Forming an Arkansas LLC

(2025 Guide)

2025 LLC Guide

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How to Start an LLC in Arkansas 2025 Step-by-Step Guide

Discover how to start an LLC in Arkansas, our step-by-step guide. Learn the essential requirements and process to form your business today.

To establish an LLC in Arkansas, you need to submit the Articles of Organization to the Arkansas Secretary of State, which costs $45 and requires about 7 days for approval. The process involves five steps:

  • Choose an LLC Name
  • Select a Registered Agent
  • File Articles of Organization
  • Create an Operating Agreement
  • Get an EIN

If you prefer to handle the formation yourself, follow our free guide below. Alternatively, you can hire a service to manage it for you, such as Northwest Registered Agent.

(We recommend Northwest due to their competitive pricing, excellent customer support, and address privacy.) 

Need to save time?

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

How much does it cost to start an LLC in Arkansas?

The initial cost is $45, with an annual fee of $150.

What are these expenses for? The $45 fee is for filing the Articles of Organization, which officially creates your LLC. The $150 annual fee is for the Annual Franchise Tax Report, necessary to maintain your LLC’s good standing. For more details, see LLC Costs in Arkansas.

How long does it take to form an LLC in Arkansas?

If you file by mail, the process takes 2-3 weeks (plus mailing time). Filing online results in approval within 3-7 business days. For the latest updates, see How long does it take to get an LLC in Arkansas

Here are the steps to forming an LLC in Arkansas

1. Search Your LLC Name

Start by checking your desired LLC name for availability in your state.

This is crucial as no two businesses can share the same name within a state. First, compare your chosen name against existing businesses using the Arkansas Secretary of State’s Business Entity Search page. Also, acquaint yourself with state-specific LLC naming rules to ensure approval. For further details, see our guide on Arkansas LLC Name.

Note: 

Most people choose “LLC”.

2. Choose an Arkansas Registered Agent

Next, select a Registered Agent. This person or company accepts legal mail and state notices for your LLC.

You have three options: yourself, a friend or family member, or a Registered Agent Service.

The Agent must have a physical street address in Arkansas—PO Boxes are not permitted. Their name and address will appear on public records. For privacy, consider hiring a Registered Agent Service. We recommend Northwest Registered Agent, as they use their office address for your filings, keeping yours private. They’ll scan your LLC’s mail and upload it to your account. Northwest offers excellent customer service and is our trusted choice. Special offer: Hire Northwest to form your LLC ($39 + state fee) and enjoy a free year of Registered Agent service. (See our Northwest Registered Agent review for more details)

Special offer: 

Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.

(Read our Northwest Registered Agent review.)

3. File Arkansas LLC Certificate of Organization

To establish your LLC, file the Certificate of Organization with the Arkansas Secretary of State.

Note that this document was previously called the Articles of Organization until the name change in 2021. The fee for online filing is $45, a one-time cost to form your LLC. If you prefer to file yourself, consult our step-by-step guide: Arkansas LLC Certificate of Organization. Alternatively, hire a company to handle it for you. Need efficiency? Hire Northwest ($39 + state fee) or LegalZoom ($149 + state fee) to form your LLC. (Discover why Northwest ranks #1 in Northwest vs LegalZoom)

Need to save time? 

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

4. Create an LLC Operating Agreement

An LLC Operating Agreement complements your Articles of Organization. While the Articles create your LLC, the Operating Agreement outlines ownership.

Banks may require it to open an LLC account, and it’s beneficial in legal situations to show proper LLC management. We recommend every LLC have an Operating Agreement, even single-member LLCs. It’s an internal document, so you don’t need to file it with the state or IRS. Keep a copy with your business records. Download a free template below and learn to complete it with our Arkansas Operating Agreement video.

Download a free LLC Operating Agreement:

Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word

(What’s better? See Member-managed vs Manager-managed LLC)

5. Get an EIN for Your LLC

Next, obtain an Arkansas EIN Number from the IRS for your LLC.

The EIN, or Federal Tax ID Number, identifies your LLC for tax purposes, opens business bank accounts, and applies for licenses and permits. It’s free to get an EIN from the IRS. Online applications take 15 minutes, while mail or fax can take 1-3 months. US Citizens/Residents with an SSN or ITIN can apply online. Follow these steps: Apply for an EIN online. Non-US Residents cannot apply online but can do so by mail or fax. Follow these steps: How to get an EIN without an SSN or ITIN

What should I do once my LLC is approved?

Once your LLC is approved, there are a few more tasks to complete.

Open an LLC business bank account

It’s essential to set up a business bank account for your LLC. This simplifies accounting and helps maintain accurate financial records. Keeping your personal and business finances separate is crucial for personal liability protection.

Get business licenses and permits

Arkansas doesn’t require a state general business license. However, depending on your LLC’s location, you might need a local business license or permit. For instance, if you plan to open a daycare, you might need a specific license from your city or county. For more details, visit our Arkansas Business License page.

File your LLC Annual Franchise Tax Report

Every LLC in Arkansas must submit an Annual Franchise Tax Report each year to remain in good standing. The filing fee is $150 annually. The reports are due by May 1st each year. If your LLC was approved on February 15, 2025, your first report is due by May 1, 2026. You can file online or by mail, though online filing is recommended for ease. Follow our detailed guide here: Arkansas LLC Annual Franchise Tax Report.

Pay taxes

LLCs themselves don’t pay federal taxes; instead, the LLC Members pay taxes as part of their personal tax returns. A Single-Member LLC is taxed like a Sole Proprietorship, while a Multi-Member LLC is taxed like a Partnership. Alternatively, you can choose to have your LLC taxed as a C-Corporation or S-Corporation. Be aware of state and local income taxes, as well as sales tax. Discover more in Arkansas LLC Taxes.

Helpful Resources

How to Start an LLC in Arkansas FAQs

Can I start an LLC online in Arkansas?

Absolutely, you can file your LLC online. The fee for filing the Articles of Organization is $45. Once you submit your LLC online, it typically receives approval within 3-7 business days.

One major advantage of an LLC is the protection of your personal assets. This means that if your business faces a lawsuit, your personal assets—such as your home, cars, and bank accounts—are safeguarded. This protection covers all LLC owners, known as LLC Members, regardless of whether it’s a Single-Member or Multi-Member LLC. All members are shielded from business debts and liabilities. Such protection isn’t available with Sole Proprietorships or Partnerships, where owners are vulnerable in lawsuits. Consequently, Limited Liability Companies (LLCs) are a favored business structure. Another key benefit is LLC pass-through taxation, meaning the LLC doesn’t pay federal income taxes directly. Instead, profits “pass through” to the Members, who then pay taxes on their personal returns. State income taxes align with this federal tax treatment. For more details, see How are LLCs taxed.

Whether Arkansas is suitable for starting an LLC depends on your residence and business location. If you reside or conduct business in Arkansas, then it’s advisable to establish your LLC there. While some websites highlight tax benefits of certain states, these are irrelevant if they don’t align with your living and business state. For instance, forming an LLC in Delaware while living and operating in Arkansas means you’ll also have to register your Delaware LLC in Arkansas, incurring additional fees and still paying Arkansas taxes. This results in higher costs and complications without benefits. In short, if you live and do business in Arkansas, it’s a good state for starting a business. If not, it’s not ideal.

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