Franchise Tax Clearance
DFA clearance for franchise tax filing and payment is necessary in order to engage in certain corporate activities with the Arkansas Secretary of State.
What are the different types of clearances?
- General Filing – Corporations who wish to file any forms or documentation related to that corporation must not owe any past-due franchise taxes with the DFA. For general filing, past-due franchise taxes mean the past three (3) years of franchise tax returns must be filed and paid in order to be cleared for general filing. The general filing clearance also extends to any person substantially connected to any corporation that owes past-due franchise taxes.
- Reinstatement - When a corporation is forfeited, reinstatement to all rights, powers, and property may occur if all franchise tax requirements are met within seven (7) years of the date of forfeiture. Included in the franchise tax requirements is the filing of all delinquent franchise tax returns and payment of all taxes and penalties due to the satisfaction of the Arkansas Department of Finance and Administration.
- Dissolution - A corporation may file for dissolution clearance with the Franchise Tax Section when the corporation itself is being ended and all assets are redistributed. Upon dissolution, the corporation will no longer exist. To be cleared to dissolve, a corporation must file and pay all past-due franchise taxes in addition to filing the final return and paying the minimum tax in the current calendar year in which the dissolution is requested.
How do I obtain proof of clearance?
The Arkansas Secretary of State office can provide documentation stating the basic corporate status. Please contact a representative at the Arkansas Secretary of State by phone at 501-682-3409 or toll free at 888-233-0325.
If the current clearance status is unknown by the Secretary of State, you may obtain your status with the DFA by emailing firstname.lastname@example.org or by calling 501-682-7920.
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