Costs for Starting a Business in Arkansas

Arkansas Startup Costs Overview

Setting up a small business in Arkansas generally involves lower initial costs compared to many other states, making it an attractive option for entrepreneurs. Commercial real estate and leasing rates are relatively affordable, especially outside major urban centers like Little Rock. Labor costs are also comparatively low due to the state's lower minimum wage and cost of living. Arkansas offers a business-friendly regulatory environment with fewer licensing fees and regulations, which helps reduce setup costs. Additionally, the state provides various incentives and support programs for small businesses, including tax credits and grants.

While the market size may be smaller compared to more populous states, Arkansas's lower costs and supportive economic climate provide a favorable environment for new business ventures.

Arkansas State-Specific Costs

Formation Costs

There are several types of business entities you can choose for your company.  Which is best for your business depends on a variety of factors, like ownership in the business, taxation, and more. Each structure has its own one-time formation or set-up cost that varies by state.

ENTITY
Cost
Notes
C-Corporation
$50
--
S-Corporation
$50
--
LLC
$50
--

Franchise Tax Fees

Franchise taxes are state fees that businesses pay in order to have the right to operate in those states. They are paid in addition to state and federal income taxes. Here are the franchise tax fees for each business entity structure in this state.  

ENTITY
Cost
Notes
C-Corporation
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S-Corporation
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LLC
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Annual Reporting Fees

In many states, business entities must file an annual report. Annual reports are short documents that provide updated information about your business, including the name and address of the business, the people who run it, and its registered agent. Keeping this information up to date ensures you stay compliant.

The most cost efficient way to report annually is to do it yourself. Here are the costs for annual filings for the state.
ENTITY
Cost
Notes
C-Corporation
$150
--
S-Corporation
$150
--
LLC
$150
--

State Income Taxes

Most states (44 out of 50) levy a corporate income tax. If the income tax is pass-through, use your personal income tax rate. For C-Corporations, file based on C-Corp rates.

ENTITY
Percentage fee
Notes
C-Corporation
1-5.3%
--
S-Corporation
Pass-through
--
LLC
--
--

Sales Tax

The Arkansas Sales Tax is 6.5%-11.5%

Outsourcing Costs

The Minimum Wage in Arkansas is $$$

Here are some resources for outsourcing help.

Additional Information

[URL by state – secretary of state and small business website link…maybe any other URLs custom to this state]

Non-State Specific Costs

These costs are similar across states. We estimate the total non-state specific costs to be $XXX. Link to Overall Costs page.

Total Costs for Starting a Business in Arkansas


Summing up the above fees, we estimate the total cost for starting a business in this state to be:

$XX