.elementor-column .elementor-spacer-inner{height:var(–spacer-size)}.e-con{–container-widget-width:100%}.e-con-inner>.elementor-widget-spacer,.e-con>.elementor-widget-spacer{width:var(–container-widget-width,var(–spacer-size));–align-self:var(–container-widget-align-self,initial);–flex-shrink:0}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container,.e-con>.elementor-widget-spacer>.elementor-widget-container{height:100%;width:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer{height:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner{height:var(–container-widget-height,var(–spacer-size))}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty,.e-con>.elementor-widget-spacer.elementor-widget-empty{position:relative;min-height:22px;min-width:22px}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon,.e-con>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon{position:absolute;top:0;bottom:0;left:0;right:0;margin:auto;padding:0;width:22px;height:22px}
.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}
How Much Does an LLC Cost in Arkansas?
.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=”.svg”]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}
.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}
Entrepreneurs who establish a business in Arkansas enjoy access to wide-reaching benefits. The Natural State offers a variety of tax exemptions and incentives in an environment where your dollar goes further than in other places. With a cost of living index better than the national average and nearly two-thirds of residents are of working age, Arkansas has proven an excellent state to start a business.
Although it ranks among the business-friendly states, the process of starting an LLC in Arkansas can be just as challenging as many others. Navigating a bureaucracy that involves multiple documents, research, paying a filing fee and knowing the total LLC Arkansas cost is not always the best use of someone’s time who is ready to launch an enterprise. It may be worthwhile to work with an LLC formation service to negotiate a process that requires complex paperwork and expenses. The following will answer the million-dollar question: How much does an LLC in Arkansas cost?
General Steps and Costs When Forming an Arkansas LLC
Starting a legally recognized entity tasks professionals with following a step-by-step Arkansas LLC formation process. First-time business owners sometimes make errors that result in timeline and financial setbacks. The following covers the broad strokes of starting an organization and the fees associated with an Arkansas LLC.
Naming your Arkansas LLC
You can conduct a business entity search on the Arkansas Secretary of State’s website at no cost. Enter the name you hope to establish an LLC under and other pertinent information and click search. If the platform doesn’t produce a hit, the entity name is likely available. You can reserve the name by filling out or electronically filing an Application for Reservation of Entity Name form. The state will set aside the name for 120 for $22.20 online or $25 if sent through snail mail. By that same token, you can immediately file for the business entity name for the same cost, $22.50 and $25, respectively. It’s possible to get expedited, in-person processing for $25 as well.
Filing articles of organization
Once you have a viable business entity name, you can take the next step — filing Articles of Organization. This document establishes the legal basis for your Arkansas LLC. After the paperwork has been processed, you’ll receive an official notice from the state signaling that you can begin operations.
The fee for Articles of Organization is $45 for a digital filing and $50 if mailed. If you wish to receive multiple copies of certified business documents such as the Articles of Organization, the Secretary of State charges $25 per document.
Appointing a registered agent
The State of Arkansas does not necessarily require you to appoint a registered agent. That being said, working with a registered agent service provider can save you a great deal of time and energy. A registered agent receives and forwards essential documents. The professional service also proves the business exists by providing the state with a physical mailing address. Business leaders also enjoy a needed layer of privacy. Hiring a reliable registered agent service runs between $199 and $400 annually, depending on your Arkansas LLC needs.
Creating an operating agreement
Hiring an attorney to write an Operating Agreement for your Arkansas LLC could run over $1,000. If you decide to take a crack at it, law firms will likely charge you about $500 to review it to ensure it meets all of the legal requirements. If it doesn’t, you could end up spending a significant amount of time and paying another review fee. It’s not uncommon for entrepreneurs to use a dependable online operating agreement creation service. The cost is generally far lower than hiring a lawyer, and a professional platform will save you time.
Other Annual and Additional Arkansas LLC Costs
If you decide to conduct operations under a moniker other than your official LLC, Arkansas allows businesses to file for a fictitious name, sometimes called a “doing business as” or DBA. You’ll need to fill out and file an Application for Fictitious Name and pay a $22.50 online fee. The cost is $25 by snail mail or in-person filings. Should you decide to cancel the fictitious name, the paperwork can be filed online, by mail or in person, along with a $25 fee. Canceling or transferring a fictitious name costs $25.
At some juncture, you may need an Arkansas Certificate of Good Standing. The official document demonstrates to banks and lenders that you are current on your business taxes and state filings. The processing fee is $25.
In the event you desire to terminate your LLC, you will need to file a Statement of Dissolution. This document helps protect against unauthorized use of your business entity’s name, debt accumulation, and other risks. A digital filing costs $45, and a hard copy runs $50.
Franchise Tax
Arkansas is one of the states that collects a franchise tax for organizations with multiple locations. The annual franchise tax report must be filed by May 1 at a cost of $150. If you miss the deadline, a $25 late fee will be added. The state also levies 10 percent in interest charges for each year the report isn’t filed. You don’t have to pay your franchise tax fees on May 1, but the paperwork must be filed.
Business Licenses & Permits
An Arkansas LLC that requires a Sales and Use Tax Permit will incur a $50 fee, payable to the Arkansas Department of Finance and Administration. The cost of professional licenses and permits varies by industry and location. They range from $50 to more than $1,000. Examples include an architectural firm license ($250) and a general business license in Fort Smith ($100). Check with state and local license and permitting agencies to determine the license and permits needed to start your venture.
Annual Report
A variety of states task business owners with filing annual reports. If you start an Arkansas LLC, annual reports are only necessary in certain circumstances. For example, if you alter your LLC to a limited liability limited partnership (LLP), annual reports are required with $15 fees. The majority of entrepreneurs stick with their LLC because it provides enhanced protections and agility and allows owners to pass the revenue through their personal tax returns.
What Expenses You Can Write Off
If there’s a silver lining to outlaying this start-up cash, it’s that the majority of costs are tax deductible. It’s highly likely that the filing fees and price of a registered agent, professional Arkansas LLC formation expenses, and others will reduce your tax liability. These are estimates of what you may be able to write off at the end of the year.
-
Cost of Completing Articles of Organization: The state charges $45 for online filings and $50 through the mail. An additional $25 is collected for each extra copy. These fees and the expense of hiring a professional LLC services provider lower your taxable income. -
Filing Fees: The filing fees for items such as a franchise report run $150. This cost may be tax deductible based on your business entity structure and tax position. -
DBA Fees: Acquiring a fictitious name adds $22.50 to $25 to your startup and filing costs. -
Operating Agreement Costs: The cost of a DIY operating agreement ends up costing more than hiring a professional LLC service provider. Lawyers can charge $500 just to look it over and $1,000 to fill out a template on your behalf. An LLC service charges far less, and you can write it off as a business expense. -
Registered Agent Costs: A registered agent charges $199 to $400, depending on the extent of the necessary services. Again, the IRS considers this the cost of doing business. -
Attorney Fees: A law firm can charge entrepreneurs tens of thousands of dollars to form an Arkansas LLC. While generally a tax write-off, you can minimize that expense by outsourcing to a reliable online Arkansas LLC formation provider.
Arkansas LLC Costs – Summary
The cost of starting an LLC in Arkansas is considered relatively inexpensive compared to other states. That being said, this is a quick overview of the various state fees you will be required to pay. The list should prove helpful when creating a new business budget.
LLC Filing Fee (Articles of Organization): $45 online and $50 by mail.
Business License: Costs differ by industry and municipality. A Barber’s License can run $50 and another $75 to take the exam. An Arkansas Real Estate License costs about $50, but the coursework, exam, and other fees can put it over $600.
-
Registered Agent (optional): A reliable Registered Agent charges $199 to $400. If you have the time to spare, you can handle these responsibilities yourself. The state does not impose a fee to work with a Registered Agent. -
Reserve Business Name (optional): Reserving a business entity name for 120 requires a $22.50 fee for digital applications and $25 when mailed. -
Filing a DBA (optional): Filing for a fictitious name, also known as a DBA, costs $22.50 for digital applications and $25 when mailed. -
Operating Agreement (optional): Having a professional craft an Operating Agreement can cost upwards of $1,000. -
Franchise Tax: The minimum franchise tax in Arkansas is $150, which is also the fee for filing a franchise tax report each May 1.
Conclusion
The cost of starting an LLC in Arkansas reportedly ranks among the lowest in the nation. Filing fees and document creation are generally written off on tax filings. However, savvy business leaders can take advantage of budget-friendly online Arkansas LLC formation services and put their time and energy into marketing the brand and attracting customers.
Related LLC Articles
LLC Formation
How Much Does It Cost to Start an LLC?
Business Startup Costs for Business Owners
How to Start Your LLC in Alaska
Learn More About LLC in Alaska
How to Get Small Business Licenses and Permits in Alaska
How Much Does an LLC Cost in Alaska?
How to Dissolve an LLC in Alaska
How to Do a Business Entity Search in Alaska
5 Best LLC Formation Services in Alaska
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.
The post How Much Does an LLC Cost in Arkansas? appeared first on Tailor Brands.
