How to Form an LLC in Arkansas: Steps & Cost (2026)
You form an Arkansas LLC by filing a Certificate of Organization (Form LL-01) with the Arkansas Secretary of State and paying the $45 online filing fee ($50 by mail). You must appoint an Arkansas registered agent, and every Arkansas LLC owes a flat $150 annual franchise tax to the Secretary of State due by May 1 each year.
Quick Answer
- Form
- Certificate of Organization (Form LL-01)
- Filing fee
- $45 online / $50 by mail (2026), to the Secretary of State
- Agency
- Arkansas Secretary of State, Business & Commercial Services
- Registered agent
- Required - Arkansas resident or qualified entity who consents
- Ongoing
- $150 annual franchise tax, due May 1
- Governing law
- Ark. Code Ann. §§ 4-38-101 et seq.
Arkansas Agency and Form: Secretary of State, Form LL-01
An Arkansas LLC is created by filing a Certificate of Organization with the Arkansas Secretary of State, Business & Commercial Services division. The correct document is Form LL-01. When Arkansas adopted the Uniform Limited Liability Company Act (Act 1041 of 2021, codified at Ark. Code Ann. § 4-38-201), it renamed the formation document from "Articles of Organization" to "Certificate of Organization," so you may still see both names used for the same LL-01 form.
Form LL-01 asks for the LLC's name, its principal address, the registered agent and registered office, and the organizer's signature. The name must contain an LLC designator (such as "LLC," "L.L.C.," or "Limited Liability Company") and be distinguishable in the Secretary of State's records from existing entity names. You can file online through the Secretary of State's business portal - the fastest route at $45 - or by mail for $50. This guide covers the Arkansas process; for the national overview see how to form an LLC and the articles of organization explainer.
How to Form an Arkansas LLC, Step by Step
Forming an Arkansas LLC is a five-step process centered on Form LL-01. Each step maps to a requirement of the Arkansas Uniform LLC Act or a federal tax rule.
- Choose and check your LLC name. Select a name that includes an LLC designator and is distinguishable from names already on file. Search the Secretary of State's business database first, and confirm the name does not infringe a federal trademark.
- Appoint an Arkansas registered agent. Every Arkansas LLC must designate a registered agent with a physical Arkansas street address - the registered office. The agent may be an individual resident or a qualified entity and must consent to the role. See whether you need a registered agent.
- File the Certificate of Organization (Form LL-01). Submit Form LL-01 to the Secretary of State and pay $45 online or $50 by mail. Once accepted, your LLC legally exists.
- Adopt an operating agreement. Arkansas does not require or file an operating agreement, but one is strongly advised to set ownership percentages, management structure, voting, and profit distribution.
- Get an EIN and register for taxes. Apply for a free federal EIN from the IRS, register for sales/use tax with the Arkansas Department of Finance and Administration if you sell taxable goods, and set up your annual franchise tax account.
After these steps, open a business bank account (banks generally ask for the stamped Certificate of Organization and the EIN) and calendar the May 1 franchise tax deadline.
Arkansas LLC Filing Fees (2026)
The core cost of an Arkansas LLC is the $45 online Certificate of Organization fee, plus the recurring $150 franchise tax. The table lists the state fees most new LLCs encounter, verified against the Arkansas Secretary of State fee schedule and the Department of Finance and Administration. Amounts are effective for 2026 and set by the state, not any filing service.
| Item | Form | Fee (2026) | Agency |
|---|---|---|---|
| Certificate of Organization (create the LLC) | Form LL-01 | $45 online / $50 mail | Secretary of State |
| Annual franchise tax | Franchise tax report | $150 | Secretary of State |
| Name reservation | Reservation application | See SOS fee schedule | Secretary of State |
| Sales & use tax permit | DFA registration | See DFA (permit fee applies) | Dept. of Finance & Admin. |
| Federal EIN | IRS Form SS-4 | $0 (free) | IRS |
| Change of registered agent | Statement of Change | See SOS fee schedule | Secretary of State |
Because name reservation, expedite, and change-of-agent fees change, confirm the current amounts on the Secretary of State fee schedule before you file. See Arkansas LLC cost and how much an LLC costs for a full breakdown.
Arkansas Registered Agent Requirement
An Arkansas registered agent is the person or entity your LLC designates to receive service of process, tax notices, and official state correspondence. The Arkansas Uniform LLC Act, read with the state's Model Registered Agents Act, requires every LLC to designate and continuously maintain a registered agent and registered office in Arkansas. You name the initial agent directly on Form LL-01.
The agent must have a physical Arkansas street address - a post office box alone will not satisfy the registered office requirement - and must be either an individual Arkansas resident or a domestic or qualified foreign entity authorized to do business in the state. You may serve as your own agent, name a manager, or hire a commercial registered agent. To change agents later, file the appropriate statement of change with the Secretary of State. Failing to maintain an agent can lead the Secretary of State to revoke the LLC's good standing. See Arkansas registered agent requirements and the national registered agent overview.
Arkansas Franchise Tax and Annual Filing
Arkansas does not require a traditional annual report. Instead, every LLC pays a flat $150 annual franchise tax. Administration of the franchise tax moved from the Department of Finance and Administration to the Arkansas Secretary of State in 2021, so LLCs now file and pay it through the Secretary of State's online franchise tax system.
The franchise tax report and payment are due by May 1 each year. To be timely, the report and payment must be received by the Secretary of State's office by the close of business on May 1, or postmarked no later than midnight on May 1. The tax is a flat amount, not based on income, so most LLCs owe the same $150 regardless of revenue. Missing the deadline triggers penalties and interest, and prolonged nonpayment can lead the state to revoke the LLC's charter. Learn more at business tax.
EIN, Sales Tax, and Income Tax
A federal Employer Identification Number (EIN) is issued free by the IRS and is used to open a bank account, hire employees, and file taxes. By default, the IRS treats a single-member LLC as a disregarded entity (taxed on the owner's return) and a multi-member LLC as a partnership; either can elect corporate or S-corporation treatment by filing IRS Form 8832 or Form 2553. Arkansas taxes pass-through income on the members' Arkansas returns.
If your LLC sells taxable goods or certain services, you must register for an Arkansas sales and use tax permit with the Department of Finance and Administration before making sales; Arkansas charges a permit fee, so confirm the current amount on the DFA site. Arkansas has no general statewide business license, but many cities, counties, and regulated professions require their own permits - check local rules and see business licenses and LLC vs S-corp tax.
Penalties for Missing Arkansas Requirements
Missing Arkansas requirements has real consequences. If an LLC fails to pay the $150 franchise tax, the Secretary of State can impose penalties and interest and ultimately revoke the entity's authority to do business in Arkansas. A revoked LLC generally must pay the delinquent franchise tax plus penalties and file for reinstatement before it can operate again in good standing.
Separately, if an LLC does not maintain a registered agent and registered office, it can lose its good standing and become subject to administrative action. Keeping your registered agent current and paying the franchise tax by May 1 each year is the simplest way to avoid these outcomes. If you decide to close, see how to dissolve an LLC in Arkansas.
Closing an Arkansas LLC
To close an Arkansas LLC properly, wind up the business, pay any outstanding franchise tax and file final tax returns, and file a Statement of Dissolution with the Secretary of State. Simply abandoning the LLC leaves the $150 franchise tax accruing each year. See how to dissolve an LLC in Arkansas and the cost to dissolve an LLC for the full wind-up steps.
Frequently Asked Questions
How much does it cost to start an LLC in Arkansas?
The Certificate of Organization (Form LL-01) costs $45 online or $50 by mail. After formation, every Arkansas LLC owes a $150 annual franchise tax due May 1. See Arkansas LLC cost.
What form do I file to create an Arkansas LLC?
Form LL-01, the Certificate of Organization. Arkansas renamed it from Articles of Organization when it adopted the Uniform Limited Liability Company Act in 2021.
Does an Arkansas LLC need a registered agent?
Yes. Every Arkansas LLC must maintain a registered agent with a physical Arkansas street address who has consented to serve. You name the agent on Form LL-01.
What is the Arkansas LLC franchise tax?
A flat $150 per year, reported and paid to the Arkansas Secretary of State by May 1. It is not based on income, and Arkansas has no separate annual report.
How long does it take to form an Arkansas LLC?
Online filings are usually processed within a few business days; mailed filings take longer. Confirm current turnaround with the Secretary of State.
Related
- How to form an LLC (cluster hub)
- Arkansas registered agent requirements
- How much does an Arkansas LLC cost?
- How to get an EIN
- How to dissolve an LLC in Arkansas
- Business licenses
- How to form an LLC in Oklahoma (sibling)
- How to form an LLC in Louisiana (sibling)
More Arkansas business guides
Sources
- Arkansas Secretary of State - Forms / Fees / Records Requests (Form LL-01; $45 online / $50 mail).
- Arkansas Secretary of State - Certificate of Organization, Form LL-01 (PDF).
- Arkansas Secretary of State - Franchise Tax Report Forms ($150 annual franchise tax; May 1 due date).
- Arkansas Secretary of State - Business & Commercial Services (BCS).
- Justia - Ark. Code § 4-38-201, Formation; Certificate of organization.
- Justia - Ark. Code Title 4, Chapter 38 (Uniform Limited Liability Company Act).
- Arkansas Dept. of Finance & Administration - Sales and Use Tax (permit registration).
- Arkansas Dept. of Finance & Administration - Income Tax (pass-through income).
- IRS - Limited Liability Company (LLC) (federal default classification).
- IRS - Get an Employer Identification Number (free EIN).
- IRS - About Form 8832, Entity Classification Election.
- IRS - About Form 2553, Election by a Small Business Corporation.
- Cornell Law School (LII) - Limited Liability Company (LLC).
- Cornell Law School (LII) - Registered Agent.
LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Arkansas Secretary of State and Department of Finance and Administration before acting.