business & Commercial services

Franchise Tax

Franchise Tax Report Forms | Annual Report Forms 

The Arkansas Secretary of State Office is responsible for the collection of the state’s mandatory franchise taxes. Companies who conduct business in Arkansas are required to pay this annual tax, with the first $8 million placed into the state’s general fund and the remaining balance into the Education Adequacy Fund, which provides funding to public schools and higher education.

The Arkansas General Assembly’s Act 94 of 2003, Arkansas Code Annotated as 26-54-104, adjusted the state’s franchise tax and changed the tax deadline date to May 1st of the payment year.

NOTE: Franchise taxes are owed whether or not business is conducted or a profit is made. Franchise tax is NOT pro-rated and will be owed regardless of how long the business operated in the calendar year.

Franchise Taxes Collected

2009 - $22.8 million
2010 - $24.0 million
2011 - $23.2 million
2012 - $23.1 million

2013 - $26.5 million
2014 - $25.8 million
2015 - $26.3 million
2016 - $25.6 million

2017 - $26.1 milliom
2018 - $27.6 million
2019 - $28.0 million

  

File Franchise Tax

The chart below lists the franchise tax rates for various entities under Arkansas Code 26-54-104.

Assets Less Than $100 million

Franchise Tax Type Current Rate 
Corporation/Bank with Stock .3% of the outstanding capital stock;
$150 minimum
Corporation/Bank without Stock $300
Limited Liability Company $150
Insurance Corporation Legal Reserve Mutual $300
Insurance Corporation-Legal reserve mutual assets greater than $100 million $400
Insurance Company-Outstanding capital stock less than $500,000 $300
Insurance Company-Outstanding capital stock greater than $500,000 $400
Mortgage Loan Corporation .3% of the outstanding capital stock;
$300 minimum
Mutual Assessment Insurance Corporation $300

Note: 26-54-105. Franchise tax reports.

d)(1) Every corporation that dissolves shall be required to pay at the time of dissolution the franchise tax for the prior calendar year and pay at the time of dissolution the minimum franchise tax for the year in which dissolved or withdrawn.