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To start an LLC in Arkansas, file a certificate of organization with the Secretary of State (SOS), appoint an Arkansas registered agent, and plan for the state’s annual franchise tax. Forming the LLC is only one part of starting a business: Your activity may also require state tax registration, professional or industry licenses, and city or county approvals.
Key takeaways
- Confirm your Arkansas LLC name is distinguishable, but reserve it only if you need extra time.
- Choose an Arkansas registered agent and keep the agent’s information current.
- File Form LL-01 online for $45 or by paper for $50, then monitor processing.
- Create an operating agreement, obtain an EIN when your tax situation requires one, and check licenses and tax registrations for your activity.
- Plan for the $150 annual franchise tax due May 1 of the year following formation and each year after that.
Step 1: Choose a name for your Arkansas LLC
Before you file, make sure the name you want meets Arkansas' naming rules and is available for registration.
Your LLC’s name must:
- Be distinguishable on the Secretary of State’s records from other business entity names.
- Include a designator: "limited liability company," "limited company," or an abbreviation such as "LLC," "L.L.C.," "LC," or "L.C." ("Limited" can shorten to "Ltd." and "company" to "Co.").
If the LLC will provide a professional service, the current certificate of organization form requires the appropriate professional designator and limits the use of a nonmember’s name. Other restricted-word or agency-approval rules can apply, so check the Secretary of State’s current name-availability guidelines before filing.
Once you’ve found your preferred LLC name, check availability using the Secretary of State's business entity search tool, or LegalZoom's Arkansas business name search tool below. The online database only shows what's currently on file, so some owners also call the Business and Commercial Services Division at (501) 682-3409 for guidance on restricted words or close-name conflicts an automated search might miss.
Free Arkansas Business Name Check
Use our free name check tool to search the Arkansas Secretary of State database and see if your business name is available.
By clicking "Check Availability," I agree to LegalZoom's Terms of Use. This search is a preliminary check of state databases and does not include variations or trademarks. Results do not guarantee name availability or compliance with legal requirements.
Should you reserve your Arkansas LLC name before filing?
If you’ve decided on an available name for your Arkansas LLC but aren’t quite ready to file your certificate of organization, reservation is optional. Just file an application for reservation of entity name with the Business and Commercial Services Division, downloadable from the LLC forms page. If you're ready to file your certificate of organization now, skip it and register your name directly through that filing.
Should you register a DBA?
If you’re planning to operate under a different name than the one you registered with, you'll need a DBA (doing business as): a trade name registration filed with the Business and Commercial Services Division using Form DN-18, for $22.50 online or $25 by mail. This is a separate filing and doesn't replace your certificate of organization. See LegalZoom's guide to filing a DBA in Arkansas.
Step 2: Appoint a registered agent in Arkansas
A registered agent receives legal paperwork, tax notices, and state correspondence on your LLC's behalf, and Arkansas law requires every LLC to have one. The choice of registered agent also affects your privacy, since the agent's address becomes part of the public record.
Both commercial and noncommercial registered agents can satisfy the state’s requirements, but they work in slightly different ways.
- Commercial registered agent: Has filed a Commercial Registered Agent Listing Statement and appears in the state's commercial registry, so it's easy to verify their legitimacy.
- Noncommercial registered agent: Anyone you appoint who hasn't filed that statement (you, an attorney, or a company officer). Their name and street address go directly on your certificate of organization.
Both types need an Arkansas street address where the registered agent is located and can receive service of process and other official communications.
Confirm your agent's agreement before filing, and name your agent directly on the certificate of organization (Form LL-01) when you file. To change agents after formation, file the current Notice of Change of Registered Agent. The Secretary of State’s LLC fee schedule currently lists this filing as no fee.
Can you be your own registered agent in Arkansas?
Yes, if you have an Arkansas street address and are available to receive service of process and official communications there. The registered agent’s name and address appear in the public record, so some owners use a commercial service for privacy and continuity.
How do you appoint a registered agent for an Arkansas LLC?
Name your agent directly on the certificate of organization (Form LL-01) when you file. There's no separate appointment form. Confirm your agent's agreement before filing so the paperwork doesn't stall. To change agents after formation, file the current Notice of Change of Registered Agent. The Secretary of State’s LLC fee schedule currently lists this filing as no fee.
Step 3: File your Arkansas certificate of organization
Once you've chosen a name and registered agent, you're ready to officially form your LLC. Arkansas uses Form LL-01, the Certificate of Organization, to establish your business with the Secretary of State. You’ll need to provide the following information when filling out the form:
- Your LLC's full legal name, including the required designator
- Your principal office address (a real street address)
- Your registered agent's full legal name and Arkansas street address (or registry name, for commercial agents)
- The name and address of at least one organizer (who signs the certificate)
- The name and title of at least one officer for franchise-tax purposes
The current form also includes a franchise-tax contact section. Complete every required field and sign the form before submitting it.
You can file online or by mail, depending on your preferences. However, filing by mail or in person is typically more expensive than filing online.
- Online: Use the Corporations Online Filing System. Find the Domestic Limited Liability Company section, select Form LL-01, complete it, and pay the $45 fee by credit card.
- By mail or in person: Download Form LL-01, and send it with a $50 check or money order payable to "Arkansas Secretary of State" to Business and Commercial Services Division, 1401 W. Capitol Avenue, Suite 250, Little Rock, AR 72201. You can also deliver in person during business hours.
Check the Secretary of State’s current processing notice if your filing is time-sensitive; turnaround estimates can change.
Step 4: Create an Arkansas LLC operating agreement
Arkansas doesn’t require you to file an operating agreement with the SOS. But creating one when you create your certificate of organization can still be a good idea, even if the document is just for your use. An operating agreement gives you a place to document ownership, management, voting, and other rules for running the company.
Your operating agreement should include the following information:
- Each member's ownership percentage and capital contribution
- How profits and losses get allocated and distributed
- Management structure and who holds decision-making authority
- Voting rights and procedures
- Rules for admitting new members or handling a member's exit
- Dissolution procedures
Arkansas Code § 4-38-105 gives LLCs wide latitude to customize most of these terms.
Step 5: Get an EIN from the IRS for your Arkansas LLC
An employer identification number (EIN) is a federal tax ID. Multi-member LLCs, LLCs with employees, and LLCs that elect corporate tax treatment generally need one. You can apply directly through the IRS or let LegalZoom file the application on your behalf.
Save your EIN confirmation letter right away. The IRS won't reissue the original if you lose it.
Building a business is enough work as it is. We'll help you start your LLC with confidence.
Step 6: Register for Arkansas taxes, licenses, and permits
Arkansas has no general statewide business license. Requirements depend on your industry and location: Some come from state agencies, others from your city or county, and regulated fields (healthcare, construction, food service, childcare) have their own licensing boards. Check with your city or county clerk and any relevant state board. For a full breakdown, see LegalZoom's guide to Arkansas business license requirements.
What is the Arkansas sales and use tax rate for LLCs?
Arkansas’ state sales and use tax rate is 6.5%, before applicable local and special rates. Whether your business must collect tax depends on the activity and other facts, so check the current Arkansas Department of Finance and Administration guidance for specific information, and use the Department of Finance and Administration’s current rate lookup for applicable city, county, and special rates.
Do you need to register with the Arkansas Department of Finance and Administration?
If your activity is subject to Arkansas sales or gross-receipts tax, register through the Arkansas Taxpayer Access Point (ATAP) before the applicable taxable activity begins.
Every Arkansas LLC must pay a $150 franchise tax along with its franchise tax report by May 1 annually. This can be completed online through the SOS filing system.
Arkansas LLC filing fees and total startup costs
The domestic formation filing costs $45 online or $50 on paper. The $150 annual franchise tax is due by May 1 of the year following formation, with optional and conditional costs added for name reservations, commercial registered-agent service, fictitious names, licenses, and tax registrations.
| Cost | Amount |
|---|---|
| Certificate of Organization, online (Form LL-01) | $45 |
| Certificate of Organization, mail or in person | $50 |
| Annual Franchise Tax Report | $150; due May 1 annually |
Confirm these figures with the Business and Commercial Services Division, since the Arkansas General Assembly can change fees.
What optional Arkansas LLC costs should you budget for?
Beyond the required fees, there are a few costs you may want to build into your budget.
- Name reservation ($22.50-$25): Worth it if you're not ready to file but want to lock in a name for the 120-day window.
- Commercial registered agent service: Annual cost varies by provider and can keep you from having to use your home address as your registered-agent address.
- Operating agreement drafting: Free to DIY, but many multi-member LLCs pay for professional drafting.
- DBA / trade name registration ($22.50-$25): Only needed if you're operating under a different name.
- Local licenses and professional permits: Separate fees apply outside the Secretary of State's process.
The risks of forming an Arkansas LLC yourself
Forming an Arkansas LLC yourself can be straightforward, but the state has a few requirements that are easy to miss if you're relying on generic LLC guidance. These are some of the main DIY risks to keep in mind:
- Using the wrong current form, statute citation, or filing fee.
- Treating the LLC filing as a substitute for tax, professional, industry, city, or county authorization.
- Missing the annual franchise-tax deadline or failing to keep the registered agent and public record current.
- Treating a name search, operating agreement, or EIN as more legally protective or universally required than it is.
How to start your Arkansas LLC with LegalZoom
If you’re thinking of starting an LLC in Arkansas, let LegalZoom help. Our LLC formation services start at just $0 plus state filing fees. And if you want or need a little extra help at each step, the Pro and Premium packages give you added peace of mind.
We stand behind our work and offer a 100% accurate filing guarantee.
Find the right state to form an LLC
Find the right state to form an LLC
Every state has different rules, costs, and considerations for LLC formation.
Arkansas LLC formation FAQs
Can I form an Arkansas LLC if I live outside Arkansas?
You can form an Arkansas LLC from outside the state, but you must maintain an Arkansas registered agent. If you already formed an LLC elsewhere and want to operate in Arkansas, determine whether foreign registration is required for your activities.
Does Arkansas have an annual report for LLCs?
Yes, but Arkansas LLCs generally satisfy the state's annual-report requirement by filing their annual franchise tax report. The $150 franchise tax is due by May 1 each year. The franchise tax report also updates information such as the LLC's registered agent, principal office, and management.
Who can form an LLC in Arkansas?
One or more people can act as organizers to form an Arkansas LLC. The organizer is responsible for filing the certificate of organization and does not have to be a member, manager, or registered agent. Arkansas also requires at least one officer to be identified on an initial filing for franchise-tax purposes.
When does an Arkansas LLC's existence begin?
An Arkansas LLC is formed when its certificate of organization becomes effective and at least one person has become a member or manager. A filing generally takes effect when the Secretary of State files it, although you can specify a later effective date of up to 90 days. This means the LLC's legal formation date isn't necessarily the same day you submit your paperwork.
Is an Arkansas LLC member-managed or manager-managed?
Arkansas defaults to member-managed unless the operating agreement expressly provides that the company is manager-managed. In a member-managed LLC, members generally manage the company; in a manager-managed LLC, managers handle management as the agreement provides. If you want managers to run day-to-day operations, document that choice in the operating agreement and define authority, voting, and member rights.
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