Overview of Arkansas Franchise Tax
Arkansas law requires LLCs registered in Arkansas to pay an annual $150 franchise tax to generate revenue. LLCs must file an Annual Franchise Tax Report yearly to stay compliant. If an LLC does not pay within three years, its status will be revoked.
Tax Rate and Filing Requirements
Depending on your company’s legal form, you might pay the corporation franchise tax, graduated corporate income tax, or neither. The franchise tax rate is generally based on the business’s size and type. For example, a small business may be taxed at 0.5%, while a large corporation at 2%. The tax is generally due annually but can be required quarterly or monthly depending on revenue.
Filing the Annual Franchise Tax Report
LLCs and PLLCs must file an Annual Franchise Tax Report and pay $150 each year. According to Section 26-54-104, all Arkansas LLCs must file this report and pay $150 regardless of income or activity. The report must be filed yearly to keep the LLC compliant and in good standing.