How to File an LLC Annual Report in Arkansas? (Full Guide)
Filing an annual franchise tax report in Arkansas is a state requirement to keep your entity in the right standing with the Secretary of State.
To help you take the right steps, we teamed up with licensed business experts who've been in the LLC sector for more than a decade.
We spent the past four weeks poring over the Arkansas Secretary of State's website for the correct annual tax report filing information.
Here's a summary of everything you need to know about filing annual franchise tax reports in Arkansas.
Quick Summary
- All LLCs and corporations must file an annual franchise tax report with the state of Arkansas.
- The annual report deadline for Arkansas LLCs and corporations is May 1st.
- It takes 2-3 weeks to approve Arkansas annual reports submitted by mail and 24 hours for online submissions.
What Is an Arkansas LLC Annual Franchise Tax Report?
An Arkansas LLC annual franchise tax report is a privilege tax report that companies file to transact business in this state.
Many states refer to this document as the annual report, but it's called an annual franchise tax report in Arkansas.
An Arkansas franchise tax is a charge that businesses must pay to the state in exchange for the right to be incorporated or registered there.
A corporation receives personal liability protection for its owners as a registered business entity, as well as possible tax breaks, business brand protection, and other advantages.
The Arkansas state levies a charge in return for this protection, which is filed as the annual franchise tax report.
The Arkansas Corporate Franchise Tax Act mandates all LLCs and corporations transacting there to file their Arkansas franchise tax reports every year to stay compliant [1].
How to File an Arkansas Annual Report?
To file an Arkansas annual report, you must visit the Secretary of State's official website for the correct documents and file them online or by mail.
1. Online Filings
Follow these easy steps to file an annual report online:
- Visit the business entity search website.
- Enter your LLC or corporation name, fictitious name, registered agent name, state, and filing type, and click "search."
- Once the search is complete, your LLC name will pop up; click on it.
- On the next page, scroll down to select the "Pay Franchise Tax for this Corporation" option. Click on it.
- Proceed to fill out the details, including your entity number and federal ID.
- Complete the process by sharing your billing information and paying the required filing fee. (There's a $ 3$ convenience charge for ACH and $5 for online credit card payments).
Once you submit the annual franchise tax report, you'll receive a payment receipt in your email, and the state will examine your report and approve if everything is correct.
The typical processing period for online filings is 24 hours after payment is approved [2].
The online Arkansas annual report service is an effective way to submit your filing because you can set calendar reminders so you don't miss future deadlines.
2. Mail Filings
To file an annual report/franchise tax report by mail, you must:
- Visit the Arkansas Secretary of State's website to view annual reports and franchise taxes [3].
- Scroll the page to access the table at the bottom.
- Find "Limited Liability Company" and choose "PDF" next to the relevant year.
- Fill out the PDF form.
- Print out the form.
- Pay the filing fees with a money order or check.
Note that you should write the "Arkansas Secretary of State" on all the checks before mailing them.
Once you verify the details, complete the filing process and send the application and filing fees to the following:
Business & Commercial Services Division of the Arkansas Secretary of State
PO Box 8014
Little Rock, AR 72203-8014
The Arkansas Secretary of State takes 2-3 weeks to approve an LLC annual report submitted by mail, including mailing time.
3. Information Included in the Annual Franchise Tax Report
In Arkansas, the information included in the annual franchise tax report varies slightly depending on the type of business structure.
Here's the information needed for LLCs:
- Address and name of the company
- Name, address, phone number, and email of tax contact
- The location of the main office in Arkansas
- The federal tax ID number
- Name and location of the Arkansas registered agent service
- Management structure (whether the LLC is run by members or managers)
- Members' and managers' names
- The tax preparer's name
- Signatures of the responsible party
Here's what corporations include in their report:
- Address and name of the corporation
- Name, address, phone number, and email of tax contact
- The type of business
- The federal tax ID number
- The location of the main office in Arkansas
- When and where the company first obtained a license
- Legal name and business location of the corporation registered agent
- The titles and current names of corporate governors
- Official signature of the authorized person
Here's what corporations with stocks include in their franchise tax report:
- Address and name of the corporation
- Name, address, phone number, and email of tax contact
- The ID number for federal taxes
- The type of business
- The Arkansas principal address
- Registered agent information (including their business name and address)
- The titles and current names of corporate directors/governors
- When and when the company first obtained a license
- Total permitted capital stock number and value
- Amount of issued and outstanding capital stock
- Tax due calculation
- Signature of the corporate officer
4. Annual Report Due Dates
In Arkansas, the due date for the annual franchise tax report is May 1st each year, but you can start filing as early as January 1st.
For example, if your company began operating on February 12th, 2021, your first annual franchise tax will be May 1st, 2022.
If you fail to meet the Arkansas annual report deadline, your LLC or corporation will incur late fees of $25 (this amount must not exceed twice the original tax owed), plus a 10% interest every year the payment is past due.
The Arkansas Secretary of State allows you 60 days to file your Arkansas franchise tax requirements, and in case of a failure to do so, your entity's existence will be withdrawn.
Once your business structure undergoes administrative dissolution, you can no longer transact there.
The corporation, after that, loses the tax status and legal protections granted to the organization and its business operations.
How Much Is the Annual Report Filing Fee in Arkansas?
The annual report filing fee for LLCs in Arkansas is $150, and corporations without stocks pay $300 to file the Arkansas franchise tax report.
For Arkansas corporations with stocks, their annual franchise tax filing fees are calculated differently based on their assets and stocks.
To calculate your filing fee as a business owner:
- Start by dividing the total company's assets in Arkansas by the total company's assets in the United States.
- Multiply the outcome by the total value of stocks issued and outstanding capital.
- Multiply the result by 0.3%.
If the total amount you get is less than $150, you must pay a filing fee of $150. But if you get a total amount of more than $150, you must pay the full amount you get from the calculations.
Who Needs to File an LLC Annual Franchise Tax Report in Arkansas?
LLCs and corporations need to file an annual franchise tax report in Arkansas. Also, all banks and insurance companies registered at the Arkansas Taxpayer Access Point must pay a yearly franchise tax to the Department of Finance and Administration (DFA).
Related articles:
- How Much Does an LLC Cost in Arkansas
- How to Create an LLC in Arkansas
- Top LLC Formation Services in Arkansas
FAQs
Does Arkansas Have an Annual Report?
Yes, Arkansas has an annual report commonly known as the franchise tax report. This is a flat rate fee that corporations and LLCs pay annually to conduct business operations and commercial services there.
How Long Does It Take To Process an Annual Report in Arkansas?
It takes 24 hours to process an annual report in Arkansas if you file online. Arkansas annual report paper forms take 2-3 weeks to review and approve.
How Much Does It Cost To File an Annual Franchise Tax Report in Arkansas?
It costs $150 to file an annual franchise tax report in Arkansas for limited liability companies. Corporations without stocks pay $300 to file the Arkansas annual report, while the minimum amount for corporations with stocks is $150 or 0.3% of the total outstanding capital stock.
How Do I Pay Franchise Tax in Arkansas?
You pay franchise tax in Arkansas online on the Arkansas Secretary of State's website or by mail.
Do Sole Proprietors Pay Franchise Tax in Arkansas?
No, sole proprietors do not pay franchise tax in Arkansas. Revenues from this type of business structure are earned by the individual owner, who'll pay income taxes to the state.
Do You Need Help Filing Your Arkansas Annual Report?
An Arkansas franchise tax report allows you to continue your business operations without any legal hiccups with the state.
If you're planning to file your Arkansas annual report but don't know where to start, consider hiring IncFile LLC service to help you avoid costly blunders.
With their efficient annual report service, IncFile will complete your information on the documents and file it with the Arkansas Secretary of State before the deadline. Additionally, you'll get access to an online dashboard to monitor the documents and timely alerts to help you stay ahead of future legal filings.
