Arkansas Business Taxation
According to the Arkansas Secretary of State, “Arkansas state law requires all Corporations, LLCs, Banks, and Insurance Companies registered in Arkansas to pay an annual franchise tax. Failure to pay can result in the imposition of additional fees, penalties and interest, or even revocation of the authorization to do business." The franchise tax fee in Arkansas is $150. Franchise taxes are only one of several taxes Arkansas businesses must pay.
If you sell physical products or certain types of services, you may need to collect sales tax and then pay it to the Arkansas Department of Revenue. There is a single, statewide static tax rate of 6.5% in Arkansas. Arkansas has a payment plan for Arkansas state sales tax and businesses can choose to pay monthly or quarterly. Make your check or money order payable to the Department of Finance and Administration.
Personal income tax rates in Arkansas:
- 0.9% on the first $4,299 of taxable income
- 2.4% on taxable income between $4,300 and $8,399
- 3.4% on taxable income between $8,400 and $12,699
Corporations pay an annual flat franchise tax of $300, by mail or online, and fulfill annual reporting requirements.
All Arkansas LLCs pay a $150 annual Franchise Tax, due on the first day of May. LLC income and expenses are reported on tax forms AR1000F or AR1000NR. Unlike most LLCs, those who file Form 8832 must pay taxes at the corporate rate. The franchise tax keeps your LLC in good standing with the state.
Most small businesses should work with an accountant to determine their tax liability. Expect to pay at least $300 per year for a simple tax return. Speak to multiple accountants to ensure you meet all tax obligations.
Arkansas LLC Taxation
All Arkansas LLCs are subject to the Arkansas Franchise Tax. Also, any profit your LLC makes passes through onto the members of the LLC and will then be taxed as personal income. The two forms used for filing Arkansas Individual Income Tax returns are Forms AR1000F (for full year residents) and AR1000NR (for non-residents). Your LLC income and expenses are reported on Form 1040, Schedule C, E, or F.
If you prefer to file as a corporation, Form 8832 must be submitted. State Income Tax rates in Arkansas range from 1% to 6.5%.
We’ll explore the cost breakdown, pros and cons, and essential requirements for forming an LLC in Arkansas. The cost to form an LLC in Arkansas starts at $45. This covers the primary cost of officially registering your LLC with the state.
The annual $150 Arkansas franchise tax on LLCs is imposed for the privilege of doing business in the state. If your LLC has employees, you’ll have to file withholding taxes on their wages on a monthly basis and register to pay state unemployment taxes.
The Arkansas Secretary of State requires annual franchise tax reports. You may submit the annual franchise tax report online or download a form from the Arkansas Secretary of State’s website to file it. Each year by May 1, you must file an annual franchise tax report with the Arkansas.
Avoid Automatic Dissolution: If they fail to file one or more state forms, LLCs may be fined or even dissolved. In this case, LLC owners risk losing their limited liability protection.
Arkansas Tax Payment Options
Can I pay my Arkansas state taxes online?
Make same day Tax Deposits, estimated taxes, Offer in Compromise (OIC), or other types of payments. Go to EFTPS. Avoid a penalty by filing and paying your tax by the due date, even if you can’t pay what you owe.
For individuals and businesses: Apply online for a payment plan (including installment agreement) to pay off your balance over time. Fees apply. For more information on payment plans including streamlined, in-business trust fund express, guaranteed, and partial payment installment agreements refer to Tax Topic No. 202-Tax Payment Options.
If you cannot find the answer to your question using the IRS website, find out how to call the IRS or visit a local Taxpayer Assistance Center office in person. The IRS does not accept tax-related questions by email.
The information provided by the Paycheck Calculator provides general information regarding the calculation of taxes on wages for Arkansas residents only. It is not a substitute for the advice of an accountant or other tax professional. ZenPayroll, Inc., dba Gusto ("Gusto") does not warrant, promise or guarantee that the information in the Paycheck Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct or indirect consequence of its use.
By using the Paycheck Calculator, you waive any rights or claims you may have against Gusto in connection with its use. Arkansas payroll taxes.
Use our United States Salary Tax calculator to determine how much tax will be paid on your annual Salary. Federal tax, state tax, Medicare, as well as Social Security tax allowances, all taken into account and are kept up to date with 2023/24 rates.
For most paid TurboTax online and mobile offerings, you may start using the tax preparation features without paying upfront, and pay only when you are ready to file or purchase add-on products or services. Actual prices for paid versions are determined based on the version you use and the time of print or e-file and are subject to change without notice.
Online at www.AZTaxes.gov, taxpayers can pay their tax bill or make partial payments against their tax liability. However, if a taxpayer is having difficulty making a payment, he or she can seek a monthly installment plan on the Arizona Taxation website. Taxpayers who are on a payment plan are not permitted to incur any additional obligations.
Download a copy of your 1099 or 1042S tax form so you can report your Social Security income on your tax return. Your 2023 tax form will be available online on February 1, 2024. Download the tax form in your account, sign in, and view your tax form.