By Jake Lawson, LLC Formation Strategist
Arkansas keeps it simple when it comes to LLC annual requirements: pay $150 every year by May 1st, or face some seriously unpleasant consequences. No income calculations, no asset valuations, just a flat fee for the privilege of doing business in the Natural State.
I’ve helped dozens of Arkansas business owners stay compliant with this requirement, and the biggest mistake I see is treating it like an optional expense. It’s not. Miss this deadline, and Arkansas can revoke your LLC entirely—even if you’re making millions and paying tons of other taxes.
Let me walk you through everything you need to know about Arkansas’s Annual Franchise Tax Report, including how to avoid the penalties that can shut down your business.
What is Arkansas’s Annual Franchise Tax?
Arkansas calls it an “Annual Franchise Tax Report,” but it’s really just their version of an annual report with a $150 fee attached. Every other state has some version of this—Arkansas just bundles the compliance filing with the fee.
Key facts:
- Cost: $150 per year (flat rate, no exceptions)
- Due date: May 1st every year
- Purpose: “Privilege tax” for doing business in Arkansas
- Required for: ALL Arkansas LLCs, regardless of activity or income
Important note: This $150 is due whether your LLC made $10 or $10 million last year. It’s also due even if your LLC had zero activity. Arkansas doesn’t care—if you want to keep your LLC in good standing, you pay the fee.
When Your First Payment is Due
Your first franchise tax isn’t due until the year AFTER your LLC was approved. This trips up a lot of new business owners who think they need to pay immediately.
Here’s how it works:
LLC formed in 2024: First franchise tax due May 1, 2025
LLC formed in January 2025: First franchise tax due May 1, 2026
LLC formed in December 2025: First franchise tax due May 1, 2026
Pro tip: Put a recurring calendar reminder in your phone for April 15th every year. This gives you two weeks to file before the May 1st deadline.
The Real Cost of Missing the Deadline
Arkansas doesn’t mess around with delinquent franchise taxes. Here’s what happens if you miss the May 1st deadline:
Immediate Penalties
- $25 late fee (one-time charge)
- 10% annual interest on the entire outstanding balance
- Example: Miss the deadline by 6 months, and your $150 tax becomes $182.50
Long-Term Consequences
- Forfeiture notice: Arkansas sends a final warning if you continue to ignore the requirement
- Charter revocation: Your LLC loses all legal protections and authority to do business
- Filing restrictions: You can’t file ANY documents with the Secretary of State
- Formation restrictions: You and anyone “substantially connected” to your LLC cannot form new Arkansas entities
The bottom line: Missing a $150 payment can cost you your entire business. It’s not worth the risk.
Filing Your Arkansas Franchise Tax Report
Arkansas offers both online and mail filing options. Online is faster and easier, but both cost the same $150.
Option 1: File Online (Recommended)
Step 1: Find Your LLC
- Go to the Arkansas Business Entity Search
- Search for your LLC name
- Click on your LLC in the results
- Scroll down and click “Pay Franchise Tax for this corporation” (yes, it says corporation—that’s normal)
Step 2: Enter Your Information
- File Number: Should auto-populate
- Federal Tax ID: Enter your EIN (or 000000000 if you don’t have one yet)
- Click “Show Available Filings”
Step 3: Complete the Form
- Tax Contact Person: Usually yourself—the person responsible for tax reminders
- Registered Agent: Only update if you’re changing your registered agent
- Management Structure: Select “Members” if member-managed, “Managers” if manager-managed
- List Members/Managers: Add names and designate their roles
Step 4: Submit and Pay
- Electronic signature (type your full name)
- Choose payment method
- Pay $150 plus $3-5 processing fee
- Download and save your receipt
Processing time: Immediate confirmation, updates to your LLC record within 1-2 business days
Option 2: File by Mail
If you prefer paper filing:
- Download the current year’s LLC franchise tax form from the Arkansas Secretary of State website
- Complete the form by hand or computer
- Include a check for $150 payable to “Arkansas Secretary of State”
- Mail to:
Arkansas Secretary of State
Business and Commercial Services Division
PO Box 8014
Little Rock, AR 72203-8014
Processing time: 2-3 weeks for processing after they receive your filing
What Information You’ll Need
Before starting your filing, gather these details:
LLC Information:
- Your LLC’s exact legal name
- File number (from your Articles of Organization)
- Current registered agent information
- Federal Tax ID (EIN) if you have one
Management Information:
- Names of all current members (if member-managed)
- Names of all current managers (if manager-managed)
- Your management structure designation
Contact Information:
- Name and address of person responsible for tax matters
- Phone number and email address
Advanced Compliance Strategies
Setting Up Automated Reminders
Don’t rely on Arkansas to remind you. While they send courtesy notices in January, these can get lost or delayed.
My recommended reminder system:
- Primary reminder: April 1st (30 days before deadline)
- Secondary reminder: April 20th (urgent—file now)
- Use multiple methods: Phone calendar, email, physical calendar
Managing Multiple LLCs
If you own several Arkansas LLCs, each one needs its own $150 franchise tax payment.
Organization tips:
- Create a spreadsheet listing all your LLCs and their formation dates
- File all franchise taxes at the same time in early April
- Use the same tax contact person for all entities to simplify record-keeping
Registered Agent Changes
You can update your registered agent information as part of your franchise tax filing. This saves you from filing a separate registered agent change form.
When to do this:
- You’re switching registered agent services
- Your registered agent moved
- You want to change from a service to self-service (or vice versa)
Reinstatement After Revocation
If Arkansas revoked your LLC for non-payment, you can get it reinstated, but it requires more work and money.
Reinstatement process:
- Pay all past-due franchise taxes
- Pay all penalties and interest
- File a reinstatement application
- Pay additional reinstatement fees
Costs add up quickly: A two-year delinquency could cost $400+ in back taxes, penalties, and fees.
Prevention is cheaper: It’s always easier and less expensive to stay current than to catch up later.
Common Filing Mistakes to Avoid
Mistake #1: Using the Wrong EIN
Make sure you’re using the EIN that matches your LLC, not your personal SSN or another business’s EIN.
The fix: Double-check your EIN confirmation letter before filing.
Mistake #2: Incorrect Management Structure
Many LLC owners aren’t sure if they’re member-managed or manager-managed.
Quick check: Look at your Operating Agreement or Articles of Organization. If it doesn’t specifically say “manager-managed,” you’re probably member-managed.
Mistake #3: Forgetting About Address Changes
If you moved your LLC’s registered agent or changed your contact information, update it during your franchise tax filing.
The fix: Review all your contact information annually and update as needed.
Mistake #4: Last-Minute Filing
Filing on April 30th leaves no room for error if there are technical problems or missing information.
The fix: File by mid-April to avoid deadline stress.
Arkansas’s Brief Administrative Change (2021)
In 2021, Arkansas temporarily moved franchise tax collection from the Secretary of State to the Department of Finance and Administration, then moved it back to the Secretary of State within a few months.
Why this matters: You might find outdated information online referencing the DFA. Ignore it—the Secretary of State handles all franchise tax matters now.
Current authority: Arkansas Secretary of State, Business and Commercial Services Division
Franchise Tax vs. Other Arkansas Business Taxes
The $150 franchise tax is separate from other Arkansas business obligations:
What franchise tax covers:
- Annual compliance with Secretary of State
- Maintaining your LLC’s good standing
- Right to do business in Arkansas
What it doesn’t cover:
- Arkansas income taxes (if applicable)
- Sales tax registration and payments
- Employment taxes (if you have employees)
- Local business licenses
Bottom line: You might owe other taxes and fees beyond the $150 franchise tax.
Record-Keeping Best Practices
Save these documents:
- Franchise tax payment receipt
- Filed franchise tax report
- Email confirmations from Arkansas Secretary of State
- Bank statements showing payment
How long to keep records: At least 7 years, but I recommend keeping LLC formation and compliance documents permanently.
Storage tips: Scan paper documents and store digital copies in multiple locations (cloud storage, external drive, etc.)
When to Get Professional Help
DIY Territory
- Single LLC with simple structure
- No changes to registered agent or management
- Comfortable with online government systems
Consider Professional Help
- Multiple LLCs requiring coordination
- Recent changes to business structure
- Missed deadlines requiring reinstatement
- Uncertainty about management structure designation
Professional service costs: Expect to pay $50-150 for someone to handle your franchise tax filing. For a simple $150 obligation, this might not be worth it unless you’re managing multiple entities.
Your Arkansas LLC Compliance Calendar
January
- Watch for courtesy reminder from Arkansas (but don’t rely on it)
- Review your LLC information for any needed updates
March
- Begin gathering information for franchise tax filing
- Confirm your current registered agent and management structure
April 1-15
- File your franchise tax report
- Update any business information that changed during the year
- Set next year’s calendar reminders
May 1
- Franchise tax deadline—don’t wait until the last minute
Throughout the year
- Keep good records of business changes
- Update registered agent if needed
- Maintain current contact information with Arkansas
The Bottom Line on Arkansas Franchise Tax
Arkansas’s Annual Franchise Tax is one of the simpler compliance requirements you’ll face as a business owner. It’s a flat $150, due the same time every year, with clear consequences for non-compliance.
Key takeaways:
- Always file by May 1st (don’t wait for reminders)
- The $150 fee is due regardless of business activity or income
- Missing deadlines can cost you your entire LLC
- Online filing is faster and easier than mail
- Set up recurring calendar reminders to avoid forgetting
Most importantly: This is a mandatory cost of doing business in Arkansas. Budget for it annually and treat it as seriously as any other business obligation.
Ready to Keep Your Arkansas LLC Compliant?
The franchise tax is just one piece of maintaining your Arkansas LLC in good standing. From formation through ongoing compliance, staying on top of requirements protects your business and personal assets.
Need help with Arkansas LLC compliance? Our comprehensive guides cover everything from formation requirements to ongoing obligations like franchise taxes and registered agent management.
Planning your Arkansas business strategy? We help entrepreneurs understand the full picture of Arkansas business requirements and develop compliance systems that scale with growth.
Jake Lawson has guided over 1,200 entrepreneurs through business formation and compliance across all 50 states. His Arkansas expertise comes from 15+ years of helping business owners navigate state-specific requirements like franchise taxes, registered agent obligations, and compliance management. This information is for educational purposes only and should not replace professional legal or tax advice.