LLC Guide

Arkansas waives formation fees, but not for being a veteran

The statute that zeroes out business formation fees is real. It is means-tested on public assistance and income, and veteran status is not on the list. What veterans do get is a certification with a reserved share of state spending behind it.

By Edmond Hui · Last updated: August 2026

Arkansas does not discount LLC filing fees for veterans — the fee is $50 for everyone — but Arkansas does run its own Certified Minority Business Enterprise (CMBE) - service-disabled veteran category. See the sources below.
Edmond Hui

Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.

Affiliate disclosure: We may earn a commission at no extra cost to you.

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Arkansas charges veterans the standard $50 to file a Certificate of Organization, because the state's formation fee waiver under Ark. Code Ann. § 4-25-110 is means-tested rather than veteran-based.

Section 4-25-110 waives the initial filing, permit, and licensing fees associated with forming a business for applicants who meet the requirements of the Workforce Expansion Act of 2021. That Act's eligibility list is about financial need: enrolment in Medicaid, SNAP, WIC, TANF, or Lifeline, approval for unemployment within the last twelve months, or household income at or below a federal poverty guideline multiple. A veteran can absolutely qualify, but as a low-income applicant like any other Arkansan, not as a veteran. Aggregator sites that file § 4-25-110 under 'veteran benefits' have simply gotten it wrong.

What a Veteran Pays to Form an LLC in Arkansas

Standard state filing fee$50
What a veteran pays today$50
Veteran-specific saving$0 — no veteran discount on this fee
State veteran-owned business certificationCertified Minority Business Enterprise (CMBE) - service-disabled veteran category

Verified August 6, 2026 against Arkansas primary sources — listed at the end of this guide.

Why Arkansas Has No Veteran LLC Fee Waiver

The Secretary of State's LLC fee schedule, issued under Act 1041 of 2021 and revised in December 2024, lists the Certificate of Organization at a single price with no veteran category anywhere on it. While you are there, note a smaller discrepancy that trips people up: the lower figure repeated across the internet is the discounted rate the Secretary of State's online filing system charges, and it does not appear on the published fee schedule at all. Neither number moves for veterans. On § 4-25-110, be exact with yourself, because the difference decides whether you file for free. The statute says the fees 'shall be waived for applicants who meet the requirements in the Workforce Expansion Act of 2021.' It does not say veterans. The Department of Labor and Licensing's implementation of Act 725 of 2021 publishes the qualifying list, and every item on it is a means test. If you are a veteran currently on SNAP or approved for unemployment in the last year, look at this seriously, because it is worth real money and nobody is going to tell you about it. If you are a veteran with an income, it is not for you. Ongoing, Arkansas LLCs owe the annual franchise tax administered by the Department of Finance and Administration under Ark. Code Ann. § 26-54-104. We located no veteran exemption to it, though we did not primary-verify the franchise tax rules for this page.

Authority: No veteran exemption found. The Arkansas Secretary of State 'Limited Liability Company Filing Fees (Under Act 1041 of 2021)' schedule, Rev. 12/24, lists the Certificate of Organization at $50.00 with no veteran category. Arkansas does waive business formation fees under Ark. Code Ann. § 4-25-110, but eligibility is means-tested under the Workforce Expansion Act of 2021 and is not based on veteran status.sos.arkansas.gov

Veteran-Owned Business Certification in Arkansas

ProgramCertified Minority Business Enterprise (CMBE) - service-disabled veteran category
Administered byArkansas Economic Development Commission, Division of Minority and Women-Owned Business Enterprise, jointly with the Office of State Procurement, Department of Finance and Administration
Minimum veteran ownership51%
Service-connected disability requiredYes
State contracting goal2% (Ark. Code Ann. § 15-4-302)
  1. 1

    Confirm your service-connected disability designation

    Ark. Code Ann. § 15-4-303 requires designation as a service-disabled veteran by the U.S. Department of Veterans Affairs. Have your VA determination letter in hand before you start, because without it nothing downstream works. This is the step that disqualifies most applicants, and it is better to find out now than after you have assembled a file.

  2. 2

    Check the ownership and size tests against the rule

    The governing rule, 168.00.17 Ark. Code R. 004, sets the ownership threshold the certified firm must meet, along with an annual revenue ceiling of ten million dollars. Confirm your operating agreement actually reflects the ownership split you think it does. Membership percentages that were casual at formation become load-bearing at certification.

  3. 3

    Apply to the AEDC Division of Minority and Women-Owned Business Enterprise

    Certification as a Certified Minority Business Enterprise runs through the Arkansas Economic Development Commission's MWBE division, working jointly with the Office of State Procurement at the Department of Finance and Administration. The governing rule states no application fee, but we found no primary source affirmatively confirming it is free. Ask AEDC what the current cost is rather than assuming zero.

  4. 4

    Get visible to the buyers who have the goal

    Certification without registration with the Office of State Procurement gets you a certificate and no contracts. The reserved share under § 15-4-302 is a target that agency buyers are working toward, so make it easy for them to find you in the vendor system and in the certified directory.

  5. 5

    Calendar your recertification

    CMBE certification requires recertification every two years. Lapsing means dropping out of the certified directory, and re-entering costs you the time it takes to reassemble documentation you already submitted once. Put the date in your compliance calendar alongside your franchise tax deadline.

Program details verified against codes.findlaw.com.

State Benefits vs Federal Benefits — What Is Actually Different

Most of what gets published as “veteran LLC benefits in Arkansas” is actually federal, and identical in all 50 states. Three separate things get run together:

What it isWho runs itDoes it make forming an LLC cheaper?
Filing-fee waiverArkansas Secretary of State, by statuteNot available in Arkansas
Veteran-owned business certificationArkansas Economic Development Commission, Division of Minority and Women-Owned Business Enterprise, jointly with the Office of State Procurement, Department of Finance and AdministrationNo — it helps you win contracts, not file paperwork
SBA loans, VBOC counselling, VA benefitsFederal agenciesNo — and they are the same in every state

Certification is worth doing on its own merits, but it is not a discount on formation. If a page tells you Arkansasgives veterans a “free LLC” and then links you to a certification portal, it has conflated the first row with the second.

Free Help for Veteran Business Owners in Arkansas

The Arkansas Department of Veterans Affairs is the state office for service-related questions. For anything about certification, procurement, or the reserved share of the state goal, go straight to the AEDC Division of Minority and Women-Owned Business Enterprise, which administers CMBE jointly with the Office of State Procurement. They are the people who decide, so they are the people to ask.

Arkansas Department of Veterans Affairsveterans.arkansas.gov

Veteran Business Outreach Centers (VBOCs) are funded by the SBA and provide free business planning and formation counselling to veterans, service members and military spouses. Find your VBOC.

Forming the LLC Itself

Nothing about the formation process changes because you are a veteran — the forms, the registered agent requirement and the annual filing are the same. The full walkthrough lives in our Arkansas formation guide rather than being repeated here.

How to start an LLC in Arkansas

Sources

Chart comparing the standard Arkansas LLC filing fee with what a veteran actually pays to form an LLC, and the difference between the two.
What a veteran pays to form an LLC in Arkansas, against the standard filing fee. Source: Arkansas Secretary of State.

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