Arkansas Franchise Tax and Annual Report for LLCs: $150 Due May 1, No Extensions, $25 Late Penalty Plus Interest and Revocation
Arkansas Franchise Tax and Annual Report for LLCs: $150 Due May 1, No Extensions, $25 Late Penalty Plus Interest and Revocation
Every Arkansas limited liability company has to file an annual report and pay the franchise tax each year, and the deadline does not move. The Arkansas LLC annual report is due on or before May 1, it costs $150, and Arkansas does not grant extensions. Miss the date and you owe a $25 penalty plus interest, and an entity that stays delinquent can be revoked. This guide covers what the filing is, when your first report is due, how to file and pay, and what to do if the form never shows up.
Informational notice: This article is general information, not legal or tax advice. Arkansas rules can change, and your situation may call for guidance from an attorney or a certified public accountant (CPA). Confirm current requirements directly with the Arkansas Secretary of State before you file.
What the Arkansas LLC Annual Report Is
In Arkansas, the recurring filing for an LLC is the Annual LLC Franchise Tax Report. You file it with the Arkansas Secretary of State, Business and Commercial Services Division, and you pay the $150 franchise tax with it. The report is the only recurring state filing most LLCs need to track at the Secretary of State, so it is worth putting on a calendar the day you form.
Two terms matter here. First, the formation document is the Certificate of Organization (Form LL-01). When you file it, you also file the franchise tax registration (Form FT-11) with it. Second, Arkansas uses the term registered agent for the contact the state requires every entity to maintain. Your registered agent is the person or business that receives legal papers and official notices for your company.
The annual report and the franchise tax are one filing, not two. Arkansas does not charge a separate fee for the report itself. The $150 is a flat franchise tax that applies to every LLC, and a professional limited liability company (PLLC) pays the same $150.
The $150 Fee and the May 1 Deadline
The report is due on or before May 1 each year, and it covers the year ending December 31 of the prior calendar year. The key facts are below.
| Item | Arkansas LLC Detail |
|---|---|
| Filing | Annual LLC Franchise Tax Report |
| Fee | $150 flat franchise tax |
| Due date | On or before May 1 each year |
| Period covered | Year ending December 31 of the prior calendar year |
| Extensions | None |
| Late charge | $25 penalty plus interest |
| Online card payment | $5 processing fee (paper filings have no fee) |
| Filing office | Arkansas Secretary of State |
Your First Report: A Timing Example
Your first report is due May 1 of the year after you form, not on May 1 of the year you form. Suppose you file your Certificate of Organization in March 2026. Nothing is due on May 1, 2026. Your first Annual LLC Franchise Tax Report is due on or before May 1, 2027, and it covers the calendar year 2026. Each year after that, the cycle repeats: the report due May 1, 2028 covers 2027, and so on.
Put the date in your calendar with a reminder in mid-April. The Secretary of State lists anticipated processing of 3 to 5 business days for all filings, whether mailed, dropped off or submitted online. A filing that goes in on April 30 might not be processed by May 1, so file well ahead of the deadline.
Who Must File and Who Is Exempt
Most LLCs and PLLCs owe the report. Arkansas Code Section 26-54-102 exempts two groups: tax-exempt nonprofit organizations and entities governed by the Uniform Partnership Act. If you believe your entity falls into one of those groups, confirm the exemption with the Secretary of State before you skip a year. Skipping a filing on a guess is the mistake that leads to revocation.
If your business is a corporation rather than an LLC, the rules are different. Corporations file the Annual Corporation Franchise Tax Report, also due on or before May 1. The minimum tax is $150, or 0.3 percent of outstanding capital stock (outstanding capital stock multiplied by .003) if that is greater. Corporations without stock pay $300. Late corporate filings carry the same $25 penalty plus interest.
How to File and Pay
You can file online through the Secretary of State's franchise tax portal at https://sos-franchise.ark.org/, or file on paper with the Secretary of State. Paper filings carry no processing fee. Online card payments add a $5 processing fee, so budget $155 if you pay that way. For the current forms and payment instructions, check the Secretary of State's Business and Commercial Services page at https://www.sos.arkansas.gov/business-commercial-services-bcs/.
For an in-person drop off, the Secretary of State's Business Services FAQ states a 48 hour turnaround. The Secretary of State does not publish an expedited filing service or an expedite fee for business entity filings, so do not plan around a rush option. Work backward from May 1 and allow the full processing window.
Follow these steps each year:
- Look up your entity in the business search at https://www.sos.arkansas.gov/corps/search_all.php and confirm the name and status on the record match your files.
- Confirm your registered agent is still in place at a street address in Arkansas.
- Complete the report and prepare the $150 payment, plus $5 if you pay online by card.
- Submit the filing well before May 1, leaving room for the 3 to 5 business day processing window.
- Save the confirmation and payment record with your company records.
What Happens If You File Late
A late report carries a $25 penalty plus interest. Under Arkansas Code Sections 26-54-107 and 26-54-114, interest accrues per day at 0.000274 of the tax plus $25. For a standard $150 LLC, that base is $175, so the daily interest is about $0.048. A 30 day delay adds roughly $1.44 in interest on top of the $25 penalty. The dollar amount is small. The real risk is revocation, covered next.
Treat that interest math as an illustration. Confirm the exact amount owed with the Secretary of State before you pay a late filing, since the figures on the account may differ from a simple calculation.
Revocation: The Real Cost of Missing the Date
An LLC that does not pay can be revoked under Arkansas Code Section 26-54-114. Revocation is the serious consequence of a missed year, and it carries three points you need to understand:
- The franchise tax keeps accruing after revocation until the entity is dissolved, withdrawn or merged. Revocation does not stop the bill.
- A revoked entity cannot make other filings with the Secretary of State. That includes routine changes you may need later, such as an amendment or a change of registered agent.
- The steps and costs to reinstate a revoked LLC are not covered in this guide. Confirm the process with the Secretary of State before you assume how it works.
The cheapest path is to file on time. A $150 report is far less expensive than untangling a revoked entity that cannot sign routine business filings.
No Extensions
Arkansas does not allow extensions for the annual franchise tax report. The no-extension rule comes from Acts 1046 and 1140 of 1991. Requesting more time does not move the May 1 deadline, so treat May 1 as the final date for every year, not a target.
If the Form Does Not Arrive
Do not count on the Secretary of State to remind you. If you have not received the annual report form by March 20, request it in writing from the Business and Commercial Services Division. Keep a copy of your request with your company records. A written request gives you a dated record that you asked for the form, which is useful if you later need to show what you did to comply.
Common Mistakes to Avoid
- Assuming an extension is available. Arkansas does not grant one.
- Using a P.O. Box for the registered agent. A P.O. Box is not an acceptable registered agent address, and an incomplete filing will be returned for correction.
- Sending the report to the wrong agency. The franchise tax report goes to the Secretary of State. The Department of Finance and Administration handles sales tax and withholding, not this report.
- Forgetting the $5 card fee. A card payment online adds $5, so a payment of exactly $150 may fall short.
- Waiting for a reminder. Set your own calendar date, since the form may not arrive on time.
Costs and Licenses Outside the Annual Report
The franchise tax report covers only the Secretary of State piece of your compliance. Arkansas has no general state business license, and it has no county business license. The Secretary of State does not issue business licenses. Other obligations come from other offices, and the rules are based on what your business does:
- Sales and use tax and withholding: Register through the Arkansas Taxpayer Access Point (ATAP) with the Department of Finance and Administration at this registration page. A business selling tangible personal property or taxable services needs a sales and use tax permit, which costs $50.
- Unemployment insurance: Employers register with the Division of Reemployment. Confirm the registration steps with that division before you hire.
- City licenses: Arkansas has 500 municipalities, and each city sets its own rules. Little Rock and North Little Rock use a base fee plus an employee-based charge, Bentonville runs a free registry, and Conway requires none. Confirm your city's requirements with city hall.
- Occupational licenses: Licensing is by agency or board. The Contractors Licensing Board, the Electrical Examiners and the HVAC/R Board sit in the Department of Labor and Licensing. The Department of Health licenses plumbers, cosmetologists, massage therapists and food establishments. The Alcoholic Beverage Control Division licenses alcohol sales, the Medical Marijuana Commission licenses cannabis businesses, and the State Police license security businesses and investigators.
Some of these fees and requirements change, and this list is not exhaustive. Confirm the exact cost and filing steps for each license with the agency that issues it.
Annual Compliance Checklist
- Calendar May 1 each year, with a reminder in mid-April.
- Confirm your entity record and status through the Secretary of State business search.
- Keep a registered agent with a street address in Arkansas. Do not use a P.O. Box.
- Pay $150, plus $5 if you pay online by card.
- Request the form in writing if it has not arrived by March 20.
- Confirm any exemption with the Secretary of State before you skip a year.
When to Get Professional Help
Routine annual reports rarely need outside help, but some situations do. If your entity has been revoked, if you are unsure whether an exemption applies, or if you are switching from an LLC to a corporation, talk with an attorney. If you need help with how the franchise tax, federal filings and any state income tax fit together, talk with a CPA. Both can give advice based on your facts, which this guide cannot do.
Official Resources
- Arkansas Secretary of State, Business and Commercial Services Division: https://www.sos.arkansas.gov/business-commercial-services-bcs/
- Corporations Online Filing System: https://www.ark.org/sos/corpfilings/index.php
- Business entity search: https://www.sos.arkansas.gov/corps/search_all.php
- Arkansas Department of Finance and Administration: https://www.dfa.arkansas.gov/
- Arkansas Small Business and Technology Development Center: https://asbtdc.org/
- U.S. Small Business Administration, Arkansas district: https://www.sba.gov/district/arkansas
Disclaimer: This is informational content, not legal or tax advice. Verify all fees, deadlines and procedures with the agency involved before you act, and consult a qualified attorney or CPA for your specific situation.