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

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.
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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 certification | Certified 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
| Program | Certified Minority Business Enterprise (CMBE) - service-disabled veteran category |
| Administered by | Arkansas 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 ownership | 51% |
| Service-connected disability required | Yes |
| State contracting goal | 2% (Ark. Code Ann. § 15-4-302) |
- 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
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
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
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
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 is | Who runs it | Does it make forming an LLC cheaper? |
|---|---|---|
| Filing-fee waiver | Arkansas Secretary of State, by statute | Not available in Arkansas |
| Veteran-owned business certification | Arkansas Economic Development Commission, Division of Minority and Women-Owned Business Enterprise, jointly with the Office of State Procurement, Department of Finance and Administration | No — it helps you win contracts, not file paperwork |
| SBA loans, VBOC counselling, VA benefits | Federal agencies | No — 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 Affairs — veterans.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.
Sources
Every figure on this page was checked against these primary sources on August 6, 2026.
- https://www.sos.arkansas.gov/uploads/bcs/LLC_Fees1.pdf
- https://codes.findlaw.com/ar/title-4-business-and-commercial-law/ar-code-sect-4-25-110.html
- https://labor.arkansas.gov/wp-content/uploads/ACT-725.pdf
- https://codes.findlaw.com/ar/title-15-natural-resources-and-economic-development/ar-code-sect-15-4-303.html
- https://codes.findlaw.com/ar/title-15-natural-resources-and-economic-development/ar-code-sect-15-4-302.html
- https://www.law.cornell.edu/regulations/arkansas/168-00-17-Ark-Code-R-004
- https://www.arkansasedc.com/community-resources/Minority-and-Women-Owned-Business-Enterprise-Resources
- https://www.veterans.arkansas.gov/

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