How to Start an LLC in Arkansas: LLC Filing Fees in Arkansas 2022

How to Start an LLC in Arkansas: LLC Filing Fees in Arkansas

In case you have always aspired to be a business owner, choosing to start an Arkansas LLC can be the first step. At least you would be running your business legally. You cannot skip this step as you may end up facing heavy fines in the future if caught. 

It can be a new small business, or you already have an established limited liability company in another state.  What is vital is that you follow the law to set up the LLC correctly. 

If it is your first time doing so, this is the right guide for you. It will help you understand the LLC laws in Arkansas and the process to take. Keep reading the guide to learn more. 

Filing Requirements & Overall Arkansas LLC Costs 

Before you can form an LLC in Arkansas, there is the need to understand the different costs that come with the process. Once you have the knowledge, your Arkansas LLC application should be smooth sailing. Let us see what you have to pay to get the LLC operational. 

Arkansas LLC Annual Report

You are required to file an annual LLC report together with your taxes. So, the next time you are filing your annual franchise tax report, include the LLC annual report as part of the package. 

If you can file it in time, your business should continue to have a good standing generally. 

LLC Annual Fees

In addition to the one-time fee for LLC formation, you would also have to deal with some recurring annual fees to run the limited liability company. 

Arkansas rolls both the franchise tax payments and annual reports into one so that the state can have updated information about the company. The minimum you can pay is $150. 

Registered Agent Fee

Having a registered agent for the business is vital. It is worth noting that an LLC in Arkansas can have a registered agent as a corporate or individual. As such, the price will vary a lot. With a bit of research, you can get enough information about the different agents allowed to operate in Arkansas and their rates. 

Application For Withdrawal (Foreign LLC)

Let us say an LLC was founded in a different state but now wants to expand its operations into Arkansas. In this case, it has to apply for a foreign LLC. 

The company will file for the Certificate of Registration rather than Articles of Organization. Such a business entity will pay $270 to file online for a foreign LLC or $300 for a hard copy filing

Business Licenses

In case you run a business and commercial services, you need to get licenses and permits. This is something that will depend on where the limited liability company is located. Different cities and counties might have varying laws on the business licenses that you need. 

It is best to consult with the local authorities to learn more about the necessary licenses and permits. 

Taxes

Besides paying for the licenses and permits for an LLC in Arkansas, the Arkansas Department of Finance also needs you to pay taxes. The most common tax you will pay is the annual franchise tax. Also, you will have to choose the LLC to be taxed as a corporation. 

When it is taxed as a corporation, you need to pay corporate income tax, often from 1 to 6.2%. Employees can file their personal tax returns. 

Other LLC Filing Costs

There can be other fees that you will encounter when forming an Arkansas LLC. Here more of such costs. 

LLC Name Reservation Fee

Any Arkansas LLC will need a business name. It is not a must to reserve your limited liability company (LLC) name in advance in Arkansas. However, sometimes it helps to reserve the name early. 

To reserve the name of your LLC, you must pay $22.50 if it is online or $25 for a hard copy. The reservation is only in place for 120 days. 

“Doing Business As” (DBA) Name

It is common for companies to register the DBA name too. This process costs a one-time fee of $15 to $25, depending on the nature of the business. 

Business Domain Name & Website

Any modern business entity needs a business domain name and website too. Domain names are cheap. Some cost as low as $5. So, it should not be a problem getting one when you want to form an LLC. 

Always search the domain name before settling on a business name. This is because the domain name needs to be the same as your business name. 

Articles of Organization Fee

When forming an LLC in a state such as Arkansas, it is vital to file the Articles of Organization. They help you run the business legitimately in the state. 

Some states can have high prices for filing these documents, but not Arkansas. It will cost you $45 when you submit online and $50 for paper filing

Attorney Fees

It is possible that you need legal documents to start an LLC. It is why you should always include the attorney fees in the cost to form an LLC. 

Some attorneys might offer free consultations, while others might charge per hour. Most business attorneys can charge an average of $100 to $300 per hour. Some offer a flat rate for forming an LLC on your behalf. Such can cost from $500 to over $1500. 

Tax ID Number (EIN)

For the purpose of state tax and business tax, it is vital to get an EIN. This one is free from the IRS website. 

Top 2 Arkansas LLC Services

ZenBusiness

The biggest advantage of using ZenBusiness is because it offers you several services and packages. As such, you would pick a package based on your needs and also budget. The company has cheap packages but can also have a premium package that costs more but has more services.

Other than ZenBusiness helping you register an Arkansas LLC, it can still offer other vital services. These ensure that your Arkansas LLC is operational and still maintains tax compliance as it should be. 

Despite being a young company, it has helped thousands of companies register as LLCs in different states. Sometimes you do not have to do much. It is the company that would do the heavy lifting. 

IncFile

Affordability is the biggest selling point of IncFile. It even has a package that costs $0 plus state fees. So, you will only have to pay the state fees to form an LLC. That is not all, as you would still get more services based on which package you want. 

The company’s customer support is also quite good. You will get options such as unlimited email and phone support. This can assure you that your LLC documents will be handled correctly. 

You can also get business tax consultations with IncFile. Some companies get in trouble because of their taxes. However, that can change when you have such professionals helping you. 

How To Start An LLC In Arkansas 

Step 1: Name Your Arkansas LLC

Step 2: Choose Your Registered Agent

Step 3: File Articles of Organization

Step 4: Prepare an Operating Agreement

Step 5: Obtain an EIN

Step 6: File Annual Reports

Step 1: Name Your Arkansas LLC

As expected, you need to find a name for your LLC if you want to have one in Arkansas. The name needs to be unique to use in the state of Arkansas. 

It is advisable to search your preferred name on the Arkansas Secretary of State website[5]. In case the name is already chosen, then you should look for another one. 

Even when searching the name for the LLC business, also remember to consider the web domain name. Luckily, you can file online for the business name reservation and registration. Online filing is faster and makes the whole process smoother. 

Step 2: Choose Your Registered Agent

So, what is next? At this point, you need to appoint a registered agent to handle other important things about your business. 

A registered agent must be able to receive important business documents such as tax forms, lawsuit notices, legal documents, and also act as correspondence on behalf of the business. 

It could be an individual, or you can choose a company that offers such a service. 

Step 3: File Articles Of Organization

When you want to form an LLC, there is the need to file the Arkansas Articles of Organization. This is a document that contains the name and address of your business, whether it is a sole proprietorship or not, its business structure, and so much more. 

Once the document is approved, then you can have the go-ahead to form your LLC in the state. 

The documents need to be filed with the Arkansas Secretary of State by filing Form LL-01[6]. You can do online filing, by mail, or sometimes do it in person. 

If you decide to file by mail, here is the address;

Arkansas Secretary of State

1401 W. Capital Ave.

Suite 250

Little Rock, AR 72201

Step 4: Prepare An Operating Agreement

Having an LLC operating agreement for a business in Arkansas is not a must. However, it can be a vital document when forming your LLC. It can help streamline finance and administration and still help understand the profits and losses. 

It can also be a nice way of resolving conflicts that might arise when operating the business. 

Step 5: Obtain An EIN

So, the EIN or Employer Identification Number is vital for any business to run. This number will be assigned to you by the Internal Revenue Service (IRS) to help deal with taxes. 

The EIN is not just for taxes alone. This number is still crucial when you have to open a business bank account. It is still the same you would use to hire employees too. It is always free, so you can apply for one as soon as the business gets approval. 

Step 6: File Annual Reports

The annual reports are also just as important as the operating agreement. There is the need to file them annually. You are advised to pay a minimum of $150 when filing such reports with the Arkansas Secretary of State office. 

Conclusion

The cost to form an Ohio LLC is average. This is made even better by the fact that Ohio doesn’t require annual report filing. This makes ongoing LLC maintenance cheap as well. For that reason, Ohio is a great option for both foreign and domestic LLCs. 

Frequently Asked Questions (FAQs)

Is there an annual fee for Ohio LLCs?

Unlike most states, Ohio does not require LLCs to file annual reports. However, there are some annual fees associated with your Ohio LLC. These include annual registered agent fees and annual taxes among others.

Do LLCs pay taxes in Ohio?

LLCs themselves do not pay taxes in Ohio, only the members do. However, Ohio Commercial Activity Tax applies to most Ohio business entities including LLCs. The tax is based on gross receipts for your business and is calculated at a small series of marginal rates.

Do you need an LLC operating agreement in Ohio?

An LLC operating agreement is not mandatory in Ohio. However, you should still consider it an essential step to forming an LLC in Ohio. It highlights how your company is managed and each member’s ownership. 

Is Ohio a good state for an LLC?

Ohio is a good state to start an LLC that is likely to operate in the state for an extended period of time. It is one of the states that doesn’t require filing an annual report. In addition, their tax rate is friendly. 

What happens if I don’t use my LLC?

If you don’t use your LLC, you will be held liable for the debts and taxes of the LLC. You are expected to use your LLC and file a tax return as per the state requirement. 

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  1. APPLICATION FOR CERTIFICATE OF REGISTRATION OF FOREIGN LIMITED LIABILITY COMPANY (PLEASE TYPE OR PRINT CLEARLY IN INK). (n.d.). [online] . Available at: https://www.sos.arkansas.gov/uploads/bcs/FL-01.pdf [Accessed 26 Jul. 2021].
  2. ‌Application for Reservation of Entity Name. (n.d.). [online] . Available at: https://www.sos.arkansas.gov/uploads/bcs/RN-06.pdf [Accessed 26 Jul. 2021].
  3. ‌Ark.org. (2018). Arkansas Secretary of State. [online] Available at: https://www.ark.org/sos/corpfilings/index.php [Accessed 26 Jul. 2021].
  4. ‌Articles of Organization for Limited Liability Company (PLEASE TYPE OR PRINT CLEARLY IN INK). (n.d.). [online] . Available at: https://www.sos.arkansas.gov/uploads/bcs/LL-01.pdf [Accessed 26 Jul. 2021].
  5. ‌Arkansas.gov. (2017). Arkansas Secretary of State. [online] Available at: https://www.sos.arkansas.gov/corps/search_all.php [Accessed 26 Jul. 2021].
  6. ‌Articles of Organization for Limited Liability Company (PLEASE TYPE OR PRINT CLEARLY IN INK). (n.d.). [online] . Available at: https://www.sos.arkansas.gov/uploads/bcs/LL-01.pdf.