Arkansas LLC Annual Franchise Tax Report
Arkansas LLCs are required to file Annual Franchise Tax Reports.
Under Section 26-54-104 of the Arkansas Corporate Franchise Tax Act, all Arkansas LLCs must file an Annual Franchise Tax Report and pay a flat-rate tax of $150.
The $150 tax is required regardless of your income or business activity.
To maintain compliance and keep your LLC in good standing with the state, the Annual Franchise Tax Report must be filed each year.
✎ Note:
Most states require an LLC Annual Report to be filed each year. In Arkansas, this report is known as the Annual Franchise Tax Report. There is no separate “annual report” for an Arkansas LLC.
What is the purpose of the Arkansas Franchise Tax?
The Arkansas LLC Franchise Tax is considered a privilege tax. This means there is a flat fee of $150 each year to operate a business in the state. The tax helps generate revenue for the State of Arkansas.
The $150 tax is required annually (starting the year after your LLC is formed), regardless of whether your LLC generates any income or has any business activity.
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How much is the Arkansas LLC Annual Franchise Tax?
The Arkansas LLC Annual Franchise Tax is a fixed fee of $150 each year.
When is the Arkansas LLC Annual Franchise Tax Report due?
The Arkansas LLC Annual Franchise Tax Report is due annually by May 1st.
When is the Initial Annual Franchise Tax Report Due?
Your LLCs first Annual Franchise Tax Report is due the year following your LLCs effective date, which is the date your LLC was officially approved. In Arkansas, this is referred to as the Date Filed.
To determine your Arkansas LLC's Date Filed:
- Check the approved version of your Arkansas LLC Articles of Organization.
- Use the Arkansas Business Entity Search to find your LLC's name, click on it, and locate the "Date Filed" information.
For example, if your LLC was established on January 10, 2024, your first Annual Franchise Tax Report will be due by May 1, 2025.
For example: For an LLC established on November 22, 2024, the initial Annual Franchise Tax Report is due by May 1, 2025.
For example: For an LLC established on July 1, 2025, the first Annual Franchise Tax Report should be filed by May 1, 2026.
How Early Can I File an Arkansas LLC Franchise Tax Report?
You can begin filing your LLC Annual Franchise Tax Report as early as January 1 each year.
However, your initial Franchise Tax filing period begins the year following the approval of your LLC.
Will My LLC Receive a Reminder for the Annual Franchise Tax Report?
Postcard reminders for the Franchise Tax Report are sent out every January to the LLC's designated Contact Person.
This information was provided when your Articles of Organization were filed with the state.
If the Contact Person provided an email address in the Articles of Organization, they will also receive an email reminder in January.
State reminders are merely a courtesy and do not absolve you of the responsibility to file and pay your LLC's Franchise Tax annually, even if you do not receive a reminder.
To keep track of your obligations, set a recurring reminder on your phone or computer, or use a visible note to make sure you remember to file and pay your LLC's Franchise Tax every year.
Are there penalties for failing to file the Annual Franchise Tax Report and pay the $150 fee for my LLC?
Yes, there are several penalties for not filing the LLC Annual Franchise Tax Report.
Penalty and interest:
Your LLC will incur both a penalty and interest for late filings or failure to file. The penalty for late or missing filings is a one-time fee of $25, with interest accruing at a rate of 10% per year on the total outstanding balance.
Revoking the LLC’s business charter
If your LLC repeatedly neglects the Annual Franchise Tax Report requirement, the state will issue a final notice known as the Notice of Subject to Forfeiture.
If the Annual Franchise Tax Report remains unfiled, the state will revoke the LLC's corporate charter and authority, effectively stripping the LLC of its powers, rights, and legal protections.
The LLC can’t file documents & Members can’t form another LLC:
If your LLC has overdue Franchise Tax, it will be unable to make any filings with the Arkansas Secretary of State.
Moreover, LLC Members, LLC Managers, LLC Officers, or anyone substantially connected with the LLC will be prohibited from forming a new Arkansas LLC or registering a foreign LLC in the state.
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Filing Methods for Annual Franchise Tax Reports
Arkansas LLC Annual Franchise Tax Reports can be submitted either online or by mail.
The flat-rate tax of $150 remains unchanged regardless of the filing method you select.
How to File the Arkansas Annual Franchise Tax Online
To begin:
- Go to the Business Entity Search page.
- Enter your LLC’s name and click “Search.”
- Select the link for your LLC.
- Scroll to the bottom and click the “Pay Franchise Tax for this corporation” link (even though it says “corporation,” this is the correct link for LLCs).
Enter your File Number:
This field should be auto-filled in light gray.
Enter your Federal Tax ID:
Input your LLC’s EIN. If your LLC does not have an EIN, enter nine zeroes.
Show Available Filings:
Click the “Show Available Filings” button.
You will now see the tax form for the current year. Click the “Edit Form” icon/link located on the far right.
Tax Person's Contact Information
The Tax Contact Person handles receiving tax reminders and paying the Annual Franchise Tax for your LLC.
Typically, individuals list themselves in this role. Review the details and make any necessary changes or updates.
Since you are entering a person's name, you can leave the Business Name field blank.
Registered Agent
If you do not need to update your LLC's Arkansas Registered Agent, you can skip this step and leave the box unchecked.
If you want to change your Arkansas Registered Agent, check the box and enter the new Registered Agent information.
Important Details for Managers or Members:
If Managers are in charge of your LLC, select Managers. Choose Members to manage it if it's run by members. Next, provide each member or manager's name for your LLC.
Make sure to select the proper option from the dropdown menu on the left to indicate whether each person is a Member or a Manager.
Signature
Enter your full name in the Signature box and check the box to agree to the terms. Then click the Next button at the bottom.
You’ll be redirected to the start of the form, but it will now be ready for submission. Simply click the Next button to continue.
Choose your method of payment and click Continue.
Provide your contact and billing information. A processing fee of $3 to $5 will be added to your total. Click the Confirm button to complete your payment.
Congratulations! Your Annual LLC Franchise Tax Report has been successfully submitted.
On the following page, you'll be able to download or save your receipt. A copy will also be emailed to you. We suggest printing the receipt and keeping it with your business records for reference.
After making the payment, there’s nothing more required from you. Just remember to file and pay your Annual Franchise Tax Report each year moving forward.
Calendar reminder for next year
Be sure to set a calendar reminder for next year's Franchise Tax payment.
Arkansas Secretary of State Contact Info
If you have any questions about the Annual Franchise Tax, you can reach the Arkansas Secretary of State at 501-682-3409.
Their office hours are Monday through Friday, from 8 a.m. to 4:30 p.m. Central Time.