How to Start an LLC in Arkansas (2026)

Full transcript

0:00 The short answer

Dan To start an LLC in Arkansas, you file a Certificate of Organization, Form LL-01, with the Arkansas Secretary of State, and pay $45 online.

Maya Forty-five dollars. Is that really all?

Dan For the formation, yes. After that there's a $150 franchise tax report every year.

Maya This is The Business Formation Podcast. Today, Arkansas for 2026, in six steps, with what it all costs and the three best ways to have it filed for you. What do I do first?

0:34 Step 1: Choose a name

Dan Include limited liability company, limited company, or an abbreviation like LLC or LC. It also has to be distinguishable from names on record.

Maya How do I look it up?

Dan The Secretary of State has a free business search.

Maya And holding a name?

Dan A reservation lasts 120 days. It's $22.50 online.

0:58 Step 2: Name a registered agent

Maya What does an Arkansas registered agent have to be?

Dan A person or a business located at an Arkansas street address.

Maya Can I use a mail drop?

Dan No. A P.O. box or mail drop isn't allowed.

Maya Is the agent's information public?

Dan Yes. That's why many owners use a commercial agent. And changing agents later is free.

1:20 Step 3: File the Certificate of Organization

Maya How do I file?

Dan Submit Form LL-01 through the Secretary of State's online filing system. It's $45.

Maya And on paper?

Dan $50.

Maya What does the form ask for?

Dan The name, a principal office, the registered agent, and at least one officer for franchise tax purposes.

Maya I'm Maya, by the way, here with Dan.

Dan Good to meet you, Maya. And the wait is short: most filings are done within two business days.

1:52 Step 4: Write an operating agreement

Maya Does the state need my operating agreement?

Dan No. It isn't filed with the Secretary of State, and there's no state fee.

Maya Then why write one?

Dan Arkansas law counts even an oral or implied agreement. So put yours in writing.

Maya What goes in it?

Dan Who owns what, how profits are split, who makes decisions, and what happens if a member leaves.

2:15 Step 5: Get a free EIN

Maya Next is the federal part?

Dan Right. Apply for your EIN free with the IRS at IRS.gov, after the state files your Certificate.

Maya And speed?

Dan If the online application is approved, the number is issued right away. You'll need it for the franchise tax report, too.

Maya Beneficial ownership report?

Dan Skip it. FinCEN no longer requires it from U.S. companies.

2:39 Step 6: The franchise tax report

Maya What's due every year?

Dan The Annual LLC Franchise Tax Report. You file it and pay the flat $150 tax by May 1.

Maya When does it start?

Dan The year after you form.

Maya Is there an extension?

Dan No extensions.

Maya And if I'm late?

Dan A $25 penalty plus interest. Keep not paying, and the state can revoke the LLC, while the tax keeps adding up.

3:04 What it costs

Maya Give me the do-it-yourself total.

Dan $45 to form online. Then $150 a year in franchise tax.

Maya And the EIN?

Dan Free.

Maya So what's my first full stretch?

Dan $45 to form. The first $150 comes due the next May 1. That's $195 across those two steps.

3:27 Online versus paper

Maya How much do I save going online?

Dan $5. It's $45 online and $50 on paper.

Maya Does the franchise tax change?

Dan No. It's a flat $150 either way.

Maya And if I hold the name first?

Dan Add the $22.50 reservation. That brings formation to $67.50 online.

3:50 Picking your registered agent

Maya Could I be my own agent?

Dan If you're a person at an Arkansas street address, the rules allow it.

Maya What about a friend?

Dan Same test. A person or business at an Arkansas street address, no P.O. box or mail drop.

Maya Commercial or not, does it matter?

Dan Either kind works, as long as the address qualifies. Changing later costs nothing.

4:12 Late franchise tax and revocation

Maya Let me press on May 1. What if I miss it?

Dan There's a $25 penalty plus interest.

Maya And if I keep ignoring it?

Dan The state can revoke the LLC. The tax keeps adding up in the meantime.

Maya So paying late is more than a one-time fee.

Dan Right. Interest builds, and with no extensions, May 1 is firm.

4:33 The officer on the form

Maya You said the form asks for an officer. I thought LLCs had members.

Dan The form asks for at least one officer for franchise tax purposes.

Maya Is that on Form LL-01 itself?

Dan Yes. It's one of the items right alongside the name, the principal office, and the registered agent.

Maya So I should decide that before I file.

Dan Yes. Have the officer, the agent, and the principal office ready, and the filing is quick.

5:01 When the first tax comes due

Maya Let me test the calendar. I form in the fall of this year. When is my first franchise tax?

Dan The year after you form, by May 1.

Maya So nothing this year?

Dan Right. The report starts the year after formation, and it's the flat $150.

Maya And the year after that?

Dan Every year on May 1, with no extensions. So set the reminder early.

5:27 The oral agreement question

Maya You said Arkansas counts an oral agreement. Does that mean I can skip writing one?

Dan You could, but I wouldn't. Arkansas law counts even an oral or implied agreement, so something unwritten still governs you.

Maya So there's a risk in leaving it vague.

Dan Right. Writing it down means you decide who owns what, how profits are split, and who makes decisions, rather than leaving it open.

Maya And the state never sees it?

Dan Never. It isn't filed, and there's no fee.

6:00 Quick facts to remember

Maya Give me the numbers I should memorize.

Dan $45 to form online. $50 on paper. $150 franchise tax. May 1 deadline.

Maya And the penalty?

Dan $25 plus interest if you're late.

Maya And the free items?

Dan The EIN, and changing registered agents.

6:23 First-year checklist

Maya Give me the order of operations.

Dan Search the name. Choose an agent at an Arkansas street address. File Form LL-01 online for $45. Then get your EIN and write your operating agreement.

Maya And the calendar?

Dan The franchise tax report, with the $150, by May 1 every year.

6:45 The 3 best ways to file in Arkansas

Maya What if I want someone else to file it?

Dan Here are the three best ways to file in Arkansas. Number one, our pick, is Mainstay Filing, $199 a year plus the state fee. With the $45 state fee, checkout comes to $244.

Maya What does it cover?

Dan Your Form LL-01 filed, your EIN application, and your registered agent every year. It renews at the same $199.

Maya And the franchise tax report?

Dan In Arkansas, Mainstay files it before May 1 every year. You pay only the $150 tax.

Maya Number two?

Dan AR Registered Agent.org. It prepares and files your Certificate for $199 plus the state fee, also $244 at checkout. The first year of agent service is free, then it's $99 a year.

Maya And number three?

Dan Arkansas Registered Agent.co. Same offer. $199 plus the state fee, first year of agent service free, then $99 a year.

Maya How do I choose?

Dan If you'll file your own franchise tax report, numbers two and three cost less from year two, at $99 a year for the agent alone. The $150 tax is the same either way.

8:09 Three years of service fees

Maya Give me the three-year comparison.

Dan Mainstay is $199 a year, so $597. Number two or three is $199 in year one, then $99 in each of the next two years, for $397.

Maya A $200 gap.

Dan Yes, and in Arkansas, that gap pays for having your franchise tax report filed before May 1.

8:36 Recap

Maya One more pass?

Dan Choose a name with LLC in it, name a registered agent at an Arkansas street address, file Form LL-01 online for $45, write an operating agreement, get your free EIN, and file your $150 franchise tax report by May 1 every year.

Maya The links to all three services and every official source are in the show notes. Thanks for listening to The Business Formation Podcast, and good luck with your new Arkansas LLC.