The short answer
It depends. Arkansas has trade-offs: Mandatory $150 franchise tax. For most founders, alternatives like Wyoming or your home state are simpler.
Three deciding questions
1. Do you live or operate in Arkansas?
If yes, form here. Out-of-state formation while operating in Arkansas costs double, not half.
2. What is the 5-year all-in cost?
$1,795 (filing + 5 × annual report + $50 registered agent + franchise minimums). This is the actual number to compare across states.
3. What are your three real requirements?
- Privacy: 4/10 (weak — members appear on public filings).
- Banking: 7/10 (workable but not premium).
- Cost: mid 5-year total.
Arkansas pros
- Very low filing fee
Arkansas cons
- Mandatory $150 franchise tax
Most common alternative
Wyoming for cost + privacy. Delaware for VC-backed startups. Your home state if you operate there. Run the 5-question quiz for a personalized shortlist.