Arkansas LLC Annual Report and Franchise Tax (2026)

Q: When is the Arkansas Annual Franchise Tax Report due?

The Annual Franchise Tax Report and the $150 tax are due May 1 each year, filed with the Arkansas Secretary of State. Filing late triggers penalty and interest under state law, and a prolonged failure to file can lead to revocation of the LLC's good standing.

Q: What happens if I miss the Arkansas franchise tax deadline?

A late report accrues a penalty and interest set by statute, and the balance keeps growing until you file and pay. Continued nonpayment can cause the Secretary of State to revoke your LLC's good standing or charter, which blocks financing, contracts, and license renewals until you reinstate.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

In Arkansas, the LLC annual report is the Annual Franchise Tax Report, filed with the Arkansas Secretary of State. Every LLC pays a flat $150 franchise tax due May 1 each year, filed online. Arkansas has no separate entity-level income tax on LLCs; profits pass through to the members, who report them on their Arkansas returns.

Quick Answer

Filing name: Annual Franchise Tax Report (the annual filing)
Agency: Arkansas Secretary of State
Franchise tax: Flat $150 for LLCs, per year
Due: May 1 each year
Filing method: Online via the Secretary of State franchise tax portal
Late: Penalty + interest; eventual revocation of good standing

What the Arkansas Annual Report Is

Arkansas does not use a stand-alone "annual report" the way many states do. Instead, the yearly filing that keeps your LLC alive is the Annual Franchise Tax Report, filed with the Arkansas Secretary of State. This single document both confirms your entity's basic information and carries the state's flat franchise tax, so in Arkansas the franchise tax report is the annual report. Filing it on time keeps your LLC in good standing, which banks, landlords, and licensing boards routinely check. It is a core ongoing duty of running an Arkansas LLC.

The distinction matters because searching for an Arkansas "annual report" can send you to the wrong page. The Secretary of State labels the filing a franchise tax report throughout its system, and the rules live in the Arkansas Corporate Franchise Tax Act rather than in the LLC statute alone. Every for-profit LLC and corporation registered in Arkansas owes the franchise tax and files the report on the same footing, regardless of whether the business had any income during the year. Knowing the correct name helps you find the right filing and avoid missing a deadline that has real consequences. If you are still deciding on a structure, compare the options in what an LLC is and S-corp vs LLC.

The $150 Franchise Tax

The Arkansas LLC franchise tax is a flat $150 per year, set by statute in the Arkansas Corporate Franchise Tax Act. Unlike some states that scale the tax to capital or revenue, the LLC amount is fixed: a brand-new one-member LLC and a large multi-member LLC pay the same $150. The tax is paid together with the Annual Franchise Tax Report, and there is a small online-processing fee when you file and pay electronically. Because statutory amounts and any processing fees can change, confirm the current figure on the Secretary of State's franchise tax page before you pay. For how this fits your broader budget, see Arkansas LLC cost and the national cost of an LLC.

When It Is Due: The May 1 Deadline

The Annual Franchise Tax Report and its $150 tax are due May 1 each year. Unlike Colorado's anniversary-month window, Arkansas uses a single statewide deadline: every LLC files by the same May 1 date regardless of when it was formed. An LLC formed in the prior calendar year generally owes its first franchise tax report the following May 1, so a company organized late in the year should budget for the tax soon after it starts. Filing early in the year is the safest habit, and the Secretary of State's online system is available well before the deadline.

Item	Detail
Filing	Annual Franchise Tax Report
Due date	May 1 each year
Franchise tax (LLC)	$150 flat
Where to file	Arkansas Secretary of State franchise tax portal

Because the deadline does not move with your formation date, it is easy to track with a single annual calendar reminder. Your specific balance and filing history always appear on your business record in the Secretary of State's system, which is the authoritative place to confirm what you owe. If you ever dissolve the LLC, remember the franchise tax obligation continues until the entity is formally closed - see how to dissolve an LLC in Arkansas.

What Happens If You File Late

If May 1 passes without a filed report, the balance does not simply stay at $150. Arkansas law adds a penalty and interest to a delinquent franchise tax, and that amount keeps growing until you file and pay. A delinquent LLC loses good standing, which can block bank loans, government contracts, and professional-license renewals, and prolonged nonpayment can lead the Secretary of State to revoke the LLC's charter or good standing entirely. Because the exact penalty and interest formula is set by statute and can be updated, confirm the current amount on the Secretary of State's franchise tax page before you file a late report.

Delinquency is reversible but avoidable. An entity does not vanish the moment a report is late; it moves through a status change that the Secretary of State records publicly, and anyone who searches your business will see it is no longer in good standing. That visibility is often the real harm, because a bank underwriter, a prospective landlord, or a client running due diligence can spot the lapse instantly. Reinstating a revoked LLC generally means filing all overdue reports and paying the accumulated tax, penalty, and interest, so the cleanest path is simply to file by May 1 every year - the flat $150 is far cheaper than a stacked delinquency plus the reputational cost of a public flag.

Good Standing and Why It Matters

"Good standing" is the status that says your LLC is current on its Arkansas filings. It is what a Certificate of Good Standing certifies, and banks, lenders, licensing boards, and out-of-state registrars frequently require one before they will act. The Annual Franchise Tax Report is the main filing that keeps that status intact for an active LLC, so missing it does not just risk a late charge - it can stall a loan closing, a lease, a new professional license, or an expansion into another state. Keeping the report current is therefore less about the $150 and more about preserving the credibility your LLC needs to transact. If you plan to register your LLC in another state, expect that registrar to ask Arkansas for proof of your good standing first.

How to File the Annual Franchise Tax Report

Filing takes only a few minutes. Go to the Arkansas Secretary of State's franchise tax portal, look up your business, open the Annual Franchise Tax Report, confirm or update your entity information and registered agent, and pay the $150 tax by card. The system records the filing and returns your LLC to (or keeps it in) good standing. Keep the confirmation with your records. You do not need an attorney or a service to file, though many owners use a calendar reminder so the May 1 deadline is never missed. Make sure your federal EIN and formation details on file are accurate before you submit.

A useful habit is to file early in the year rather than waiting until the last week of April. Filing early costs the same $150, removes any risk of forgetting, and confirms your good standing well before a lender or client might check it. If your contact details or registered agent have changed, the franchise tax report is a natural moment to confirm that information is still correct, since the same filing surfaces it for review. If you also formed with Arkansas Articles of Organization, keep that record and your franchise tax history together for easy reference.

Arkansas LLC Taxes: Franchise Tax vs Income Tax

It is important to keep two separate systems straight. The franchise tax is a flat $150 privilege tax collected by the Secretary of State for the right to exist as an Arkansas entity; it is not based on profit. Income tax is a different obligation, administered by the Arkansas Department of Finance and Administration (DFA). By default an Arkansas LLC is a pass-through entity: profits flow to the members, who report their shares on their personal Arkansas income tax returns. A single-member LLC is a disregarded entity for the IRS, and a multi-member LLC is a partnership, unless the company elects corporate or S-corporation treatment. Get your federal EIN before you register for any state tax accounts, and see Arkansas LLC tax filing for the full income-tax picture.

Paying your income tax does not satisfy the franchise tax, and filing the franchise tax report does not satisfy your income tax - they are unrelated obligations to two different agencies. Because the franchise tax is flat, there is no revenue-based "LLC tax" bill to budget for at the entity level; instead you plan for the $150 franchise tax plus the individual income tax your members owe on their distributive shares. For the federal-to-state workflow and quarterly estimates, see how to file business taxes and the national business tax hub.

Sales Tax and Other Ongoing Obligations

If your LLC sells taxable goods or certain services, you must register for an Arkansas sales and use tax permit with the Department of Finance and Administration and remit collected tax on the state's schedule. This is separate from the franchise tax report, which goes to the Secretary of State, and from income tax. Local city and county sales taxes may apply on top of the state rate, so your combined obligation depends on where you sell. For the license and permit landscape, see business license in Arkansas and the national business license guide, and review whether a DBA or trademark registration fits your plans.

Frequently Asked Questions

Does Arkansas have an annual report for LLCs?

Yes. In Arkansas the LLC annual report is the Annual Franchise Tax Report, filed each year with the Secretary of State. There is no separate annual report; the franchise tax report is the annual filing that keeps your LLC in good standing.

How much is the Arkansas LLC franchise tax?

The Arkansas franchise tax for an LLC is a flat $150 each year, set by statute. It is the same amount regardless of the LLC's revenue or number of members and is paid with the Annual Franchise Tax Report.

When is the Arkansas Annual Franchise Tax Report due?

The report and the $150 tax are due May 1 each year, filed with the Secretary of State. Filing late triggers penalty and interest under state law, and a prolonged failure to file can lead to revocation of the LLC's good standing.

Does an Arkansas LLC pay a separate state income tax?

Not at the entity level by default. An Arkansas LLC is a pass-through entity, so profits flow to the members, who report their shares on their Arkansas returns filed with the Department of Finance and Administration. The $150 franchise tax is separate from income tax.

What happens if I miss the Arkansas franchise tax deadline?

A late report accrues penalty and interest set by statute, and the balance grows until you file and pay. Continued nonpayment can cause the Secretary of State to revoke your LLC's good standing or charter, which blocks financing, contracts, and license renewals until you reinstate.

Sources

Arkansas Secretary of State - Franchise Tax (Annual Franchise Tax Report; LLC $150; May 1 due date).
Arkansas Secretary of State - Business & Commercial Services (BCS) (entity filings and good standing).
Arkansas Code - § 26-54-104, Amount of tax (franchise tax amounts).
Arkansas Code - § 26-54-102, Definitions (Arkansas Corporate Franchise Tax Act).
Arkansas Code - § 26-54-105, Franchise tax reports (annual report requirement and due date).
Arkansas Code - § 26-54-114, Penalty and interest (late franchise tax consequences).
Arkansas Code - Title 4, Chapter 38, Uniform Limited Liability Company Act.
Arkansas Department of Finance and Administration - Individual Income Tax (members report pass-through income).
Arkansas Department of Finance and Administration - Partnership Income Tax (multi-member LLC reporting).
Arkansas Department of Finance and Administration - Sales and Use Tax (sales tax permit and remittance).
IRS - Limited Liability Company (LLC) (default classification).
IRS - Get an Employer Identification Number (free EIN before state tax accounts).
IRS - About Form 2553 (S corporation election).
Legal Information Institute - 26 CFR § 301.7701-3, Entity classification election.
Legal Information Institute - Franchise tax (definition and overview).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Arkansas Secretary of State and Arkansas Department of Finance and Administration before acting.