What does it cost to create an LLC in Arkansas?
- Arkansas Secretary of State charges $45 to file Articles of Organization online and $50 for filing by mail.
- Reserve your LLC name with Arkansas SOS for $25 by mail, or $22.50 online.
- Arkansas LLCs must also pay $150 annually in franchise taxes to the state.
While filing on your own can often be the most cost-effective option, completing all forms and filing them yourself can be difficult. You can also hire a lawyer, which will cost you hundreds to thousands of dollars.
1. Select a name for your LLC
Arkansas law requires that LLCs must include the words “Limited Liability Company,” the “Limited Company” or the abbreviation L.L.C., “L.C.,” or “LLC.” The term “Limited” can be abbreviated to “Ltd.” and “Company” may be abbreviated to “Co.”
Professional services companies must use the words “Professional Limited Liability Company,” or “Professional Limited Company,” as well as the abbreviations “PLLC,” “PLLC,” and “PLC.” Except for a deceased member, the LLC name cannot include the name of any person. The abbreviations for “Limited” and “Company” are “Ltd” or “Co.”
The name of your LLC must be distinct from other business names already filed with the Arkansas Secretary. You can search the Arkansas Secretary Of State business name database to verify names are available.
A request for a limited liability company name reservation may be filed with the Arkansas Secretary-of-State. An available name can be reserved for 120 calendar days. You can either complete the form online or mail it in. If you file by mail, the filing fee is $25.50. Online filings are $22.50.
2. Designate a registered agent
Each Arkansas LLC must have an agent to serve process in the State. This person or entity agrees to accept legal documents on behalf of the LLC if sued. Before being designated, the agent must agree to receive service of process for the limited liability company. A registered agent can be either (1) a resident of Arkansas or (2) a registered business entity.
3. Register Articles of Organization
An Arkansas LLC can be created by filing Articles Of Organization (Form L-01) with Arkansas Secretary of State.
Articles must contain:
- Name of the LLC
- The address of the LLC
- The name and address of LLC’s registered agent
- A statement indicating whether the LLC will have a manager.
- Signature of the organizer
Online filing costs $45 and paper copies $50 respectively.
4. Make an Operating Agreement
Although an LLC operating agreement may not be required in Arkansas, it is highly recommended. This document is internal and outlines the operation of your LLC. This document outlines the rights and responsibilities for members and managers and how the LLC is managed. This document can help you to protect your limited liability and show that your LLC is a separate business entity. Your LLC’s operation will be governed by the state LLC law, if there is no operating agreement.
5. Get an EIN
Your LLC must have its own IRS Employer Identification number (EIN) if there are more than one member. You must apply for an EIN if you create a single-member LLC. An online application can be made to the IRS Website for an EIN. There is no filing fee.
6. Annual State Tax Obligations
All LLCs, including foreign LLCs, must pay at least $150 in tax each year to the Arkansas Secretary-of-State. The Arkansas Secretary of State must also receive annual franchise tax reports. The Arkansas Secretary Of State website allows you to file your annual franchise tax report online. You can also download a report form. Each year, the franchise tax report and $150 tax payment must be submitted by May 1. Late reports can result in severe penalties.
In certain cases, you may need to register with the Arkansas Department of Finance and Administration. You can register online using the Arkansas Taxpayer access point (ATAP), or on paper using Form AR-1R, combined business tax registration form.
How Much Does it Cost for a Foreign LLC in Arkansas?
To do business in Arkansas, LLCs must be registered with the Arkansas Secretary Of State. For service of process in Arkansas, foreign LLCs must appoint an agent registered for service. You must file an Application to Certificate of Registration of Foreign Limited Liability Company. You can either complete the application online, or send it by post. The Secretary of State must also receive a certificate or similar document from LLC’s home states. Online applications are subject to a $270 filing fee, while paper applications can be filed via mail for $300.
Check the Arkansas Secretary Of State’s business names database to ensure that the LLC’s name can be found in Arkansas before you file. The foreign LLC can use a designated name to transact in Arkansas if the name isn’t available. It must submit to the Arkansas Secretary Of State a copy of the resolution adopted by its members.