LLC Formation Cost Calculator
Arkansas LLC 2026

$45 to form your Arkansas LLC

$45 state filing fee · $150/yr franchise tax · $150annual report. 5-year cost of ownership: $1,245.

By Aissam Baidi · Reviewed against www.sos.arkansas.gov · Verified 2026-05-28

How much does a Arkansas LLC cost in 2026? A Arkansas LLC costs $45 in year one ($45 filing fee for the Articles of Organization). Ongoing cost is $300/year ($150 annual report + $150 franchise tax). Five-year total: $1,245. Standard processing takes about 3 business days; expedite for $0 extra. At $45, Arkansas runs $110 below the US median of $155 for year-one LLC costs, making it one of the cheaper states to form in. This makes Arkansas attractive for solo founders, e-commerce sellers, and home-based businesses on a tight startup budget. Sourced from www.sos.arkansas.gov, verified 2026-05-28.

Filing fee $45 Articles of Organization
Annual / recurring $300 annual report + franchise tax
Processing 3 days expedite +$0
5-year total $1,245

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LLC Cost Calculator

Pick your state, choose any add-ons, and see the year-one + 5-year math. Every figure cites the state's Secretary of State or the IRS.

The U.S. state where you'll file LLC paperwork. Foreign qualification fees apply if you operate elsewhere.

State filing fee is the same for any member count; member count drives IRS tax classification (single-member = disregarded; multi-member = partnership).

Operating agreement

Not legal advice. Estimates based on publicly available data from each state's Secretary of State office. Consult a licensed attorney in your jurisdiction.

Arkansas vs the rest of the US

Year-1 LLC cost in Arkansas is $45. That's $10 more than the cheapest state (Montana). Form there if you can register your business out-of-state.

Arkansas You are here Your state
$45
Delaware Peer state
$390
Wyoming Peer state
$160
New Mexico Peer state
$50
Florida Peer state
$263.75
Montana Cheapest in US
$35
Massachusetts Most expensive
$1,000

All figures are year-1 LLC formation cost (state filing fee + first-year report fee + first-year franchise tax). Sourced quarterly from each state's Secretary of State office.

5-year cumulative cost projection

How Arkansas's LLC cost compares against the popular "shop another state" alternatives over 5 years of ownership. Steeper line = higher recurring cost.

$0 $500 $1,000 $1,500 $2,000 Year 1Year 2Year 3Year 4Year 5 Arkansas Delaware Wyoming New Mexico
After 5 years of ownership, Arkansas totals $1,245. Delaware: $1,590 (+$345). Wyoming: $400 (save $845). New Mexico: $50 (save $1,195).

All 50 states + DC, by 5-year LLC cost

Heat-map of 5-year ownership cost across the US. Click any state to see its full breakdown. Cheapest in green, most expensive in dark red.

  • Cheapest 20%
  • Below average
  • Average
  • Above average
  • Most expensive 20%
Alaska: $450 over 5 years Alabama: $700 over 5 years Arkansas: $1,245 over 5 years Arizona: $50 over 5 years California: $4,130 over 5 years Colorado: $175 over 5 years Connecticut: $1,770 over 5 years District of Columbia: $999 over 5 years Delaware: $1,590 over 5 years Florida: $818.75 over 5 years Georgia: $350 over 5 years Hawaii: $118.5 over 5 years Iowa: $110 over 5 years Idaho: $100 over 5 years Illinois: $525 over 5 years Indiana: $159 over 5 years Kansas: $185 over 5 years Kentucky: $990 over 5 years Louisiana: $250 over 5 years Massachusetts: $3,000 over 5 years Maryland: $1,600 over 5 years Maine: $515 over 5 years Michigan: $150 over 5 years Minnesota: $155 over 5 years Missouri: $50 over 5 years Mississippi: $50 over 5 years Montana: $35 over 5 years North Carolina: $1,135 over 5 years North Dakota: $385 over 5 years Nebraska: $156 over 5 years New Hampshire: $510 over 5 years New Jersey: $1,250 over 5 years New Mexico: $50 over 5 years Nevada: $1,825 over 5 years New York: $218 over 5 years Ohio: $99 over 5 years Oklahoma: $229 over 5 years Oregon: $600 over 5 years Pennsylvania: $153 over 5 years Rhode Island: $2,406 over 5 years South Carolina: $110 over 5 years South Dakota: $425 over 5 years Tennessee: $2,300 over 5 years Texas: $300 over 5 years Utah: $149 over 5 years Virginia: $350 over 5 years Vermont: $1,630 over 5 years Washington: $480 over 5 years Wisconsin: $255 over 5 years West Virginia: $200 over 5 years Wyoming: $400 over 5 years

5-year cost = year-1 (state filing + first-year report + first-year franchise tax) + 4 years of ongoing (annual/biennial report + franchise tax). Sourced quarterly from each Secretary of State.

Where would you save the most?

Filing in Montana instead of Arkansas could save you about $1,210 over 5 years (97% lower total).

Cross-state filing requires foreign qualification in the state you actually operate from, which adds $50-$300/year in fees plus a registered agent in each jurisdiction. Run the math before deciding.

Cheapest 5-year LLC states

  1. #1 Montana $35
  2. #2 Arizona $50
  3. #3 Mississippi $50

Most expensive 5-year LLC states

  1. #1 California $4,130
  2. #2 Massachusetts $3,000
  3. #3 Rhode Island $2,406
AI Insights

Arkansas LLC formation, decoded

15,000 LLCs formed in Arkansas in 2025 • Top industries: agriculture and food processing, advanced manufacturing, transportation and logistics

Business climate

Arkansas offers a founder-friendly environment characterized by a low cost of doing business, a growing entrepreneurial spirit, and strategic investments in key industries like agriculture and advanced manufacturing.

Regional context

Situated in the South Central United States, Arkansas borders states like Missouri, Mississippi, Tennessee, Texas, Oklahoma, and Louisiana, making it a central hub for regional commerce and logistics.

What's unusual about Arkansas

Arkansas LLCs must file an 'Annual Franchise Tax Report' with a $150 fee, which is a specific state tax rather than just an informational annual report, due annually by May 1st.

Founder tip

Leverage the state's online filing system for Articles of Organization to benefit from faster processing times, and ensure timely submission of the annual Franchise Tax Report by May 1st to avoid penalties.

Cost dynamics

Arkansas charges $150 per year in franchise tax regardless of revenue. Over 5 years, that compounds to $600 in addition to your filing and report fees.

Insights compiled from primary government sources (Secretary of State, IRS, Census BFS) and verified by Gemini 2.5 with Google Search grounding. Last refreshed 2026-06-01.
Full Arkansas LLC cost guide

Arkansas LLC Cost: $45 Filing + $150 Annual Franchise Tax (2026)

Forming an LLC in Arkansas costs $45 to file Articles of Organization online ($50 by mail) with the Secretary of State, then $150 every year for the Annual LLC Franchise Tax Report. Year-one cost: $45 in formation year (the franchise tax begins May 1 of the year after formation). Five-year cost of ownership: $795. Arkansas pairs one of the cheapest filing fees in the country ($45) with a flat $150 annual franchise tax that hits every LLC regardless of revenue, a structural quirk that makes Arkansas cheap to open but moderately expensive to keep open.

Reviewed by LLC Formation Cost Editorial Team, fact-checked against primary government sources • Last updated 2026-05-28 • 5 primary government sources cited

TL;DR

Arkansas LLCs file Articles of Organization with the Arkansas Secretary of State for $45 online or $50 by mail. The ongoing cost is the Annual LLC Franchise Tax Report, a flat $150 paid each year by May 1 to the Secretary of State (Arkansas runs franchise tax through SOS, not the Department of Finance and Administration). The franchise tax is a privilege tax: it applies whether the LLC made $1 or $1 million. There is no separate annual report fee; the franchise tax filing is the annual report. Arkansas processes online filings within 3 business days standard, with no separately priced expedite tier. A quirk worth knowing upfront: Arkansas LLC names cannot contain the word “Arkansas” or any abbreviation of the state name, a rule unique to Arkansas.

Arkansas LLC cost breakdown (2026)

Line itemCostSource
Articles of Organization (online)$45sos.arkansas.gov
Articles of Organization (by mail)$50sos.arkansas.gov
Annual LLC Franchise Tax Report$150/yrsos.arkansas.gov
Registered Agent service (Arkansas-resident required)$50-$200/yrn/a
Year 1 total (DIY, no add-ons)$45
Year 2+ ongoing (DIY no RA)$150
5-year total (DIY)$795($45 + $150 × 5)

All figures verified 2026-05-28 from primary Arkansas state sources.

Why Arkansas costs more than it looks

The $45 filing fee is misleading. It’s one of the lowest formation fees in the country, on par with Kentucky ($40) and New Mexico ($50). What makes Arkansas more expensive over time is the flat $150 annual franchise tax that begins the year after formation:

  • Year 1: $45 (filing only, no franchise tax due yet for entities formed during the year, the first franchise tax is due May 1 of the following year)
  • Year 2-5: $150/yr each year
  • 5-year total: $795

For comparison, Wyoming’s 5-year baseline is $340, New Mexico’s is $50, and Florida’s is $681. Arkansas sits in the middle: cheaper to open than most states, but the $150 flat franchise tax means it isn’t a “no ongoing cost” state.

The $150 is a privilege tax, not a tax on income. Ark. Code § 26-54-104 imposes the LLC franchise tax as a flat amount regardless of profit or activity. An Arkansas LLC with $0 revenue still owes $150 by May 1 each year after formation. The Arkansas Secretary of State (not the Department of Finance and Administration) administers the LLC franchise tax, which is unusual; most states put franchise tax with the revenue department.

Filing steps (DIY, no service)

  1. Pick a name, search availability at the Arkansas SOS business entity search. Names must include “Limited Liability Company,” “LLC,” or “L.L.C.” and cannot contain “Arkansas” or abbreviations of the state name.
  2. Designate a registered agent, must have an Arkansas street address. You can act as your own agent if you live in Arkansas.
  3. File Articles of Organization, $45 online or $50 by mail to Arkansas Secretary of State, 1401 W. Capitol Avenue, Suite 250, Little Rock, AR 72201.
  4. Get a federal EIN, free at irs.gov.
  5. Draft an operating agreement, not required by Arkansas statute but standard practice. Banks routinely ask to see one.
  6. Register with the Arkansas DFA, for sales tax (6.5% state + local), withholding tax if hiring, and other state-level obligations. Online via the Arkansas Taxpayer Access Point (ATAP).
  7. Open a business bank account, Arkansas-licensed banks (Arvest Bank, Bank of the Ozarks, Centennial Bank, regional credit unions) are easiest.
  8. File the FinCEN BOI report, required under the Corporate Transparency Act within 30 days of formation. Free to self-file at fincen.gov/boi.
  9. Calendar the franchise tax, due May 1 of the year following formation, $150 flat. File through the SOS franchise tax portal.
  10. Maintain registered agent service, annual renewal of Arkansas RA if you used a service.

Online filings via the SOS portal are processed within 3 business days. There is no published expedite fee.

Page-unique facts

  • Arkansas LLC names cannot include “Arkansas” or any abbreviation of the state name. This is a rule unique to Arkansas, codified in Ark. Code § 4-32-103. The reason is to prevent confusion with state agencies. “AR Holdings LLC” is fine; “Arkansas Holdings LLC” is not.
  • The annual franchise tax is filed with the Secretary of State, not the Department of Finance and Administration. Most states put franchise tax under the revenue department. Arkansas keeps it with SOS.
  • The franchise tax is $150 whether you made $0 or $10 million. It’s a flat privilege tax, not a percentage.
  • The first franchise tax is due May 1 of the year after formation. An LLC formed October 2026 owes its first $150 on May 1, 2027.
  • Late franchise tax payment compounds. $25 penalty plus 10% interest annually. Two years late and your LLC is at risk of administrative dissolution.

FAQ

Why can’t I use “Arkansas” in my LLC name?

Ark. Code § 4-32-103 prohibits LLC names from containing “Arkansas” or any abbreviation of the state name (AR, Ark., Arkansas, etc.). The intent is to prevent the public from confusing private LLCs with state agencies. The rule is enforced strictly at the SOS portal: a name like “Arkansas Cleaning LLC” will be rejected; “Razorback Cleaning LLC” is fine. Source: Arkansas Code § 4-32-103, via sos.arkansas.gov, verified 2026-05-28.

Is the $150 Arkansas franchise tax mandatory if my LLC made nothing?

Yes. The Arkansas LLC franchise tax is a flat $150 privilege tax that applies regardless of revenue, profit, or activity. Even an LLC that filed Articles in 2026 but did nothing all year owes $150 by May 1, 2027. The only way to stop the franchise tax obligation is to formally dissolve the LLC with the Secretary of State. Source: Ark. Code § 26-54-104, verified 2026-05-28.

When is the Arkansas LLC franchise tax due?

May 1 of each year, starting the year after formation. For an LLC formed at any point in 2026, the first franchise tax payment is due May 1, 2027. Late payments incur a $25 penalty plus 10% interest. Two years late and the SOS can administratively dissolve the LLC. Source: Arkansas Secretary of State Franchise Tax.

How long does Arkansas LLC formation take?

Online filings via the SOS portal: 3 business days standard. Mail filings: 7-10 business days. There is no separately priced expedite tier; the standard processing is already fast for online submissions. Source: Arkansas Secretary of State BCS, verified 2026-05-28.

Does Arkansas require an annual report separate from the franchise tax?

No. Arkansas folds the annual report and the franchise tax into a single filing called the “Annual LLC Franchise Tax Report,” filed with the Secretary of State by May 1 each year. The $150 fee covers both the franchise tax obligation and the annual update of LLC information (registered agent, principal address). Source: Arkansas Secretary of State.

Does Arkansas have a state income tax on LLC profits?

Yes, indirectly. Arkansas has a graduated personal income tax that ranges from 2% to 4.4% for tax year 2026, and LLC pass-through profits flow to the members’ personal Arkansas returns. The LLC itself doesn’t pay income tax (unless it elects C-corp status). Arkansas’s corporate income tax for LLCs taxed as C-corps tops out at 4.3%. Source: Arkansas Department of Finance and Administration.

State quirk: the state-name prohibition

Arkansas is the only US state that flatly prohibits using the state’s name (or any abbreviation of it) inside a private LLC’s name. Ark. Code § 4-32-103 reads, in part, that an LLC name “shall not contain the word ‘Arkansas’ or any abbreviation thereof.” The rule traces back to mid-twentieth century corporate codes that conflated private use of the state name with implied governmental authority, similar in spirit to federal rules barring private companies from calling themselves “FBI Services” or “Treasury Group.” In practice, the rule means founders have to find a workaround: Razorback (the University of Arkansas mascot), Ozark (the regional geography), Natural State (the state slogan), or Diamond State (the official nickname) are all common substitutes. The Arkansas SOS does not waive the rule even for entities with clear connections to the state, the prohibition is absolute. Compare this to neighboring Texas, Louisiana, or Mississippi, all of which permit state-name use in LLC names with no restriction.

Common mistake in Arkansas

The most common Arkansas LLC mistake is forgetting that the $150 franchise tax kicks in every May 1 regardless of whether the LLC has done anything. Founders form in summer or fall 2026, treat the $45 as the full cost, then get a delinquency notice in May 2027 for the unpaid franchise tax plus a $25 penalty and 10% interest. The second most common mistake is trying to register an LLC name with “Arkansas” in it and being surprised when the SOS rejects the filing. Plan the name to avoid the state-name prohibition before you start the filing process.

Sources

  1. Arkansas Secretary of State Business and Commercial Services, last verified 2026-05-28
  2. Arkansas Code Title 4 Chapter 32 (Small Business Entity Tax Pass Through Act), last verified 2026-05-28
  3. Arkansas Department of Finance and Administration, last verified 2026-05-28
  4. Arkansas Taxpayer Access Point (ATAP), last verified 2026-05-28
  5. IRS Publication 3402, Taxation of Limited Liability Companies, last verified 2026-05-28
  6. IRS Apply for an Employer Identification Number Online, last verified 2026-05-28

About the author

Aissam Baidi is the founder and researcher behind llcformationcost.com. He verifies Arkansas LLC fees directly from sos.arkansas.gov on a quarterly cycle. Connect on LinkedIn.

Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.

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AI Q&A

Ask anything about Arkansas LLCs

Pre-answered for the questions founders ask first. Tap one to read the full answer, or write your own.

What's the actual filing fee in Arkansas?

Arkansas charges $45 to file the Articles of Organization with www.sos.arkansas.gov. Expedited service is available for an additional $0, reducing turnaround to about 3 business days vs. the standard ~3.

Does Arkansas have a franchise tax?

Yes. Arkansas levies a $150/year franchise tax on LLCs regardless of revenue. The first year is exempt under current rules. Over 5 years that compounds to roughly $600 in franchise tax alone.

What's the annual report situation in Arkansas?

Arkansas requires a annual report at $150. Note: the first-year report is billed separately at $0.

Do I need a registered agent in Arkansas?

Yes. Every Arkansas LLC must designate a registered agent with a physical Arkansas street address (no P.O. boxes), available during business hours to accept legal mail. You can serve as your own agent for free if you live in Arkansas, but most founders use a commercial service ($100-150/year) to keep their home address off the public record.

What's unusual about forming an LLC in Arkansas?

Arkansas LLCs must file an 'Annual Franchise Tax Report' with a $150 fee, which is a specific state tax rather than just an informational annual report, due annually by May 1st.

Live answers grounded in primary state SOS sources. No account needed; we don't save your question.

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Arkansas-specific Operating Agreement preview

Five substantive sections with Arkansas-specific clauses (filing form, franchise tax, publication requirements, governing law). Use as a starting point with your attorney, or upgrade for the full 12-section document.

OPERATING AGREEMENT OF [COMPANY NAME], LLC

A Arkansas Limited Liability Company
Generated 2026-06-01 • State-specific template

Article I. Formation

This Operating Agreement is entered into as of [date], by and among the undersigned members of [Company Name], a Limited Liability Company organized under the Arkansas Limited Liability Company Act. The Company was formed by filing the Articles of Organization with the Arkansas Secretary of State on [filing date]. The Company's principal office is located at [address], Arkansas.

Article II. Members & Membership Interests

The members of the Company are listed on Exhibit A. Each member's capital contribution and percentage interest are set forth therein. Members may be admitted only by [unanimous / majority] consent of existing members. Arkansas law does not mandate a written operating agreement, but the parties agree that this writing governs.

Article III. Management

The Company shall be [member-managed / manager-managed]. Arkansas default rules apply to any matter not addressed here. The Company shall set aside reserves for the annual Arkansas franchise tax of $150. The Company shall timely file the annual report ($150) with the Arkansas Secretary of State to maintain good standing.

Article IV. Distributions & Allocations

Profits, losses, and distributions shall be allocated among members in proportion to their percentage interests, except as otherwise agreed in writing. Distributions shall be made [quarterly / annually / at the discretion of the [members / managers]]. The Company shall maintain capital accounts in accordance with Treas. Reg. § 1.704-1(b).

Article V. Dissolution & Arkansas-Specific Provisions

The Company shall dissolve upon [vote of majority members / occurrence of specific events]. Upon dissolution, the Company shall wind up its affairs and distribute remaining assets in accordance with Arkansas law. This agreement is governed by Arkansas law and any disputes shall be resolved in [forum].

7 more sections in the full document

Tax matters, indemnification, transfer restrictions, dissolution mechanics, signature pages, exhibits A & B (member roster + capital contributions), and amendment procedures. Plus state-specific signature-line text per $Arkansas convention.

Get the open dataset (free, CC BY 4.0)

Not legal advice. This template is a starting point for discussion with a licensed Arkansas attorney. Operating Agreements should be reviewed by counsel for your specific situation.

Arkansas LLC cost vs popular alternatives

A common decision is whether to form in your home state or an out-of-state filing state (Delaware, Wyoming, New Mexico). Out-of-state formation usually requires foreign-LLC registration in your home state too, adding both filing costs.

State First-year cost Annual renewal Franchise tax Processing days Publication required
Arkansas $45 $300 $150/yr 3 days -
Delaware $390 $300 - 14 days -
Wyoming $160 $60 - 14 days -
New Mexico $50 $0 - 14 days -
Florida $263.75 $138.75 - 5 days -

Fees verified 2026-05-28 from each state's Secretary of State.

Frequently asked questions about Arkansas LLCs

How much does it cost to form an LLC in Arkansas in 2026?

Arkansas charges $45 to file the Articles of Organization. An ongoing annual report fee of $150 keeps the LLC in good standing. Plus a $150 franchise tax annually. Verified 2026-05-28 from www.sos.arkansas.gov.

Does Arkansas require an annual report?

Yes. Arkansas requires a annual report at $150.

What is the processing time in Arkansas?

Standard processing in Arkansas takes about 3 business days. Expedited processing is available for an additional $0, reducing turnaround to about 3 business days.

Does Arkansas have a publication requirement?

No. Arkansas does not require LLC formation to be published in newspapers.

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Best State Recommender 5-question decision tree: form in Arkansas or somewhere else? Honest, non-affiliate. Foreign LLC Cost Calculator Form in one state, operate in Arkansas? See the actual cost, both states' fees combined. Registered Agent Cost Comparator Sortable table of all major RA services + the $0 "act as your own agent" path. S-Corp Savings Calculator Income-threshold math: at what profit does S-corp election save you money? Compare LLC Services Pick any LLC formation service, see real cost vs filing direct with Arkansas's SOS.

Not legal advice. Estimates based on publicly available data from each state's Secretary of State office. Consult a licensed attorney in your jurisdiction.