Arkansas Business Compliance Checklist
Arkansas has one of the more affordable formation regimes, but the annual franchise tax hits every entity. This page covers everything from filing fees to sales tax to hiring laws.
$45
$150
Every year
6.5%
state base rate
Yes
1. Entity Formation
| LLC filing fee (Articles of Organization) | $45 |
| Corp filing fee (Articles of Incorporation) | $45 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | No |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Every year — fee $150 |
| Franchise tax | Annual franchise tax: $150 for LLCs, minimum $150 for corps. |
3. Sales Tax
| State base rate | 6.5% |
| Combined rate range (with local) | 6.5% – 11.5% |
| Economic nexus (out-of-state seller) | $100,000 OR 200 transactions per year |
| Marketplace facilitator law | Yes — marketplaces (Amazon, Etsy) collect on your behalf. |
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $11.00/hr (2025) |
| Paid sick leave law | None (federal only) |
| Non-compete enforceability | Enforceable — reasonable scope and duration required |
| Contractor classification test | Common-law (IRS) test |
Full employment law breakdown: Arkansas Hiring Laws.
5. Workers' Compensation
Arkansas allows private-market workers' comp insurance (competitive market). Coverage is required starting with your 3th employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Progressive brackets — top marginal rate is 4.4%.
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes Arkansas Distinctive
Compliance quirks and rules that separate Arkansas from other states — worth understanding before you file.
- Arkansas charges every LLC a flat $150 annual franchise tax — no exceptions for inactive entities.
- The Arkansas Secretary of State (sos.arkansas.gov) allows online expedited filing for a small additional fee ($25).
- Arkansas requires businesses to register with the DFA (Department of Finance and Administration) for tax purposes separately from SoS entity registration.
This is a reference, not legal advice.
State fees and rules change. Verify current values with the Arkansas Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.