Arkansas lesson 6 of 6
Bank accounts and the annual LLC franchise tax
Arkansas does not use a low-cost annual report the way many states do. Instead, every Arkansas LLC owes a flat $150 franchise tax to the Secretary of State each year, due May 1, and the Secretary of State can block other filings on your LLC until it is paid.
Keep business and personal funds separate
Before your first franchise tax report comes due, make sure business income and expenses run through a dedicated business bank account rather than a personal one. Courts weighing whether to pierce an LLC's liability shield look closely at whether the owner actually treated the LLC as a separate entity, and a mixed account is one of the clearest signs that it was not.
What is due and when
Every Arkansas LLC and PLLC owes a flat $150 annual franchise tax to the Secretary of State, regardless of income, revenue or activity level. The Annual LLC Franchise Tax Report and payment are due on or before May 1 each year. Filing online through the Secretary of State's franchise tax portal adds a $5.00 credit card processing fee; paying by mail or in person with a check has no processing fee, so the fastest route is not always the cheapest one.
If you miss it
Arkansas Code § 26-54-107 sets out a statutory penalty and interest for franchise tax reports and payments not received by the deadline. Franchise taxes continue to accrue even after a penalty is assessed, and under Arkansas Code § 26-54-114 the Secretary of State will not process most other filings for your LLC, including a change of registered agent or an amendment, until the outstanding franchise tax is paid. Confirm the exact current penalty and interest calculation on the Secretary of State's franchise tax page before you file late.
Franchise tax notices go to your registered agent's address on file, so an outdated agent listing can turn into a missed May 1 deadline you never actually saw.
Key takeaways
- The $150 franchise tax is flat and applies to every Arkansas LLC regardless of income.
- It is due May 1 each year, with a $5 processing fee only if you pay online.
- Unpaid franchise tax blocks most other Secretary of State filings on your LLC until it is resolved.
Frequently asked questions
Is the Arkansas LLC franchise tax based on income?
No. It is a flat $150 per year for every LLC and PLLC, regardless of revenue, profit or activity level.
What happens if my Arkansas LLC does not pay its franchise tax?
A statutory penalty and interest accrue under Arkansas Code § 26-54-107, and the Secretary of State will not process most other filings on the LLC, including a registered agent change, until the tax is paid.
Official sources
Or let us file your Arkansas LLC for you
Everything above is yours to use for free. If you would rather hand it over, we prepare and file the Certificate of Organization (Form LL-01), act as your registered agent, and track your ongoing deadlines.
Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team