How to File LLC Taxes in Arkansas (2026)
A single-member Arkansas LLC reports its income on the owner's Form AR1000F. A multi-member LLC files Form AR1050. An LLC taxed as an S-corp or C-corp files Form AR1100S or Form AR1100CT instead.
Every LLC also owes the Arkansas Secretary of State an annual franchise tax, separate from these income tax filings. Sales tax and employer taxes can also apply. The federal rules behind each election are on the hub page.
Quick Summary
- Two agencies handle Arkansas LLC taxes. File income and pass-through returns with the DFA, and file franchise tax with the Secretary of State.
- Check your exact bracket on the DFA rate schedule before you file. Lower brackets apply below the top rate.
- Get a CPA to model the pass-through entity election before you file. The math depends on your ownership split.
Arkansas LLC Tax Summary
The table below summarizes which federal and state forms your Arkansas LLC files, based on how it's classified for tax purposes.
| LLC Type | Federal Form | State Form | Filed With | Filing Deadline & Tax Rate |
|---|---|---|---|---|
| Single-member LLC | Form 1040 Schedule C | None (report on owner's Form AR1000F) | Arkansas DFA | April 15; 3.9% top individual rate |
| Multi-member LLC | Form 1065 + Schedule K-1 | Form AR1050 | Arkansas DFA | April 15; up to 3.9% at the member level |
| S-Corp election | Form 2553 + Form 1120-S | Form AR1100S | Arkansas DFA | April 15; up to 3.9% at the shareholder level |
| C-Corp election | Form 8832 + Form 1120 | Form AR1100CT | Arkansas DFA | April 15; 4.3% top corporate rate |
| Franchise tax (all LLCs) | n/a | Annual LLC Franchise Tax Report | Arkansas Secretary of State | May 1; $150 flat |
Arkansas State Taxes by LLC Type
Arkansas LLCs are pass-through entities by default. The IRS and the Arkansas Department of Finance and Administration tax the members instead of the company. An LLC can instead elect S-corp or C-corp treatment for federal purposes. Arkansas follows that federal classification.
See our guide to how LLC taxes work for the federal mechanics behind each election. If you haven't formed your company yet, see how to start an LLC in Arkansas before you pick a tax classification.
1. Single-Member LLC
A single-member LLC has no separate Arkansas business return. The owner reports the LLC's profit or loss on their own Form AR1000F (or Form AR1000NR for nonresidents) alongside federal Schedule C, and pays state income tax at the same individual rates covered below.
2. Multi-Member LLC
2. Multi-Member LLC
A multi-member LLC is taxed as a partnership. It files federal Form 1065 with Schedule K-1s for each member. It also files Arkansas Form AR1050, the state partnership return, by April 15 for calendar-year filers.
Each member then reports their share on their own AR1000F. Arkansas taxes that income at the individual rates, which top out at 3.9% on net income and 1.95% on net capital gains, effective for tax years starting in 2024 [1].
3. LLC Taxed as an S-Corp
3. LLC Taxed as an S-Corp
To be taxed as an S-corp, the LLC first makes the federal election with IRS Form 2553. Since 2018, Arkansas hasn't required its own state election on top of that.
A federal S-corp must also file as an Arkansas S-corp, using Form AR1100S. Shareholders report their share of income on their own AR1000F, and the LLC itself skips the state's corporate income tax because its income still passes through to the owners.
4. LLC Taxed as a C-Corp
4. LLC Taxed as a C-Corp
An LLC can elect C-corp treatment federally with IRS Form 8832. The company then files its own return instead of passing income through to members, and it pays the 21% federal corporate income tax.
In Arkansas, that means filing Form AR1100CT by April 15 for calendar-year filers too. The state's corporate income tax is graduated, and its top rate has been 4.3% on net income over $11,000 since the 2024 tax year [2].
Federal Taxes Arkansas LLC Owners Pay
Beyond the state forms above, Arkansas LLC owners still owe the standard federal taxes on any income the LLC passes through to them. Your tax bracket, deductions and filing status determine the final federal bill, and the hub page covers those federal rules in full.
Federal Self-Employment Tax
Federal Self-Employment Tax
If you're an active member of a pass-through LLC, you owe federal self-employment tax on your share of the earnings, at a rate of 15.3% for Social Security and Medicare. Arkansas doesn't levy a separate state self-employment tax on top of that.
Most LLC owners also make quarterly estimated payments. The due dates are April 15, June 15, September 15 and January 15, and Arkansas expects its own estimated payments on the same schedule whenever you owe state income tax on the LLC's earnings.
Other Arkansas Taxes That May Apply
A few more Arkansas taxes can apply on top of income tax, depending on what your LLC does. That list includes sales tax, employer taxes and unemployment insurance.
1. Annual Franchise Tax
Every Arkansas LLC owes a flat $150 franchise tax each year, whether or not it made money. Pay by May 1 to avoid a penalty plus interest on top.
This filing doubles as Arkansas's version of an Arkansas LLC annual report. For the full picture of state fees, see the cost of forming an LLC in Arkansas.
2. Sales and Use Tax
2. Sales and Use Tax
If your LLC sells taxable goods or services in Arkansas, register with the DFA before you start collecting. Use Form AR-1R and the Arkansas Taxpayer Access Point for your initial registration.
The statewide sales and use tax rate is 6.5%, and most cities and counties add their own local rate on top.
3. Employer Withholding Tax
3. Employer Withholding Tax
Every Arkansas employer withholds state income tax from employee paychecks, using the same Form AR-1R to register with the DFA. Withholding deposits are due monthly on Form 941M.
4. Unemployment Insurance Tax
4. Unemployment Insurance Tax
Once you hire employees, register with the Arkansas Division of Workforce Services for unemployment insurance. You then pay the tax on the first $7,000 of each employee's wages.
New employers pay a 2.0% rate, and established employers pay anywhere from 0.200% to 10.100% based on their claims history [3].
Arkansas Pass-Through Entity Tax (PET) Election
Arkansas lets partnerships and S-corps pay state income tax at the entity level, instead of passing it through to each owner. It's mainly a workaround for the federal cap on deducting state and local taxes [4].
Owner members holding more than 50% of the voting power must agree to make the election. Filing options include mailing Form AR362-E or registering through the Arkansas Taxpayer Access Point before your extended filing deadline.
The entity then files Form AR1100PET by April 15 for calendar-year filers. It pays at the same individual income tax rates covered in the Multi-Member LLC section above.
What Is Deductible for an Arkansas LLC
An Arkansas LLC can claim several state credits on Form AR1000TC, the Schedule of Tax Credits and Business Incentive Credits [5]. The Tuition Reimbursement Tax Credit covers 30% of what a business pays toward an employee's college costs.
That credit is capped at 25% of the business's tax liability for the year. Businesses that install qualifying waste reduction, reuse or recycling equipment can claim a separate credit. It's worth 30% of the equipment's cost.
Employers running a qualifying child care program for staff have their own credit too. The federal qualified business income deduction under IRC §199A is a federal-only benefit, so check with a CPA on how it interacts with your Arkansas return.
FAQs
Do I Need to File an Arkansas Annual Franchise Tax Report?
Yes, every Arkansas LLC files an annual franchise tax report with the Secretary of State, even if the company had no income. You can file and pay it online at sos.arkansas.gov.
Do Sole Proprietors Pay Annual Franchise Tax in Arkansas?
No, sole proprietors don't pay Arkansas franchise tax. That tax applies to registered entities like LLCs and corporations. A sole proprietor just reports business income on their personal return instead.
What Happens if You Don't Pay Franchise Tax in Arkansas?
If you don't pay Arkansas franchise tax, the state adds a penalty plus interest to the $150 due.
Does Arkansas Require a Separate State S-Corp Election?
No, Arkansas doesn't require a separate state S-corp election. That requirement ended for tax years beginning on or after January 1, 2018. A federal S-corp election on IRS Form 2553 now carries over automatically.
References:
- https://www.dfa.arkansas.gov/wp-content/uploads/2025_TaxBrackets.pdf
- https://www.dfa.arkansas.gov/office/taxes/income-tax-administration/corporation-income-tax/
- https://dws.arkansas.gov/workforce-services/unemployment/employer-ui-information/employer-ui-contributions/
- https://www.dfa.arkansas.gov/wp-content/uploads/AR1100PET_Instructions_2025_1.pdf
- https://www.dfa.arkansas.gov/office/taxes/other-taxes/tax-credits-special-refunds/business-incentives-and-credits/
