A limited liability company (LLC) is a popular choice for small business owners because it has many advantages. An LLC, like a corporation, gives owners personal liability protection from business debts and liabilities. In addition, an LLC has a flexible management structure and tax options.
If you're looking to start an LLC in Arkansas, you'll need to follow these essential steps. For more information on how to form an LLC in any state, check out our article on how to start an LLC. You can also use our online LLC formation service to register your LLC.
Typically, your very first step after deciding on a business structure is choosing a business name. When you select a business name, you must follow the state's laws for LLC names. Arkansas's LLC naming laws are similar to those of other states and specify what you can and can't name your LLC.
LLC name must be distinguishable. You must pick a name for your LLC's name that's distinguishable (different) from the names of other business entities already on file with the Arkansas Secretary of State (SOS). You can check which names have already been taken by searching the SOS's business name database. (Ark. Code § 4-38-112 (2024).)
LLC name must include an entity designator. Under Arkansas law, an LLC must have the words "limited liability company" or "limited company," or the abbreviation "L.L.C.," "L.C.," "LLC," or "LC." You can abbreviate the words "limited" as "Ltd." and "company" as "Co." (Ark. Code § 4-38-112 (2024).)
Name reservation. You can reserve an available name for 120 days by filing an Application for Reservation of Limited Liability Company Name with the SOS. You can file the application online or by mail. As of 2024, the filing fee for the application is $25. (Ark. Code § 4-38-112 (2024).)
Using a DBA. If you want to do business under a name that's different from your LLC's legal name as it appears on its formation paperwork, you must register that name with the state. This separate name is called a "fictitious name." Other states might refer to this name as a "trade name," "DBA," (short for doing business as), or "assumed name." To register your fictitious name, you must file an Application for Fictitious Name with the SOS. You can file this application online or by mail. As of 2024, the filing fee is $22.50 if filed and online or $25 if filed by paper. (Ark. Code § 4-38-122 (2024).)
Every Arkansas LLC must have an agent for service of process in the state—known as a "registered agent." A "registered agent" is an individual or business entity that agrees to accept legal papers on the LLC's behalf if it's sued. They must have a place of business in the state and accept the designation. (Ark. Code § 4-38-115 (2024).)
In general, the agent must be either:
Commercial registered agents must file a commercial registered agent listing statement with the SOS. A noncommercial registered agent can be a person or a domestic or foreign business with an Arkansas address. You can appoint yourself or another LLC member as the LLC's registered agent.
(Ark. Code §§ 4-20-101 and following (2024).)
You can create an Arkansas LLC by filing a Certificate of Organization (Form LL-01) with the SOS. This form is called "articles of organization" in other states.
The certificate must include the following information:
(Ark. Code § 4-38-201 (2024).)
The certificate will also ask you to list at least one LLC member or manager for franchise tax purposes. You'll also need to provide contact information and your LLC's federal tax ID.
You can file the certificate online or print out the form and file it by postal mail.
As of 2024, the filing fee for a Certificate of Organization is $45 if filed online and $50 by paper.
In Arkansas, LLCs aren't required to have an operating agreement. But it's highly recommended that you create one for your LLC. An operating agreement can help preserve the LLC owners' limited liability protection by showing that the LLC is truly a separate business entity from its owners.
The agreement also lets you make your own rules for your LLC. When someone becomes a member of an LLC with an operating agreement, that member automatically becomes bound by the agreement. Without an operating agreement, Arkansas's default LLC laws will govern how your LLC operates.
Under Arkansas law, an operating agreement can govern:
(Ark. Code § 4-38-105 (2024).)
Your LLC's operating agreement is an internal organizational document. You don't need to file it with the state.
For help creating an LLC operating agreement, you can use our online LLC formation service.
Your LLC will likely need to comply with tax and regulatory requirements, including applying for business licenses and permits and registering for other business taxes.
EIN. If your LLC has more than one member, it must obtain a federal employer identification number (EIN), even if it has no employees. If you form a single-member LLC, you must obtain an EIN only if you'll have employees or you elect to have your LLC taxed as a corporation instead of a sole proprietorship (disregarded entity). You can obtain an EIN by completing an online EIN application on the IRS website. There's no filing fee.
Business licenses. Depending on your business location and activities, your LLC might need to obtain local and state business licenses. For example, you might need to apply for a professional license or license from your city. Be sure you and your business have all necessary operational, tax, and professional licenses and all required zoning and building permits. See our article on Arkansas business licenses for more guidance.
Tax registration and filings. All LLCs and foreign LLCs registered in Arkansas must pay a minimum $150 tax to the SOS each year by May 1. You'll pay this tax when you file your annual franchise tax report (discussed below). (Ark. Code § 26-54-104 (2024).)
In some cases, for example, if you'll be selling goods and collecting sales tax or hiring employees, you'll also need to register with the Arkansas Department of Finance and Administration (DFA). You can register your LLC for most taxes online through the Arkansas Taxpayer Access Point (ATAP).
For more information on state LLC taxes, check out our article on LLC annual report and tax filing requirements in Arkansas.
Here are some other questions you might have about your Arkansas LLC.
If you're just starting your business or have already been operating as a sole proprietor, you should consider forming an LLC. LLCs limit an owner's personal liability for business debts and lawsuits and offer a lot of flexibility when it comes to ownership, management, and taxation of the business.
To learn more about LLCs and decide if it's the right business structure for you, see our article on LLC basics.
Below are the fees (as of 2024) you might need to pay to form your LLC in Arkansas:
Filing on your own is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but it will often cost you hundreds, if not thousands, of dollars in the process. If you'd like help completing all the filings, try our online LLC formation service.
To learn more about the costs associated with forming and running an LLC, see our article on how much it costs to form an LLC.
Yes. Every LLC must file an Annual LLC Franchise Tax Report with the SOS and pay the associated $150 minimum tax. The report and tax are due every year by May 1 and late fees apply.
On the report, you'll include basic information about your LLC, including:
(Ark. Code §§ 26-54-101 and following (2024).)
You can file the annual franchise tax report online or download a report form from the SOS website.
For more details, see our article on LLC annual reports and tax filing requirements in Arkansas.
Apart from annual franchise tax reports, your LLC will need to file and pay applicable taxes to the local, state, and federal governments. In addition, your LLC might need to obtain and periodically renew any required general or special business licenses or permits. You'll be responsible for keeping track of these maintenance requirements to keep your LLC in good standing and legally compliant.
Starting in 2024, all LLCs were previously required to submit a beneficial ownership information (BOI) report to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. However, in March 2025, after some constitutional challenges, FinCEN revised the BOI reporting rule so that the requirement only applies to companies created outside the U.S. So, if you form your LLC within the U.S., then you no longer need to worry about the BOI reporting requirement.
You're not required to have an operating agreement for your LLC in Arkansas. Though, it's highly advisable to have one. An operating agreement can help protect your limited liability status, prevent financial and managerial misunderstandings among members, and ensure that you choose the rules that govern your business instead of your state's default rules.
Depending on your business activities and location, your LLC could need to obtain local and state business licenses. For local licenses, check with the city where your business is located (or county if you're in an unincorporated area). For state license or permit requirements, check with the Arkansas Department of Workforce Services.
You can find extensive details about state and local regulatory requirements in our Arkansas business license article.
LLCs are considered "pass-through entities" (PTEs) by default, meaning the responsibility for paying taxes on the LLC's income passes through to the members. So, an LLC member will report and pay taxes on their share of the LLC's income on their personal tax return.
However, there are other taxing scenarios that you should be aware of. Some LLCs elect to be taxed as a corporation rather than as a partnership (a type of PTE). Alternatively, Arkansas allows LLCs to pay income tax at the entity level through the pass-through entity tax (PET). If you elect to have your LLC pay the PET, then your LLC will be taxed at the entity level on behalf of the members (owners). You'd then claim a tax credit on your personal return for the tax already paid on your behalf by your LLC. You'll make these elections and report and pay these state taxes to the DFA.
In addition to income tax, your LLC might be responsible for reporting and paying sales tax, withholding employee wages, and paying unemployment insurance (UI) tax. You'll register to withhold and pay wages and to report and pay sales tax through the USTC. You'll need to register to pay the UI tax to the Arkansas Division of Workforce Services.
See our article on Arkansas tax filing requirements for more details.
Yes. To do business in Arkansas, all LLCs organized outside of the state (called "foreign LLCs") must register with the SOS. Your foreign LLC must appoint a registered agent for service of process that's physically located in Arkansas.
To register, file an Application for Certificate of Registration of Foreign Limited Liability Company with the SOS. Along with your certificate, you must include a certificate of existence or a similar document from your home state.
You can file the application online or by mail. As of 2024, the filing fee is $270 if filed online or $300 if a paper application is filed by mail.
Before filing, make sure the LLC's name is available in Arkansas. If your LLC's name isn't available, you can use an alternate name (also known as a "fictitious name") to transact business in the state. Before you submit your Certificate of Registration, you must submit to the SOS a resolution of the board members, certified by the LLC's secretary, adopting the new fictitious name. You must renew your name registration every year.
(Ark. Code §§ 4-38-901 and following (2024).)
You can find the forms and links you need on the SOS's foreign LLCs forms and fees webpage.
See our article on qualifying to do business outside your state for more guidance.
Yes. For most formation purposes, an Arkansas single-member LLC is considered the same as a multi-member LLC. The steps to form a single-member LLC in Arkansas are generally the same as those listed above.
Single-member LLCs do have additional flexibility when it comes to filing a tax return. To learn more, see our article on how single-member LLCs pay federal income tax.
Yes. If you provide a licensed professional service in Arkansas and want to form an LLC, you can form a professional LLC (PLLC). For example, architects, attorneys, dentists, and certified public accountants provide professional services. In general, if you or your business need a license, certification, or other legal authorization to provide a service, then you provide a professional service.
You can form a PLLC by submitting the same Certificate of Organization (Form LL-01) used to form a regular LLC.
If your LLC provides a professional service, your PLLC's name must include the words "Professional Limited Liability Company," "Professional Limited Company," or the abbreviations "P.L.L.C.," "P.L.C.," "PLLC," or "PLC." In addition, your PLLC's name can't include the name of a person who isn't a member. As with a regular LLC, the words "Limited" and "Company" can be abbreviated to "Ltd." and "Co." respectively.
If you reach the point where it's time to close your business and cease all operations, then you'll want to properly dissolve your LLC to limit your liability for lawsuits and government fees. To dissolve an LLC in Arkansas, you should:
(Ark. Code §§ 4-38-701 and following (2024).)
You'll also need to close your tax accounts and take any other steps necessary to close out your business. See our article on what you need to do when closing your business for more in-depth information and guidance.
Ready to start your LLC?
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