Startup Costs in Arkansas

Data current as of May 2026

Arkansas is one of the cheapest states in the country to start a business, with the lowest commercial rents and labor costs in the nation. Bentonville has become a retail innovation hub thanks to Walmart's headquarters. The state's LLC filing fee of $45 is among the lowest in the US, though the sales tax rate is one of the highest when combined with local taxes.

Arkansas (AR) by the Numbers

LLC Filing Fee
$45
Annual Report
$150
State Income Tax
3.90%
Sales Tax
6.50%
Min Wage
$11.00/hr
Cost of Living
0.86x
Labor Cost
0.85x
Rent Index
0.68x

What Arkansas' Numbers Mean for Founders

  • State income tax caps at 3.90%.
  • Labor costs are 15% below the national average, a margin advantage for service and retail operations.
  • Commercial rent is 32% below the national average, which gives you more square footage for your budget.
  • LLC filing costs just $45, among the cheapest in the country.
Capital: Little Rock
Major metros: Little Rock, Fayetteville, Fort Smith, Bentonville
Top industries: Retail, Agriculture, Manufacturing, Transportation

Arkansas Cost Guides (10)