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Start a Business in Arkansas

Costs, permits, taxes, and requirements for AR.

Cost rank
3rd of 50
86% of the national average · 47 states cost more
State income tax
2-4.4%
Charged on top of federal income tax
Sales tax
6.5%
You collect it on taxable sales and remit it to the state
LLC filing fee
$45
One-off, paid to the Secretary of State · 2nd cheapest of 50 (median $100)

Where Arkansas sits on cost

Cheapest third to most expensive third, by startup cost index. Select a state to open its page; on desktop, hover shows its index and rank.

AR Lower cost Mid Higher cost

What's different in Arkansas

The state average hides two Arkansases. The northwest corner around Bentonville, Rogers and Fayetteville runs on a supplier economy built around one very large retailer, and its rents, wages and competition behave like a mid-sized metro. The Delta counties on the far side are among the cheapest places in the country to hold premises, with the thin customer base that goes with cheap. One thing is constant wherever you land: the yearly entity fee is charged on the company itself, so a quiet year still costs you the filing.

The northwest is a different price level
Supplier-economy demand there has pulled rent and pay well above the rest of the state.
Inbound freight is unusually cheap
Several national trucking carriers are headquartered here and the inbound rates reflect it.
The entity fee ignores your year
It is charged annually on the company, in a good year and in a dead one alike.

Business Guides for Arkansas

All 53, cheapest first. Ranges are what that business actually costs in AR.

Under $10K 24

$10K – $50K 17

$50K and up 12

Get a personalized cost estimate for Arkansas

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Business Requirements in Arkansas

1

Register Your Business

File with Arkansas Secretary of State. LLC fee: $45

2

Get Business License

Most cities require a general business license ($50-$300).

3

Get EIN

Free from IRS. Required for bank accounts and taxes.

4

Register for Sales Tax

State rate: 6.5%. Local taxes may apply.

5

Get Business Insurance

General liability protects from lawsuits. Often required by landlords.

Frequently Asked Questions

Q.01 How much does it cost to start a business in Arkansas?
Startup costs in Arkansas are 14% lower than the national average. LLC filing costs $45, plus business license ($50-$300). Total varies by business type.
Q.02 Does Arkansas have income tax?
Arkansas has a state income tax rate of 2-4.4%.
Q.03 What is the sales tax in Arkansas?
The state sales tax in Arkansas is 6.5%. Local taxes may apply.
Q.04 How do I form an LLC in Arkansas?
File Articles of Organization with the Secretary of State (fee: $45). You'll also need an Operating Agreement and EIN from the IRS.

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