Arkansas LLC & Corporation
Annual Franchise Tax Requirements
Filing dates, statutory franchise tax fees, and submission protocols to preserve corporate good standing with the Arkansas Secretary of State.
Arkansas Annual Franchise Tax Overview
In the state of Arkansas, the recurring entity filing is officially administered as the Annual Franchise Tax Report. Under the Arkansas Corporate Franchise Tax Act, every domestic and foreign LLC, corporation, bank, and registered business trust must file this annual report with the Secretary of State Business and Commercial Services Division.
Submitting the report and payment keeps your entity active and legally protected. Failure to submit filings on time triggers an immediate late penalty, daily statutory interest, and eventually a forfeiture notice leading to charter revocation. When an entity is revoked, commercial rights, liability protections, and bank financing abilities are immediately compromised.
When is the Arkansas Franchise Tax Report Due?
Arkansas enforces a uniform statewide deadline: all annual franchise tax reports are due on or before May 1 each year. Unlike states that calculate deadlines based on your original formation month, Arkansas opens filing on January 1 and requires completion by May 1 for all active entities.
Statutory Filing Costs
What Happens If You Miss the May 1 Deadline?
Filing after May 1 results in an immediate $25 statutory late penalty added to your balance. In addition, Arkansas charges interest at a rate of 10% per year on the total outstanding amount until fully satisfied.
Continued failure to file leads the Secretary of State to issue a Notice of Subject to Forfeiture. If neglected, the state revokes your corporate charter and authority to conduct business. Reinstatement requires filing all past-due franchise reports, paying all back taxes, satisfying late penalties, and submitting formal reinstatement petitions.
How to File the Arkansas Franchise Tax Report
The Arkansas Secretary of State manages renewals online through its Business and Commercial Services portal. Digital filing provides immediate payment validation and prevents delays.
Information Required to Complete Your Filing:
- Exact registered entity name matching state records
- Arkansas Secretary of State filing number
- Current registered agent name and physical Arkansas street address
- Principal corporate office address and mailing address
- Names and addresses of LLC members, managers, or corporate officers
- Credit card or electronic check for the statutory fee
Step by Step Portal Filing:
- Navigate to the Arkansas Secretary of State business search portal.
- Search for your business by legal name or state entity filing number.
- Select your entity from the search results to open the record details.
- Click the option to Pay Franchise Tax for this entity.
- Review pre-filled details, update officer rosters, and verify mailing data.
- Pay the statutory $150 fee using a credit card or electronic check.
- Save the official payment confirmation number and downloaded receipt.
Frequently Asked Questions
Yes. The Arkansas franchise tax is a privilege tax for maintaining a legal entity in the state. The flat $150 fee is mandatory every year, even if your company had zero revenue, zero transactions, or inactive operations.
Yes. Paper forms can be downloaded from the Secretary of State website and mailed along with a $150 check payable to the Arkansas Secretary of State. Online filing is strongly encouraged to ensure instant confirmation prior to the May 1 cutoff.
You must update your registered agent information promptly. In Arkansas, failure to maintain an active registered agent with a valid physical street address can trigger administrative revocation separate from franchise tax defaults.
Yes. Single member LLCs pay the exact same flat $150 franchise tax rate as multi member entities. The state does not adjust statutory rates based on the number of members.
To avoid accumulating future $150 annual assessments and penalty fees, submit formal Articles of Dissolution with the Secretary of State before the upcoming calendar year begins. Simply walking away leaves your entity listed as revoked in public directories.
In addition to annual franchise tax compliance, Arkansas insurance producers and agencies must track Arkansas Insurance Department biennial license renewals and 24 hours of continuing education.
View Arkansas Insurance Licensing & CE Guide →