 Arkansas |  Texas | |
|---|---|---|
| All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee. | $130 | $392 |
| State filing fee | $45 | $307 |
| Typical approval time | 1–3 business days | 3–5 business days |
| What the state asks each year | Franchise tax $150 | Franchise tax report (no tax under threshold) |
| Yearly state cost, about | $150 | $0 |
| Total over 5 years, aboutFormation, then four years of registered agent ($45) and state fees. Excludes bookkeeping and IRS filings, which are the same in every state. | $910 | $572 |
| State income tax on wages | Yes | None |
| Owners in the public formation document | Can be listed | Can be listed |
| Newspaper publication after formation | No | No |
Arkansas against Texas
Advantages
- Cheaper to form: $45 state fee against $307 in Texas.
- Faster approval: usually 1–3 business days, against 3–5 business days.
Disadvantages
- About $150 a year more to keep than Texas (franchise tax $150).
- Has a state income tax, though it normally only reaches income connected to the state.
Texas against Arkansas
Advantages
- No yearly state fee (franchise tax report (no tax under threshold)), against about $150 a year in Arkansas.
- No state income tax on wages.
- A large economy, and a name that reads well on an invoice.
Disadvantages
- Costs $262 more to form than Arkansas.
- Slower approval: usually 3–5 business days.
Which one to choose
For the lowest cost over time, Texas: about $338 less over five years.
If speed matters most, Arkansas is usually approved sooner (1–3 business days).
If your company will have staff, an office or a warehouse in one particular state, form it there: otherwise you register in that state anyway. Federal taxes and IRS filings are the same in every state.
General information about the states, not legal or tax advice. State fees change occasionally; the price at checkout is the price you pay.
Arkansas or Texas
Questions about this comparison
Is a Arkansas or a Texas LLC cheaper?
Arkansas is cheaper to form: $130 all-in with us, against $392. Each year after, Arkansas costs the state about $150 and Texas about $0, plus $45 for the registered agent.
Which is faster, Arkansas or Texas?
Arkansas usually approves an LLC in 1–3 business days, Texas in 3–5 business days. We file within 48 hours of payment in either state.
Can a non-US resident form an LLC in Arkansas or Texas?
Yes, in both. Neither state asks for citizenship or residency, and the registered agent we include provides the in-state address. The EIN is included without an SSN.
Another pair