How to Form an LLC in Arkansas (2026)
Reviewed by DocDraft Legal Team · Arkansas · Last updated 2026-08-06
A limited liability company (LLC) is a business structure that legally separates the company from the people who own it, so the owners are generally not personally responsible for the company's debts. Forming one in Arkansas means filing a formation document with a state agency and paying its fee to bring the company into legal existence. In Arkansas you create an LLC by filing the Certificate of Organization for a Domestic Limited Liability Company (Form LL-01) with the Arkansas Secretary of State, Business and Commercial Services, and paying a $45 fee to file online. Two features define the ongoing cost of running the company. First, every Arkansas LLC owes a $150 annual franchise tax, reported to the Secretary of State each year regardless of income. Second, that annual filing is how the state keeps your LLC in good standing, so it is a recurring obligation, not a one-time step. Arkansas LLCs are governed by the state's Uniform Limited Liability Company Act in the Arkansas Code, Title 4. This guide explains what an LLC is, the exact Arkansas steps and fees, and the deadlines that keep the company in good standing.
Find out where you stand in Arkansas
Where are you in forming your LLC?
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How do you form an LLC in Arkansas?
File the Certificate of Organization for a Domestic Limited Liability Company (Form LL-01) with the Arkansas Secretary of State, Business and Commercial Services, and pay the $45 fee to file online. You must name a registered agent with an Arkansas address. Online filings are typically processed in three to five business days.
What is the Arkansas LLC annual franchise tax?
Every Arkansas LLC owes a $150 annual franchise tax, reported to the Secretary of State each year. The tax is a flat amount that applies regardless of the company's income or activity. Filing and paying it on time is what keeps the LLC in good standing with the state.
Does an Arkansas LLC need a registered agent?
Yes. Arkansas requires every LLC to name and maintain a registered agent with a physical Arkansas street address who is available during business hours to accept legal documents and official state mail. You list the registered agent on the Certificate of Organization when you form the company.
Does Arkansas require newspaper publication to form an LLC?
No. Arkansas does not require an LLC to publish notice of its formation in a newspaper. This is unlike New York, Arizona, and Nebraska, where publication is a condition of forming or operating. In Arkansas the Certificate of Organization filing and the annual franchise tax report are handled through the Secretary of State, with no separate publication step.
Arkansas LLC formation at a glance
You form an Arkansas LLC by filing the Certificate of Organization for a Domestic Limited Liability Company (Form LL-01) with the Arkansas Secretary of State, Business and Commercial Services, and paying a $45 fee to file online. What defines the ongoing cost is the annual franchise tax, not the formation cost. Every Arkansas LLC owes a $150 annual franchise tax reported to the Secretary of State each year, and it applies whether or not the LLC makes money. That annual filing is how the state keeps the company in good standing, an annual cadence rather than the biennial cycle some states use. Every LLC must name and maintain a registered agent with a physical Arkansas street address. Arkansas does not require newspaper publication. You can reserve an available business name with the Secretary of State for $22.50 while you prepare your paperwork. Online filings are typically processed in three to five business days. The governing statute is the Arkansas Uniform Limited Liability Company Act in the Arkansas Code, Title 4.
Forming a two-owner Arkansas LLC, step by step
Suppose two friends in Little Rock want to open a small design studio as an LLC. First they search the Arkansas Secretary of State's business search to confirm their name is available and includes a designator such as LLC, and they can reserve the name with the Secretary of State for $22.50 while they prepare paperwork. Next they appoint a registered agent: one owner lives in Arkansas and agrees to serve, using an Arkansas street address, not a P.O. box, where legal papers can be delivered during business hours. They then file the Certificate of Organization (Form LL-01) with Business and Commercial Services and pay the $45 fee to file online. The LLC legally exists once the Secretary of State files it, typically within three to five business days for an online submission. Because they have two members, they also write an operating agreement setting each owner's percentage and how profits split, even though Arkansas does not require them to file it. They apply to the IRS for a free EIN so the partnership can file taxes and open a bank account. Finally they calendar the $150 annual franchise tax, reported to the Secretary of State each year, so a missed filing does not put the LLC out of good standing.
Relevant Laws
Arkansas Uniform Limited Liability Company Act (Ark. Code Ann. Title 4)
The Arkansas Uniform Limited Liability Company Act governs the formation, management, and dissolution of every Arkansas LLC. It sets who may form an LLC, the required contents of the Certificate of Organization, the registered agent requirement, and the default rules for member-managed and manager-managed companies.
Certificate of Organization (Form LL-01)
An Arkansas LLC is formed by delivering a Certificate of Organization for a Domestic Limited Liability Company to the Secretary of State, Business and Commercial Services, for filing. The Secretary of State provides this as Form LL-01, which states the LLC's name, its registered agent, and its principal address. The fee is $45 to file online.
Registered agent requirement
Arkansas requires every LLC to designate and continuously maintain a registered agent in the state. The agent, an individual residing in Arkansas or a registered corporate agent, receives lawsuits and official notices for the company at a physical Arkansas street address. The agent's information goes on the Certificate of Organization.
$150 annual franchise tax
Arkansas imposes a $150 annual franchise tax on every LLC organized in the state. The tax is a flat amount reported to the Secretary of State each year, and it applies regardless of income or activity. Filing and paying it on time keeps the LLC in good standing; missing it can put the company out of good standing.
IRS federal tax classification (default pass-through)
The IRS does not tax the LLC as a separate category. By default a single-member Arkansas LLC is disregarded and taxed like a sole proprietorship, and a multi-member LLC is taxed as a partnership, with income passing through to the owners. An LLC may instead elect S corporation or C corporation treatment. This federal classification is separate from the Arkansas annual franchise tax, which applies either way.
Regional Variances
How forming an LLC in Arkansas differs from other states
The $150 annual franchise tax
This is the headline ongoing cost. Every Arkansas LLC owes a $150 annual franchise tax reported to the Secretary of State each year regardless of income. Some states charge no comparable annual amount, while others charge much more. In Arkansas the flat $150 is the main recurring cost after the low $45 formation fee.
Low formation fee
Arkansas charges $45 to file the Certificate of Organization online, one of the lower formation fees in the country. Many states charge $100 or more to form an LLC. The low entry cost means the annual franchise tax, not the filing fee, is what shapes the long-term cost of the company.
No newspaper publication requirement
Arkansas does not require you to publish notice of formation in a newspaper. New York, Arizona, and Nebraska do, which adds cost and a deadline. An Arkansas LLC is complete once the Secretary of State files the Certificate of Organization, with no publication step.
Formation document and filing office
Arkansas uses the Certificate of Organization (Form LL-01), filed with the Secretary of State, Business and Commercial Services. Some states call the document Articles of Organization or a Certificate of Formation, and some route filings through a Division of Corporations rather than the Secretary of State.
Annual cadence, not biennial
Arkansas requires the franchise tax report every year. Some states, such as California, require a Statement of Information only every two years. The annual cadence means the easiest way to fall out of good standing in Arkansas is forgetting the yearly franchise tax filing.
Suggested Compliance Checklist
Confirm your LLC name is available and compliant
Before filing days after startingSearch the Arkansas Secretary of State's business search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Secretary of State for $22.50 while you prepare your Certificate of Organization.
Appoint a registered agent
Before filing days after startingArkansas requires a registered agent with a physical Arkansas street address who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in Arkansas, or a registered corporate agent service will serve. You will name the agent on the Certificate of Organization, so settle this first.
File the Certificate of Organization (Form LL-01) with the Secretary of State
To create the LLC days after startingFile Form LL-01 with the Arkansas Secretary of State, Business and Commercial Services, and pay the $45 fee to file online. The LLC legally exists only once the Secretary of State files it, typically within three to five business days for an online submission. Keep the filed confirmation as proof of formation.
Adopt an operating agreement
At or soon after formation days after startingPut the ownership percentages, profit split, management structure, and exit rules in writing. Arkansas's LLC act expects members to have an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft.
Get a federal EIN from the IRS
Before opening a bank account or hiring days after startingApply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate.
File and pay the $150 annual franchise tax to the Secretary of State
Every year days after startingEvery Arkansas LLC owes a $150 annual franchise tax reported to the Secretary of State each year, whether or not it makes money. Pay it on time so a lapse does not put the LLC out of good standing. Calendar the deadline when you form, and file it through the Secretary of State's business portal each year.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm your LLC name is available and compliant | Search the Arkansas Secretary of State's business search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Secretary of State for $22.50 while you prepare your Certificate of Organization. | - | Before filing |
| Appoint a registered agent | Arkansas requires a registered agent with a physical Arkansas street address who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in Arkansas, or a registered corporate agent service will serve. You will name the agent on the Certificate of Organization, so settle this first. | - | Before filing |
| File the Certificate of Organization (Form LL-01) with the Secretary of State | File Form LL-01 with the Arkansas Secretary of State, Business and Commercial Services, and pay the $45 fee to file online. The LLC legally exists only once the Secretary of State files it, typically within three to five business days for an online submission. Keep the filed confirmation as proof of formation. | - | To create the LLC |
| Adopt an operating agreement | Put the ownership percentages, profit split, management structure, and exit rules in writing. Arkansas's LLC act expects members to have an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft. | llc-operating-agreement | At or soon after formation |
| Get a federal EIN from the IRS | Apply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate. | - | Before opening a bank account or hiring |
| File and pay the $150 annual franchise tax to the Secretary of State | Every Arkansas LLC owes a $150 annual franchise tax reported to the Secretary of State each year, whether or not it makes money. Pay it on time so a lapse does not put the LLC out of good standing. Calendar the deadline when you form, and file it through the Secretary of State's business portal each year. | - | Every year |
Frequently Asked Questions
An LLC, or limited liability company, is a business structure that legally separates the company from its owners, called members. The members are generally not personally responsible for the company's debts or lawsuits, so a creditor usually cannot reach a member's home or personal savings for a business obligation. Arkansas LLCs are created under the Arkansas Uniform Limited Liability Company Act in the Arkansas Code, Title 4. The structure combines that liability shield with pass-through taxation and lighter paperwork than a corporation, which makes it the most common choice for small Arkansas businesses.
A sole proprietorship needs no state filing, but it gives you no liability protection, so your personal assets are exposed to business debts and lawsuits. An Arkansas LLC costs $45 to file the Certificate of Organization online and separates your personal finances from the company. The tradeoff is the $150 annual franchise tax an LLC owes each year, which a sole proprietor does not pay. Attorney review of your structure choice is available through DocDraft if you want a licensed attorney's input.
You file the Certificate of Organization for a Domestic Limited Liability Company, Form LL-01, with the Arkansas Secretary of State, Business and Commercial Services. The fee is $45 to file online. The form lists your LLC's name, its registered agent and Arkansas street address, and its principal address. The company legally exists once the Secretary of State files it, typically within three to five business days for an online submission, so keep the filed confirmation as your proof.
The Arkansas franchise tax is an annual filing, not a biennial one like the statements some states use. Every Arkansas LLC reports and pays the flat $150 to the Secretary of State each year, whether or not the company made any money. Because it recurs yearly, the easiest way to fall out of good standing in Arkansas is forgetting this filing, so calendar it when you form. A lapse can lead the state to revoke the LLC's good standing.
Yes. If you have a name but are not ready to file the Certificate of Organization, you can reserve an available name with the Arkansas Secretary of State for $22.50 while you prepare your paperwork. First search the Secretary of State's business search to confirm the name is not already in use and includes a designator such as LLC or Limited Liability Company. Reserving holds the name so another filer cannot take it before you organize.
The IRS does not tax an LLC as its own category. By default a single-member Arkansas LLC is disregarded and taxed like a sole proprietorship, while a multi-member LLC is taxed as a partnership, with profits passing through to the owners' returns. An LLC can instead elect S corporation or C corporation treatment. This federal classification is separate from the $150 Arkansas annual franchise tax, which every LLC owes regardless of how it is taxed.
Other Arkansas guides
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