In Arkansas, franchise taxes must be remitted yearly by business owners. Corporations, limited liability companies, limited partnerships, and limited liability partnerships (LLPs) that are authorized to conduct business in the state are subject to this tax. We’ll walk you through the franchise tax payment process in Arkansas in this article.
The first step is figuring out how much tax you owe. The franchise tax in Arkansas is calculated at 0.3% of the greater of your company’s capital stock or net value. Once you know how much tax is owed, you can submit and pay online through the website of the Arkansas Secretary of State. Although you can file by mail as well, doing it online is quicker and more practical.
Visit the website of the Arkansas Secretary of State and select the “Franchise Tax” button to make a payment online. After that, choose “File and Pay Franchise Taxes” and adhere to the on-screen directions to finish the payment. To complete the payment, you will require the tax liability amount and the business identity number.
In addition to franchise tax, Arkansas may also impose sales tax on your purchases. In Arkansas, the state sales tax is 6.5%, and local sales taxes can be different as well. To start collecting sales tax, you can apply for a sales tax permit at the Arkansas Department of Finance and Administration.
You must select a name that is distinct and not in use if you are forming an LLC in Arkansas. On the Secretary of State’s website, you can look up LLC names that are currently available. You can submit your Articles of Organization to the Secretary of State’s office once you have verified that the name you want for your LLC is available.
An LLC’s charter may be revoked if it fails to submit annual reports or pay franchise taxes twice in a row. If the LLC’s charter is forfeited, it is no longer permitted to conduct business in Arkansas. You can look up information on company entities, such as the names of registered agents and members or managers, on the Secretary of State’s website to learn who owns an LLC in Arkansas.
In conclusion, business owners in the state are required to pay the Arkansas Franchise Tax. You may quickly file and pay your franchise tax online if you adhere to the instructions provided in this article. To maintain compliance with Arkansas business legislation, it’s also crucial to be aware of sales tax rates, LLC naming specifications, and forfeiture restrictions.