The Arkansas Secretary of State is once again collecting franchise taxes for all companies registered with the State of Arkansas. Due to the recent transition of franchise taxes from the Department of Finance and Administration back to our office, Secretary of State John Thurston has waived the penalty and interest on 2021 franchise taxes until July 15th.
Arkansas state law requires all Corporations, LLCs, Banks, and Insurance Companies registered in Arkansas to pay an annual franchise tax. Failure to pay can result in the imposition of additional fees, penalties and interest, or even revocation of the authorization to do business. Franchise taxes continue to accrue, even for revoked businesses, until the business is dissolved, withdrawn, or merged. Any additional filings with our Business & Commercial Services division will be prohibited for persons or entities that fail to pay the franchise tax.