Franchise Tax

In accordance with the Arkansas Tax Reform Act of 2019, the administration and collection of all Franchise Tax in the State of Arkansas has transferred from the Secretary of State (SOS) to the Department of Finance and Administration (DFA).   

Secretary of State will continue to be the first point of contact when starting a new business in Arkansas as well as any activity related to the organizational structure of your entity.  See ‘Who do I Contact’ in the FAQ section.

How to File the Franchise Tax Return 

Online Service – Arkansas Taxpayer Access Point (ATAP) is a web-based service that gives taxpayers or their designated representatives online access to their tax accounts.  ATAP offers many services including FREE electronic filing and payment options. Please visit www.atap.arkansas.gov.

Paper Returns – Paper returns will be mailed to all registered Franchise Tax accounts that have not previously filed electronically with DFA. Paper returns may be submitted by mail or delivered in person.

Deadlines – The due date for filing your Arkansas Franchise Tax return is May 1st.  If that due date falls on a weekend or a holiday, your return is due on the next business day.

The penalty for not filing by May 1st is $25 plus interest on the tax and penalty from the date due until paid at the rate of 10% per year.