Arkansas Franchise Tax & Annual Report Filing System

Discover a streamlined and hassle-free way to file your Arkansas franchise tax and annual report with this new online system.

Filing Your Arkansas Franchise Tax Report

Make sure to have all necessary information on hand before beginning the process, including your tax registration and certificate of good standing. The Franchise Tax rate is a minimum of 0.3%, and the Tax Board may require additional payment based on your entity’s income and other factors.

Once you’ve completed the report, you can submit it online and pay any applicable fees via Bank Access or credit card. Keep in mind that the tax deadline is May 1st of each year. If you have any questions or issues, the Arkansas Secretary of State website offers helpful text boxes, charts, and images, as well as access to the Franchise Tax Division for further assistance.

Due Dates and Fees for Arkansas Franchise Tax

Due Date	Filing Fee	Penalty
May 1st	$150	10% of tax due or $25, whichever is greater
August 1st	$150	10% of tax due or $25, whichever is greater
November 1st	$150	10% of tax due or $25, whichever is greater

Understanding the Purpose of Arkansas Franchise Tax

The Arkansas Franchise Tax is an annual tax that applies to corporations and other entities that do business in Arkansas. It’s calculated based on the corporation’s capital stock, which is the total amount of shares issued multiplied by their par value. The minimum franchise tax rate is 0.3% of the capital stock, but the rate can vary depending on the corporation’s income and other factors. The purpose of the franchise tax is to generate revenue for the state of Arkansas. Corporations must file an annual report and pay the franchise tax by May 1st each year. Failure to do so can result in penalties and interest charges. To file, corporations can use the Arkansas Franchise Tax & Annual Report Filing System, which is available online through the Arkansas.gov website.

Penalties and Consequences for Not Filing Arkansas Franchise Tax Reports

Failure to file Arkansas franchise tax reports by the due date will result in penalties and consequences for businesses. Penalties include a late fee of $25 per day, up to a maximum of $3,000. Consequences can include suspension of your business’s certificate of good standing, which can result in difficulty obtaining financing or doing business in the state. Additionally, interest accrues on any unpaid franchise taxes at a rate of 0.3% per month. To avoid these penalties and consequences, it is important to file your franchise tax reports on time. The Arkansas Franchise Tax & Annual Report Filing System allows businesses to complete this process online, making it quick and easy to meet the tax deadline.

Additional Information on Arkansas Franchise Tax and Annual Reports

Arkansas Franchise Tax and Annual Reports:

To validate the information on your Franchise Tax and Annual Report, you can request for a validation request. The Franchise Tax rate is at 0.3%. The tax report can be filed online or through mail by filling out the appropriate forms.

Entities such as Limited Liability Companies, Mortgage Loan Corporations, Insurance Companies with Outstanding Capital Stock, Legal Reserve Mutual Insurance Corporations, and Mutual Assessment Insurance Corporations are required to file annual reports.

You can access the Franchise Tax and Annual Report Filing System through the Arkansas.gov website. The system supports different browsers, but you may need to enable Javascript and cookies.

For more information about Arkansas Franchise Tax and Annual Reports, refer to the Arkansas Code or contact the Arkansas Tax Board.