[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.