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The yearly bill is the part to plan for in Arkansas. The Certificate of Organization (form LL-01) costs $45 online or $50 on paper. Then a franchise tax report is due every May 1, and every LLC pays $150 with it. Our Arkansas business guide covers searching records.
What do you file to create the LLC?
Two filings go together. The Secretary of State's LLC forms and fees page lists:
| Filing | Online | Paper |
|---|---|---|
| Certificate of Organization, LL-01 | $45 | $50 |
| Franchise Tax Registration, used with LL-01 | No fee | No fee |
File online by credit card, or print the PDF and mail or deliver it to the Business and Commercial Services office in Little Rock. The state says it completes most filings within two business days of receipt. The online system sits on the state's portal at ark.org.
How should you pick the name?
The Secretary of State says a name is not guaranteed until the form is file marked. Having a name issued also does not necessarily give you the exclusive right to use it. Search first with our name availability guide.
If you need time, application RN-06 reserves an LLC name for 120 days at $25 on paper or $22.50 online. LLCs may renew one time. The form cites A.C.A. 4-38-201. See the name reservation guide.
Which registered agent do you need?
Arkansas wants a street address in Arkansas where the agent can be found. The state's FAQ on corporations says a post office box or mail drop may not be used as the agent address. We explain the rules on the Arkansas registered agent page.
What is the franchise tax and who pays it?
The Franchise Tax Act (A.C.A. 26-54-101) makes corporations, banks and LLCs registered in Arkansas pay an annual tax. The LLC line on the report schedule is $150. The state's LLC report form says plainly that all limited liability companies pay $150, due on or before May 1, with penalty and interest after that date.
Some details to know:
- You can file the report online and pay by card, with a $5 processing fee. Mail has no fee.
- The report asks for the registered agent, the principal office in Arkansas, and whether members or managers run the LLC.
- Late or unpaid tax can bring penalties, interest and revocation.
- Revocation does not stop the clock. The tax keeps accruing until the business is dissolved, withdrawn or merged.
- If the tax is not paid, the state bars any other filing with the office. You cannot make other filings until you catch up.
That last point is why you should never let the report slide.
How long until a payment shows up?
The state says annual reports are generally processed in one to two weeks, and the record is updated nightly. File early enough that a bank or buyer who checks your standing in May sees a paid report. If someone asks for proof, the Secretary of State issues a Certificate of Good Standing, and a certificate of existence that shows basic data and tax status.
Who is named on the paperwork?
At least one individual must be on file with the Secretary of State, so that it can collect the tax. Owners are not listed in the state's records. Our operating agreement guide explains where ownership is recorded instead.
What comes after approval?
Get an EIN (how to get an EIN), sign the operating agreement, and open a bank account. Put the May 1 date on a calendar. The state's report page is the place to pay.
Forming an Arkansas LLC while you live somewhere else is allowed. Read the non-resident LLC guide first. If you are comparing neighbours, see Missouri, Tennessee and Mississippi.
The start an LLC form takes your details when you are ready.
After approval, check the rules in our Arkansas business license guide.