.

Required Information

LLC name (must include “Limited Liability Company,” “LLC,” etc.) and unique in Arkansas.
Registered agent’s name and physical Arkansas address.
Business (principal) address.
Organizer(s) information (name & address).
Whether the LLC is member-managed or manager-managed.

Filing Options

Online via Arkansas Secretary of State's online portal.
By mail: submitting Certificate of Organization documents to SOS.
Expedited filing may be available (Arkansas offers certain quicker turnaround options).

Post-Filing Requirements

Operating Agreement: not required to file with the state but strongly recommended for governance.
Annual Franchise Tax Report & Annual Report: file every year to maintain active status.
Keep registered agent’s information current.

Arkansas LLC Taxation

Franchise Tax & Annual Report Fee

Every LLC in Arkansas must pay an annual franchise tax of US$150 and file the Annual Franchise Tax Report to stay compliant.

No State Corporate or Income Tax at LLC level (Default)

By default, LLCs are taxed via pass-through: owners report profits/losses on personal returns. There is no separate state corporate income tax for pass-through LLC entities.

Sales and Use Tax

If your LLC sells taxable goods or services in Arkansas, it must collect and remit sales tax; use tax may apply for purchases from out-of-state. Rate is state base + local.

Arkansas LLC Annual Filing (Franchise Tax Report / Annual Report)

What to File

An Arkansas LLC must file an Annual Franchise Tax Report (which includes the annual report) with the Secretary of State. Document includes LLC name, registered agent info, principal address, members/managers, and any changes.

Filing Deadlines

Annual reports and franchise tax are due May 1 of each year. Failure to file by May 1 leads to penalties.

Penalties & Consequences

If you fail to file the annual report or pay the franchise tax, LLC may incur late fees, interest, and risk being declared in default or forfeited, losing good legal standing.

Expanding Your Arkansas LLC

As your business grows, you may want to operate outside Arkansas. That means qualifying as a foreign LLC in each state and ensuring compliance with local laws and taxes in those states.

Registering a Foreign LLC in Arkansas

If your LLC was formed in another state but wants to do business in Arkansas, you must file a foreign qualification with the Arkansas Secretary of State, appoint a registered agent in Arkansas, and file annual franchise tax/report filings.

Doing Business in Other States

Operating in other states means registering there as foreign LLC, keeping up with those states’ reporting, licensing, tax obligations, and maintaining your Arkansas LLC’s good standing by filing its state requirements.