Does Arkansas have a state income tax?

Yes, Arkansas has a personal income tax rate of 2%-4.4% and a corporate tax rate of 1.0%-5.3%.

Do I need an EIN to start a business in Arkansas?

Yes, most businesses need an EIN (Employer Identification Number). It's free from the IRS — apply online at IRS.gov and receive it immediately.

How to Start a Business in Arkansas

Q: How long does it take to form a business in Arkansas?

Arkansas typically processes business filings in 1-3 business days. Online filing is available through the Secretary of State.

Everything you need to form an LLC or Corporation in Arkansas — filing fees, tax rates, and step-by-step instructions.

$45

LLC Filing Fee

$45

Corp Filing Fee

2%-4.4%

Income Tax

1-3

Days to File

Steps to Start a Business in Arkansas

Choose Your Business Structure

Decide between LLC, Corporation, S-Corp, Sole Proprietorship, or Partnership. LLCs are the most popular choice in Arkansas for their simplicity and liability protection.

Choose a Business Name

Your business name must be unique in Arkansas. Search the Secretary of State database to check availability. For LLCs, the name must include 'LLC' or 'Limited Liability Company.'

Appoint a Registered Agent

Every Arkansas business needs a registered agent — a person or service with a physical address in Arkansas who receives legal documents on your behalf.

File with the Secretary of State

File your Articles of Organization (LLC) or Articles of Incorporation (Corp) with the Arkansas Secretary of State. Filing fee: $45 for LLC, $45 for Corp.

Get Your EIN

Apply for a free Employer Identification Number (EIN) from the IRS. Takes minutes online at IRS.gov. You'll need this for taxes, banking, and hiring.

Open a Business Bank Account

Separate your business and personal finances. You'll need your EIN, formation documents, and operating agreement. Holdings makes this easy with integrated banking.

Business Entity Types in Arkansas

LLC

Corporation

Corporation (C-Corp)

Businesses planning to raise venture capital, go public, or have complex ownership structures.

Arkansas filing fee: $45

S-Corp

S Corporation

Small businesses wanting to reduce self-employment tax while keeping pass-through taxation. Must meet IRS eligibility (≤100 shareholders, US citizens/residents only).

Sole Proprietorship

Solo freelancers and contractors. No state filing required but offers no liability protection.

Partnership

General Partnership

Two or more people starting a business together. Consider an LLC instead for liability protection.

Nonprofit

Nonprofit Corporation

Organizations with charitable, educational, or religious missions seeking 501(c)(3) tax-exempt status.

Getting an EIN in Arkansas

An Employer Identification Number (EIN) is a 9-digit number assigned by the IRS to identify your business for tax purposes.

Free

IRS Filing Cost

Instant

Online Application

9 Digits

EIN Format

Apply for EIN at IRS.gov →

Arkansas Business Taxes

Corporate Tax Rate	1.0%-5.3%
Personal Income Tax	2%-4.4%
Annual Report Fee	$150

Official Arkansas Resources

🏛️

Secretary of State

File your business formation documents

📋

IRS EIN Application

Get your free EIN online instantly

Frequently Asked Questions

How much does it cost to start an LLC in Arkansas?

Filing an LLC in Arkansas costs $45 with the Secretary of State. You'll also pay $150 annually for the annual report. Add $50–$300/year if you hire a registered agent service.

How long does it take to form a business in Arkansas?

Arkansas typically processes filings in 1-3 business days. Online filing is available and generally faster.

Do I need a registered agent in Arkansas?

Yes. Every business entity in Arkansas must have a registered agent — a person or service with a physical address in Arkansas who can receive legal and tax documents on your behalf. You can serve as your own registered agent if you have a Arkansas address.

Should I form an LLC or Corporation in Arkansas?

For most small businesses, an LLC is the better choice — simpler management, flexible taxation, and personal liability protection. Choose a Corporation if you plan to raise venture capital or go public. In Arkansas, an LLC costs $45 to file vs $45 for a Corporation.

Start a Business in Other States

Alabama LLC: $200 Alaska LLC: $250 Arizona LLC: $50 California LLC: $70 Colorado LLC: $50 Connecticut LLC: $120

View all 51 states →

Related Resources

NAICSFind Your NAICS Code for Registration GlossaryWhat Is an EIN? (Employer ID Number)GlossaryWhat Is a DBA?FeesCompare Business Bank Accounts

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