Start an LLC in Arkansas — Just $45 State Fee, 4.4% Flat Income Tax

Your Arkansas LLC name must be unique among all businesses registered with the Arkansas Secretary of State and must include a required designator.

Arkansas Naming Rules:

• Must include: "Limited Liability Company," "LLC," or "L.L.C."
• Cannot use: Words implying a government agency (e.g., "FBI," "State Department")
• Restricted words: "Bank," "Insurance," "University" require additional approval
• Must be distinguishable: From all existing Arkansas business names in the SOS database

Every Arkansas LLC must designate a registered agent — an individual or company with a physical Arkansas street address — to receive legal documents and official state notices during regular business hours.

Who can be your registered agent?

• Yourself: Must have a physical Arkansas address and be available during business hours
• A trusted individual: Any Arkansas resident with a physical address
• A professional service: Like Brendat — keeps your personal address off public records

The Articles of Organization officially creates your Arkansas LLC. You file it with the Arkansas Secretary of State — online via the Arkansas SOS portal or by mail. At just $45, Arkansas has one of the lowest LLC filing fees in the country.

Arkansas does not legally require an operating agreement, but it is strongly recommended for all Arkansas LLCs. It establishes ownership, profit sharing, and management rules and protects your liability shield.

Your operating agreement should cover:

• Ownership structure: Each member's percentage and capital contribution
• Profit distribution: How and when profits are divided
• Management: Who makes decisions and how voting works
• Member changes: Process for adding or removing members
• Dissolution: Steps to close the LLC if needed

An EIN is your LLC's federal tax ID — required to open a business bank account, hire employees, and file taxes. You apply through the IRS for free.

• US residents: Apply free online at IRS.gov — instant approval
• Non-US residents: Apply by fax using IRS Form SS-4 — 4–6 weeks
• Brendat handles this: Included in Standard and Premium packages

Arkansas LLCs must file an annual Franchise Tax Report every year with the Arkansas Secretary of State. Note: Arkansas calls this a "Franchise Tax Report" — it is the equivalent of an annual report in other states and is required to keep your LLC in good standing.

• Franchise Tax Report fee: $150/year (flat rate for LLCs)
• Due date: May 1 every year
• Filing: Online via Arkansas SOS portal
• Late penalty: $25 late fee + potential loss of good standing