Arkansas Annual Franchise Tax

Last updated on

Arkansas LLC
Annual Franchise Tax Report

How to form an LLC in Arkansas
This Quick Start Guide is a brief overview of how to form an LLC in Arkansas.

Detailed Lessons:

 

Arkansas LLC costs:
State filing fee: $45 (one-time fee)
Annual fee: $150 (every year)

Need help?
Hire a company to form your Arkansas LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

All Arkansas LLCs (regardless of income or business activity) are required to file an annual report and pay a flat-rate tax of $150 every year.

Together, this $150 tax and the annual report are known as the Annual LLC Franchise Tax Report.

Method of Filing
Can be filed by mail or online, but we recommend filing online because it’s much faster and easier to fill out the application. It’s also processed by the state within 24 hours (as opposed to 2-6 weeks if filed by mail). You’ll also get a receipt by email after payment is made. No receipt is sent back if filed by mail.

Fee
$150

Due Date
May 1st every year, unless May 1st falls on a Sunday; then it’s due the next day.

Penalty
If you are late, you will be charged a $25 late fee, and interest will accrue daily. If you continue to ignore this requirement, the state will shut down your LLC.

Reminders
Reminders are sent to you each year in March. If you provided an email address when you filed your Articles of Organization, the state will also send an email reminder.

How early can someone file?
January 1st

Recommendation
We recommend filing online (reasons mentioned above), but you will find instructions below for both filing by mail and filing online.

Instructions for filing Arkansas Annual Franchise Tax by Mail

Fee: $150

Accepted Forms of Payment: Check or Money Order

Make Payable To: “Arkansas Secretary of State”

Mailing Instructions: Send your $150 fee, along with your Annual LLC Franchise Tax Report to:

Arkansas Secretary of State
Business and Commercial Services Division
P.O. Box 8014
Little Rock, AR 72203-8014

To Download the Annual Franchise Tax PDF Form:

If you need help finding your LLC’s Filing Number, you can search your LLC here, or call the state at 501-682-3409.

Instructions: Fill in sections 2, 4, and 5. Then date and sign at the bottom. The “Tax Preparer” in section 5 will be you. For further help filling out the Annual Franchise Tax PDF, you can reference our online instructions below as they are very similar.

Instructions for filing Arkansas Annual Franchise Tax Online

1. Visit the Business Entity Search page:
http://www.sos.arkansas.gov/corps/search_all.php

2. Enter your LLC name and click the “Search” button.

3. Click on the link for your LLC.

4. Click the “Pay Franchise Tax for this corporation” link at the bottom.

5. On the next page, you’ll notice your LLC’s File Number has been auto-filled. Enter your EIN Number and then click the “Show Available Filings” button.

6. You’ll now see the current year’s Tax Form (or more if you’re behind). Click the “Edit Form” icon/link to the right.

7. “1a – Tax Contact Information”
The “Tax Contact Person” is the person who is responsible for receiving the tax reminders and paying the Annual Franchise Tax on behalf of your LLC. This will most likely be yourself, so you’ll need to enter (or update if there have been changes) your contact information.

Since you will most likely be filling in the “First Name” and “Last Name” boxes, leave the “Business Name” box blank.

Enter your address, phone, and email. Then enter your LLC’s EIN Number (if it’s not filled in already).

8. “1b – Registered Agent”
If there are no changes to your LLC’s Registered Agent, skip this step and leave the box unchecked.

If you are changing your LLC’s Registered Agent, check this box off and enter the new Registered Agent information.

9. “2 – Members/Managers”
At the top, check off whether your LLC is member-managed or manager-managed. This should match what you entered when you filed your Articles of Organization.

Most LLCs are member-managed, meaning the LLC owners take part in the day-to-day operations of the business.

If you are not sure if your LLC should be member-managed or manager-managed, please read this article.

Then add the name (or business name) of each of your LLC’s members or managers.

Make sure to designate each person as a “member” or “manager” by using the drop down list on the left.

In the “Tax Preparer” box, fill in the “First Name” and “Last Name” boxes (leave “Business Name” blank). I know the word “tax preparer” can make it sound like you’re an accountant, but that’s not what is is. It’s simply the person responsible for filing the Annual Franchise Tax Report for your LLC.

10. “3 – Signature”
Type your full name in the “Signature” box and check off the box agreeing to the terms. Then click the “Next” button at the bottom.

11. You will be taken back to the start page, but this time the form is ready for submission. Just click the “Next” button to proceed.

(If you see another page with late fees, you’ll need to click the “Next” button again.)

12. Select your method of payment and click “Continue”.

13. Enter your contact and billing information. An additional $3-$5 processing fee will be added to your total. Click the “Confirm” button to submit your payment.

Congratulations, your Annual LLC Franchise Tax Report has been filed for processing!

On the next page you will be able to download/save your receipt. Your receipt will also be emailed to you. We recommend printing this receipt and keeping a copy with your business records.

There is nothing else you need to do after making payment. Just make sure to file & pay your Annual Franchise Tax Report each year going forward.

Arkansas Secretary of State Contact Info

If you have any questions about your LLC’s Annual Franchise Tax, you can contact the Arkansas Secretary of State:

501-682-3409 (phone)
888-233-0325 (toll-free phone)
[email protected] (email)
(response time is faster by phone)

Matt Horwitz
Founder & Educator, LLC University®
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.
Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

2 Comments

  1. Michelle April 25, 2018

    I am so very novice to all of the LLC paperwork etc. I feel very stupid at the moment. I went online as instructed. I had to look up my file number and typed in my Tax Id. I was then directed as it states to the correct page and had to re-enter my tax id which the first two digits I entered as 81 instead of 82 w/out notice. I paid online. I am now finding I must complete the Annual LLC Franchise Tax Report 2018 PDF and mail in marked “Amended” at the top. I completed line 1. Business Name and Adress. in 2. I only wrote in my Federal Tax Id. I filled in 6. signed the bottom. Do I need to complete the entire form or is what I completed sufficient. This will be the first year I had to do this being I started my LLC last May 2017.

    reply
    • Matt Horwitz April 29, 2018

      Hi Michelle, bummer on that. I’m not 100% on the procedure here, so I recommend calling Business and Commercial Services. Hope you get to the bottom of it. Thanks for your understanding.

      reply

Leave a comment or question

Comments are temporarily disabled.