Cost To Form An LLC In Arkansas 2023: Reviews & Free Guides
Starting a limited liability company (LLC) in Arkansas can be a great way to protect your personal assets while doing business. However, before you can launch your LLC, you’ll need to understand the costs involved in the process. In this article, we’ll take a look at the typical costs associated with forming an LLC in Arkansas in 2023, as well as provide some free resources to help you navigate the process.
Whether you’re a seasoned entrepreneur or a first-time business owner, this guide will give you the information you need to make an informed decision about starting an LLC in Arkansas.
Cost Of LLC In Arkansas
- Arkansas LLC Filing Fee
- Arkansas LLC Annual Report
- Registered Agent Fee
- Application For Withdrawal (Foreign LLC)
- Business Licenses
- Taxes
- Other LLC Filing Costs
Cost Of LLC In Arkansas
Starting a limited liability company[1] (LLC) in Arkansas can be a great way to protect your personal assets while doing business. However, before you can launch your LLC, you’ll need to understand the costs involved in the process. This includes filing fees, annual report fees, registered agent fees, annual franchise tax report fees, and any additional licenses or permits required by the state or local government.
Arkansas LLC Filing Fees
The first step in forming an LLC in Arkansas is to file articles of organization with the Arkansas Secretary of State’s office.[2] The filing fee for articles of organization is $45 if you file online, and $50 if you file via mail.
Arkansas LLC Annual Report
LLCs are required to file an annual report[3] with the Arkansas Secretary of State’s office. The fee for filing an annual report varies depending on the type of LLC. For Limited Partnership, it’s free, for Limited Liability Partnership, the fee is $15.00 and for Limited Liability Partnership and Limited Company, the fee is $15.00
Registered Agent Fee
A registered agent[4] is a person or business entity that is designated to receive legal documents on behalf of your LLC. The cost to hire an own registered agent can vary, but it typically ranges between $100 and $300 per year.
Cost to Form A Foreign LLC In Arkansas
If your LLC is formed in a different state and you want to do business in Arkansas, you’ll need to register as a foreign LLC. The filing fee for an Arkansas Foreign LLC is $270 if you file online, or $300 if you file via paper form.
Business License
In addition to state-level requirements, some local governments in Arkansas may require a business license for your LLC. A business license is a document issued by the local government that allows you to legally operate your business. The cost of a business license can vary depending on the type of business, location, and other factors. For example, The Arkansas sales tax permit has a one-time $50 registration fee and does not need to be renewed. It’s important to check with your local government to determine if a business license is required for your LLC and what the cost will be.
Taxes
When forming a professional Limited Liability Company (LLC) in Arkansas, you must be aware of the various federal taxes that apply to your business. The state imposes income tax, franchise tax, sales tax, and other taxes that can affect your LLC’s bottom line. Additionally, if you are an employee or owner/member of the LLC then there may also be federal self-employment taxes and employer payroll tax withholding requirements to consider. Read on for more information about each type of taxation that applies to businesses in Arkansas.
State Income Tax
Arkansas does not impose a personal income tax; however, LLCs are subject to the Arkansas Corporate Income Tax, which is a tax on net income. The rate can be as high as 6.5% for taxable income over $25,000 and there may also be additional surcharges depending on the amount of taxable income reported.
Franchise Tax
In addition to its corporate income tax, Arkansas also imposes annual franchise tax reports on LLCs that operate within the state. This flat fee is based on your company’s total assets and ranges from $150 to $2,500 per year; it must be paid by April 15th of each calendar year in order for your LLC to remain in good standing.
Sales Tax
If your Arkansas LLC sells goods or services, then you must collect and remit sales tax on those transactions. The state’s current rate is 6.5%, but it can vary depending on the location of the sale. Additionally, many cities have their own local taxes that may also be applicable; for more information about local taxes, contact your county assessor’s office for details.
Federal Self-Employment Tax
LLC owners who are actively involved in managing the business may be subject to federal self-employment tax if they meet certain criteria set by the Internal Revenue Service (IRS). This tax is calculated on the income generated by the LLC and is generally 15.3% of your net profits.
Employer Payroll Tax Withholding
If you have employees in Arkansas, then you must pay payroll taxes for those workers. The state requires employers to withhold income tax from employee wages, as well as matching contributions for Social Security and Medicare; these amounts are determined by IRS guidelines and must be remitted quarterly to the Arkansas Department of Finance & Administration. Additionally, if any of your employees work in other states then you may also need to register with those states’ taxing authorities in order to pay payroll taxes there.
Other LLC Filing Costs
Forming an LLC in Arkansas also involves various other costs apart from the basic costs of filing fees, annual report fees, and registered agent fees. These additional costs include business name reservation fee, “Doing Business As” (DBA) name, business domain name and website, certified document copies, certificate of good standing, certificate of organization, attorney fees, and Tax ID Number (EIN).
Limited Liability Company Name Reservation Fee
The LLC Name Reservation fee is $25.00, this fee allows you to reserve a name for your LLC for 120 days.
“Doing Business As” (DBA) Name
In Arkansas, you can register a “Doing Business As” (DBA) name if you want to conduct business under a name other than the one listed on your articles of organization. The fee for filing a DBA name is $22.50 for online filing, or $25 for filing with a paper form.
Business Domain Name & Website
Registering a domain name for your business website and creating a website is an additional cost, depending on the platform and services you choose.
Certified Document Copies
If you need certified copies of your LLC’s documents, you can request them from the Arkansas Secretary of State’s office. Copies are $0.50 per page. There is an additional fee of $5.00 if the copies are to be certified. If you are paying by credit card or mailing the Records Request Form to the office, the minimum amount due is $2.50. If paying by credit card, there is an additional 4% transaction fee (minimum of $1.00) added to the cost.
Certificate Of Good Standing (Certificate of Compliance)
The Arkansas certificate of good standing, also called a certificate of compliance, verifies that your LLC is in compliance with state laws and is authorized to conduct business in Arkansas. The fee for this LLC’s certificate is $25 for normal processing and $28 for online orders.
Articles Of Organization Fee
As mentioned before, The Arkansas Secretary of State charges a $45 fee to file the Articles of Organization online and $50 if filed by mail.
Attorney Fees
While it’s not a requirement to hire an attorney to form an LLC, some people choose to do so to ensure that everything is done correctly. The average hourly rate for a lawyer in Arkansas is between $140 and $495 per hour, depending on the experience and location of the attorney.
Tax ID Number (EIN)
An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS that identifies a business for tax purposes. Obtaining an EIN for your LLC is free of charge.
What Is An LLC In Arkansas?
An LLC, or limited liability company, is a business structure that combines the personal asset protection of a corporation with the tax benefits of a partnership or sole proprietorship. In Arkansas, LLCs are formed by filing articles of organization with the Arkansas Secretary of State’s office. Once formed, an LLC must comply with ongoing state requirements, such as filing annual reports and appointing a registered agent.
6 Basic Steps To Start An LLC In Arkansas 2023
Starting an LLC in Arkansas in 2023 involves a few basic steps that must be completed in order to legally establish your business and comply with state regulations. This includes choosing a unique name, appointing a registered agent, filing articles of organization, obtaining necessary licenses and permits, creating operating agreements, and obtaining an Employer Identification Number (EIN) if required.
Choose A Name for Your LLC In Arkansas
When registering an LLC in Arkansas, it is important to pick a name that meets the state’s requirements. The name must be distinguishable from any other registered business entity or trademark and include either “limited liability company” or one of its abbreviations (LLC, L.L.C., etc.). In addition, prohibited words such as Bank, Attorney, and University are not allowed without additional paperwork and approval from the state.
Choose A Registered Agent In Arkansas
An individual or business designated by your LLC to receive legal documents on behalf of your company is known as a registered agent. An Arkansas registered agent must maintain a physical address in the state of Arkansas, and you will need to submit this information when filing your organizational paperwork.
File Organizational Paperwork With the State
To form an LLC in Arkansas, you’ll need to file Articles of Organization with the Secretary of State. This document includes information such as the name and address of the LLC, the purpose of the business, names/addresses of members/managers, and more. The filing fee is $50.
Obtain A Certificate From the State
After filing your Articles of Organization with the Secretary of State’s office, you will receive a Certificate of Formation for your LLC. This document is proof that the LLC exists and will provide you with the necessary information to open a business bank account, apply for business licenses, and other purposes.
Prepare An LLC Operating Agreement
An LLC operating agreement is an internal legal document between members/managers of an LLC that outlines the rules and regulations governing how the company operates. It includes details such as ownership interests, roles/responsibilities of members/managers, voting rights, and more. While this document is not required by Arkansas law, it’s highly recommended to have one in place.
Obtain An EIN For Your LLC In Arkansas
An EIN (Employer Identification Number)[5] is a unique nine-digit number assigned by the IRS to identify businesses. It’s used for filing or when you pay taxes, opening bank accounts, and other business-related activities. You can apply for an EIN online or by mail with the IRS free of charge.
The Top 2 LLC Services In Arkansas
When it comes to starting an LLC in Arkansas, there are various services available to help you navigate the process and comply with ongoing state requirements. Here are two of the top LLC services in Arkansas.
| Product | ||
| Name | ZenBusiness | Northwest Registered Agent |
| Full review | Read full review | Read full review |
| Link | Check Price | Check Price |
ZenBusiness
ZenBusiness is an online Arkansas LLC formation service that helps you start and maintain your LLC in Arkansas. They provide a variety of services to help you get your LLC up and running, including filing articles of organization, obtaining an EIN, and providing a registered agent service. Their service starts at only $0 per year and offers a 100% accuracy guarantee and a 60-day money-back guarantee.
Northwest Registered Agent
Northwest Registered Agent is a leading provider of registered agent services in Arkansas. They offer a variety of services to help you start and maintain your LLC, including filing articles of organization, preparing annual reports, and handling legal documents on your behalf.
Final Thoughts
The LLC cost in Arkansas for 2023 can be quite expensive, with some basic services costing up to $500. However, the right service provider and corporate structure can make these costs more manageable. Knowing the basics of forming an LLC, understanding all associated fees, and researching different providers will help you get started on a successful business venture. With the right knowledge and resources at your fingertips, you can save money on state filing fees while still creating a sound legal foundation for your business.
An LLC, or limited liability company, is a business structure that combines the personal asset or liability protection of a corporation with the tax benefits of a partnership or sole proprietorship. In Arkansas, LLCs are formed by filing articles of organization with the Arkansas Secretary of State’s office.
The filing fee for articles of organization in Arkansas is $45 if you file online, and $50 if you file via mail.
A registered agent is a person or business entity that is designated to receive legal documents on behalf of your LLC. The cost to hire a registered agent can vary, but it typically ranges between $100 and $300 per year.
It’s important to check with your local government to determine if a business license is required for your LLC and what the cost will be.
Northwest Registered Agent and Zenbusiness are two popular LLC services in Arkansas. They offer a variety of services to help you start and maintain your LLC at different cost ranges.
Yes, it’s important to have business insurance or limited liability protection when forming and operating an LLC in Arkansas. Business insurance can help protect you from potential liabilities or losses that your business may incur.