Arkansas Franchise Tax Report Due May 1: the $150 LLC Flat Tax, the 0.3% Corporation Calculation, and Late Penalties

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Arkansas franchise tax report due May 1: the $150 LLC flat tax, how the 0.3% corporation calculation works, late penalties, and how to file with the Secretary of State.

Every Arkansas LLC and corporation files one report with the Secretary of State each spring, and most owners only remember it when the reminder letter shows up. It's called the Annual Franchise Tax Report. For an LLC it's simple: one flat payment. For a corporation it takes a short calculation using its stock and its balance sheet. Either way, the deadline is fixed, there's no extension, and a late report costs money from the first day.

This guide covers who files, how the LLC and corporation amounts are figured, how to calculate the late penalty and interest, and how to keep the report from slipping, with examples for businesses in Little Rock, AR, Fayetteville, Bentonville and the rest of the state.

All figures below come from the Arkansas Secretary of State's 2026 report forms, the Annual LLC Franchise Tax Report 2026 and the Annual Corporation Franchise Tax Report 2026, both "for the year ending 12/31/2025."

The short version

  • Who files: domestic and foreign LLCs and corporations registered in Arkansas, with narrow exemptions.
  • Due date: on or before May 1 each year, for the year that ended the prior December 31. The 2026 report was due May 1, 2026.
  • LLCs: a flat $150, whether domestic or foreign.
  • Corporations: Arkansas capital stock times 0.003, with a $150 minimum, and $300 for corporations without authorized stock.
  • Extensions: none. The state eliminated them in 1991.
  • Late: a $25 penalty plus daily interest on the tax and penalty.

Who has to file

The Secretary of State's instructions say the report is owed by all domestic and foreign corporations, associations, organizations and companies that exist as a separate legal entity, unless they're exempted by A.C.A. § 26-54-102.

The exemptions are narrow:

  • nonprofit corporations that are exempt from federal income tax,
  • general partnerships formed under the Uniform Partnership Act, and
  • limited partnerships formed under the Uniform Limited Partnership Act.

That means a single-member LLC files, even if it's disregarded for federal income tax and has no Arkansas income tax return of its own. An LLC that elected to be taxed as an S corporation still files the LLC version of the report, since the report follows the entity type registered with the state, not the federal tax classification the IRS uses.

Foreign entities count too. An LLC formed in Texas or Delaware that registered to do business in Arkansas (for example, to open a location in Rogers or Jonesboro) has the same May 1 report as a homegrown one.

The reporting year and the tax year

The forms use two terms that are easy to mix up:

  • Reporting year: the year the report is due.
  • Tax year: the year ending December 31 before the reporting year.

So the "2026" report is the one for tax year 2025: it covers the year ending December 31, 2025 and was due May 1, 2026. If the rules stay the same, the next report covers the year ending December 31, 2026 and is due May 1, 2027.

LLCs: a flat $150

For LLCs the math is the easy part. The instructions say that if the report is timely filed, all limited liability companies are liable for only the $150 payment. There's no calculation based on revenue, assets or members.

What the LLC report does ask for, and what trips people up, is the information section. Sections 3 through 5 are required:

  1. Registered agent: name and a street address in Arkansas. A P.O. box or mail drop isn't allowed.
  2. Principal office in Arkansas: the address of the company's executive office.
  3. Management: whether the LLC is member-managed or manager-managed, with the current members or managers listed.

The form also asks for a tax contact, the nature of the business and the federal EIN. It must be signed by a member, a manager, or the tax preparer.

One more detail: changes such as a new name or a merger can't be made by writing them on the report. Those need their own filings with the Business and Commercial Services Division.

Corporations: the 0.3% capital stock calculation

Corporations pay based on their stock, scaled by how much of their property is in Arkansas. The 2026 form lays it out in three steps:

  1. Arkansas percentage. Divide Arkansas assets (the real and personal property applicable to Arkansas on the balance sheet) by total assets on the balance sheet.
  2. Arkansas capital stock. Multiply that percentage by the issued and outstanding capital stock (line 7d of the report).
  3. Tax. Multiply Arkansas capital stock by 0.003.

Two rules sit around the formula:

  • Minimum tax: $150. If the calculation comes out lower, you pay $150.
  • No authorized stock: a corporation without authorized stock pays $300.

No-par stock. The report values no-par shares at $25 per share for this calculation. That matters, because a corporation with many no-par shares can owe much more than its owners expect.

Example 1: a small Little Rock corporation

A consulting corporation in Little Rock, AR has 1,000 issued shares at $1 par. All of its assets are in Arkansas.

  • Arkansas percentage: 100%
  • Arkansas capital stock: 100% x $1,000 = $1,000
  • Tax: $1,000 x 0.003 = $3

Since $3 is below the minimum, the tax due is $150.

Example 2: no-par shares at a Fayetteville company

A manufacturer in Fayetteville, AR has 200,000 issued no-par shares. Its balance sheet shows $3,000,000 of total assets, $2,400,000 of them in Arkansas.

  • Stock value for the report: 200,000 x $25 = $5,000,000
  • Arkansas percentage: $2,400,000 / $3,000,000 = 80%
  • Arkansas capital stock: 80% x $5,000,000 = $4,000,000
  • Tax: $4,000,000 x 0.003 = $12,000

If the same company had issued 200,000 shares at $0.01 par instead, line 7d would be $2,000, and the tax would drop to the $150 minimum. Share structure drives this number, so it's worth reviewing with whoever set up the corporation before the next report.

Late penalty and interest

The report is timely only if the Secretary of State receives it by close of business on May 1, or if it's postmarked by the United States Postal Service no later than midnight on May 1. A postage meter date doesn't count.

There are no extensions: the instructions note that Acts 1046 and 1140 of 1991 eliminated them.

If you miss the date, the form gives the calculation:

  • A. Original tax due May 1
  • B. Late filing penalty: $25
  • C. Tax plus penalty (A + B)
  • D. Interest: C x 0.000274 x number of days late
  • E. Total due: C + D

That daily rate works out to about 10% a year.

Example 3: an LLC that files 90 days late

  • Tax: $150
  • Penalty: $25
  • Tax plus penalty: $175
  • Interest: $175 x 0.000274 x 90 = about $4.32
  • Total: about $179.32

The dollar amount is small for an LLC. The bigger risk is what happens if the report keeps getting skipped: the entity can fall out of good standing with the Secretary of State, which can block a loan, a sale or a certificate of good standing that a bank or landlord asks for. Arkansas law also lets the state revoke the charter of entities that don't pay franchise tax, so a forgotten report can turn into a reinstatement project. If your entity has missed more than one year, check its status on the Secretary of State's business search before doing anything else.

Filing and paying

  • Online: the Secretary of State's site, www.sos.arkansas.gov, takes the report and the payment online at any hour.
  • By mail: sign in black ink and mail it with a check payable to the Arkansas Secretary of State to Business and Commercial Services Division, P.O. Box 8014, Little Rock, Arkansas 72203-8014. Payment must go with the report.
  • No form in the mail? The instructions say companies that haven't received a form by March 20 must ask for paper forms in writing, or download the fillable PDF or file online. Not getting a reminder doesn't move the May 1 date.
  • Questions: the Secretary of State's office is at 501-682-3409, or toll free 888-233-0325.

If the tax was computed wrong, the state bills the underpayment. Refund requests go to the same division with proof.

Common mistakes

Assuming the report is part of the income tax return. It isn't. The franchise tax report goes to the Secretary of State. Arkansas income tax returns (and the elective pass-through entity tax for partnerships and S corporations) go to the Department of Finance and Administration, on different forms and dates.

Letting the registered agent go stale. If your agent moved, or you've been using a former partner's address, the report is the moment to fix it, and the agent must have an Arkansas street address.

Not budgeting for a corporation's real number. A no-par corporation can owe thousands. Put the estimate in your books early in the year rather than finding it in April.

Dissolving by not filing. Owners who stop operating sometimes stop filing and assume the entity goes away. It doesn't. A company that wants to stop must file a dissolution or withdrawal document with the Secretary of State.

Missing a foreign registration. If you registered your out-of-state LLC in Arkansas years ago for a single project, it still owes the report every May 1 until you withdraw it.

A May 1 checklist

  1. In January, pull the entity list for every Arkansas registration you have, including foreign registrations.
  2. Confirm the registered agent, principal office, and members, managers or officers.
  3. For corporations, pull the year-end balance sheet and the stock ledger, and run the three-step calculation.
  4. Put May 1 on the calendar with a reminder two weeks earlier, and file online so there's no postmark question.
  5. Book the payment in your accounting system as a state franchise tax expense, separate from income tax.
  6. Keep the filing confirmation with the year's tax records.

Where to check the rules

This guide is general information about the Arkansas franchise tax report as of October 2026, not tax or legal advice for your situation. Forms are updated each year, so confirm the current report and instructions before you file.

How RKube can help

We keep books and handle tax prep for small businesses across the US, including Arkansas LLCs and corporations. We track franchise tax reports alongside the income tax calendar, run the corporation calculation from your year-end balance sheet, and make sure the payment is booked correctly. If you'd like help getting your Arkansas filings on one calendar, book a free scoping call and ask about our free 30-day trial, or call us at (984) 234-7030.

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