Arkansas LLC Tax Filing Requirements (2026)

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

Arkansas LLCs are subject to federal income tax rules based on their IRS classification (disregarded entity or partnership by default), plus an annual state franchise tax of at least $150 due May 1. Arkansas also levies a state income tax on individuals and corporations, and a sales tax on taxable goods and services.

Federal Income Tax for Arkansas LLCs

An Arkansas LLC's federal income tax obligations are determined by its classification with the Internal Revenue Service (IRS). The LLC itself does not pay federal income tax directly unless it elects to be taxed as a corporation. Instead, profits and losses are typically "passed through" to the owners.

Default Federal Tax Classifications

• Single-Member LLC (SMLLC): By default, an SMLLC is treated as a disregarded entity by the IRS. This means the LLC's income and expenses are reported on the owner's personal federal income tax return (Form 1040, Schedule C, E, or F). The LLC itself does not file a separate federal income tax return. The owner is responsible for self-employment taxes (Social Security and Medicare).
• Multi-Member LLC: By default, a multi-member LLC is treated as a partnership for federal income tax purposes. The LLC files an informational return (IRS Form 1065, U.S. Return of Partnership Income) to report its income, gains, losses, deductions, and credits. Each member receives a Schedule K-1 (Form 1065) detailing their share of the LLC's profits or losses, which they then report on their individual federal income tax returns. Members are also subject to self-employment taxes on their distributive share of income.

Electing Corporate Tax Treatment

An Arkansas LLC can elect to be taxed as a corporation by filing IRS Form 8832, Entity Classification Election. If it elects corporate status, it can further elect to be taxed as an S-corporation by filing IRS Form 2553, Election by a Small Business Corporation. S-corporation election can sometimes offer tax advantages by allowing owner-employees to take a reasonable salary subject to payroll taxes, with remaining profits distributed as dividends not subject to self-employment tax. If an LLC elects C-corporation status, it files IRS Form 1120, U.S. Corporation Income Tax Return, and is subject to corporate income tax rates. This can lead to "double taxation" where profits are taxed at the corporate level and again when distributed to owners as dividends.

Regardless of federal tax classification, most LLCs will need an Employer Identification Number (EIN) from the IRS, especially if they have employees, are a multi-member LLC, or elect corporate tax treatment.

Arkansas State Income Tax

Arkansas levies a state income tax on individuals and corporations. The way an Arkansas LLC is affected depends on its federal tax classification.

Individual Income Tax

Arkansas has a progressive individual income tax. For LLCs taxed as disregarded entities (SMLLCs) or partnerships (multi-member LLCs), the LLC itself generally does not pay state income tax. Instead, the individual members report their share of the LLC's profits or losses on their personal Arkansas income tax returns (Form AR1000F for residents). These members are subject to Arkansas individual income tax rates on their business income. The Arkansas Department of Finance and Administration (DFA) administers this tax.

Corporate Income Tax

If an Arkansas LLC elects to be taxed as a C-corporation for federal purposes, it will also be subject to Arkansas corporate income tax. The LLC would file an Arkansas corporate income tax return (Form AR1100CT) with the DFA. Arkansas corporate income tax rates apply to the LLC's taxable income. If the LLC elects S-corporation status, it generally files an informational return (Form AR1100S) with the DFA, and income passes through to shareholders' individual returns, similar to a partnership.

Arkansas also has specific filing requirements for pass-through entities, which include LLCs taxed as partnerships or S-corporations. These entities may need to file informational returns with the DFA.

Arkansas Franchise Tax

The Arkansas franchise tax is an annual tax levied on corporations and LLCs for the privilege of doing business in the state. It is separate from income tax and is administered by the Arkansas Secretary of State.

• Tax Amount: The minimum franchise tax for an Arkansas LLC is $150. The tax is based on the LLC's stated capital (or capital stock for corporations) employed in Arkansas, with a minimum of $150 and a maximum of $25,000.
• Due Date: The Arkansas franchise tax is due by May 1 each year. If May 1 falls on a weekend or holiday, the due date shifts to the next business day.
• Filing: LLCs must file an annual report and pay the franchise tax online through the Arkansas Secretary of State's website. The annual report updates the state with current information about the LLC, such as its registered agent and principal office.
• Penalties: Failure to pay the franchise tax or file the annual report by the due date can result in penalties, including late fees and potential forfeiture of the LLC's authority to transact business in Arkansas.

This annual filing is a mandatory compliance requirement for all LLCs registered in Arkansas, regardless of their income or activity level.

Arkansas Sales and Use Tax

If an Arkansas LLC sells taxable goods or services within the state, it must collect and remit Arkansas sales tax. This tax is administered by the Arkansas Department of Finance and Administration (DFA).

• Sales Tax Permit: Before making any taxable sales, the LLC must obtain a sales tax permit from the DFA. This permit allows the LLC to collect sales tax from customers. Applications can typically be made online through the DFA's Taxpayer Access Point (TAP) system.
• Taxable Items: Arkansas sales tax generally applies to the retail sale of tangible personal property and certain services. The specific items and services subject to tax can be found in the Arkansas sales tax laws and regulations.
• Tax Rate: The statewide sales tax rate is 6.5%. In addition to the state rate, local sales taxes (city and county) may also apply, increasing the total sales tax rate depending on the location of the sale.
• Filing and Remittance: LLCs with a sales tax permit are required to file regular sales tax returns (monthly, quarterly, or annually, depending on sales volume) and remit the collected tax to the DFA. Returns are typically filed electronically.
• Use Tax: Arkansas also imposes a use tax on items purchased outside the state for use within Arkansas, where sales tax was not paid at the time of purchase. Businesses may be responsible for remitting use tax on such purchases.

For more details, see Arkansas sales tax permit.

Other Potential Taxes and Filings

Depending on the nature of its business, an Arkansas LLC may be subject to other taxes or filing requirements:

• Payroll Taxes: If the LLC has employees, it will be responsible for withholding federal and state income taxes from employee wages, paying Social Security and Medicare taxes (FICA), and contributing to federal and state unemployment insurance (FUTA and SUTA). The Arkansas Department of Workforce Services handles state unemployment taxes.
• Property Tax: If the LLC owns real estate or certain types of business personal property, it will be subject to local property taxes assessed by county assessors and collected by county tax collectors.
• Industry-Specific Taxes: Certain industries may be subject to specific excise taxes, severance taxes, or other special taxes. For example, businesses involved in fuel, tobacco, or alcohol may have additional tax obligations.
• Local Business Licenses and Fees: While Arkansas does not have a general statewide business license, many cities and counties require businesses to obtain local licenses or permits and pay associated fees. These are typically not tax-based but are regulatory requirements. See Arkansas business licenses.

It is important for LLC owners to consult with a tax professional to ensure compliance with all applicable federal, state, and local tax laws.

Key Arkansas Tax Deadlines (2026)

Here are some general tax deadlines for Arkansas LLCs. Specific dates can vary based on the LLC's fiscal year and IRS classification.

If a due date falls on a weekend or holiday, the deadline typically shifts to the next business day. Estimated tax payments for federal and state income taxes are generally due quarterly.

Frequently Asked Questions

What taxes does an Arkansas LLC pay?

An Arkansas LLC pays federal income tax based on its IRS classification (disregarded entity, partnership, or corporation). It also pays the Arkansas franchise tax ($150 minimum, due May 1), and if applicable, Arkansas sales tax. Members pay state income tax on their share of profits.

Does Arkansas have a state income tax for LLCs?

Arkansas has a state income tax. For LLCs taxed as disregarded entities or partnerships, the LLC itself generally does not pay income tax; instead, the individual members pay Arkansas income tax on their share of the LLC's profits on their personal returns. LLCs electing corporate tax treatment pay corporate income tax.

What is the Arkansas LLC franchise tax?

The Arkansas franchise tax is an annual tax levied on corporations and LLCs for the privilege of doing business in the state. The minimum tax for an LLC is $150, due to the Arkansas Secretary of State by May 1 each year. It is separate from income tax.

When is the Arkansas franchise tax due?

The Arkansas franchise tax is due by May 1 each year. The payment and annual report are filed with the Arkansas Secretary of State. If May 1 falls on a weekend or holiday, the due date shifts to the next business day.

Does an Arkansas LLC need a sales tax permit?

An Arkansas LLC must obtain a sales tax permit from the Arkansas Department of Finance and Administration (DFA) if it sells taxable goods or services within the state. The permit allows the LLC to collect and remit sales tax to the state.

Related

• Business Tax Hub
• How to Form an LLC in Arkansas
• Arkansas Registered Agent
• How to Get an EIN
• S-Corp vs. LLC
• Arkansas Annual Report
• How to Dissolve an LLC in Arkansas

Sources

1. Arkansas Secretary of State - Franchise Tax Information ($150 minimum, May 1 due date).
2. Arkansas Secretary of State - Annual Report Filing.
3. Arkansas Department of Finance and Administration (DFA) - Individual Income Tax.
4. Arkansas Department of Finance and Administration (DFA) - Corporate Income Tax.
5. Arkansas Department of Finance and Administration (DFA) - Pass-Through Entities.
6. Arkansas Department of Finance and Administration (DFA) - Sales and Use Tax Overview.
7. Arkansas Department of Finance and Administration (DFA) - Sales Tax Permit Application.
8. IRS - Limited Liability Company (LLC) (federal default classifications).
9. IRS - Sole Proprietorships (SMLLC default).
10. IRS - Partnerships (multi-member LLC default).
11. IRS - S Corporations (S-corp election).
12. IRS - Get an Employer Identification Number (EIN).
13. Arkansas Secretary of State - Forms and Fees (general corporate filings).
14. Arkansas Department of Workforce Services - Unemployment Insurance for Employers.

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.