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The objective of the annual report is threefold. The annual report keeps the Government informed about all updates, communicates any modifications or changes, & keeps the LLC members informed about the necessary taxes and costs. This article has all the information about the Arkansas LLC annual report filing in Arkansas.
An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This yearly report is a record of all the company’s activities in an entire year. It is also referred to as the Annual Franchise Tax Report because it helps in filing the franchise tax.
Content of the Annual Report
Typically, the annual report filed by an Arkansas LLC (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report or the annual franchise tax report are
- Office Address of the LLC
- Names & Addresses of the Members & managers.
- Identification Documents
- Social Security numbers of the key members of the LLC
- The objective of the business of the LLC
- List of all the signatories of the LLC
- Information of the registered agent, if any
LLC Tax Update: Before you file your LLC annual report in Arkansas, make sure to pay all the tax dues for the year.
Arkansas LLC Annual Report
If you are an LLC owner, you may be wondering if an Annual report is required to be filed with the authorities. In Arkansas, the annual report is referred to as the Annual Franchise Tax Report. This Franchise Tax Report is filed every year with the Arkansas Secretary of State. Note that the LLC Annual Report is not the same as the Certificate of Good Standing in Arkansas.
Does the State of Arkansas Require an Annual Report Filing?
The State of Arkansas does not have any Initial Report Requirements. But, it is mandatory to file the Arkansas annual report (known as the Annual Franchise Tax Report) with the Arkansas Secretary of State.
All the legal entities, such as C Corporations, Limited Partnerships, and Limited Liability Companies, are bound to file the Franchise Tax report along with the Franchise Tax.
How to File an Arkansas LLC Annual Report
The Annual Franchise Tax report can be filed online or by mail in Arkansas. The Franchise Tax Report must be filed by May 1st each year. In Arkansas, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit the Arkansas Secretary of State’s site to create an account or sign in to the portal.
- Step 2: As the second step of filing the Annual Franchise Tax Report, you have to enter the file number in the given box; if you don’t know your file number, you can search the same by clicking on the link beside it.
- Step 3: Once you have entered your file number, you have to enter the Franchise Tax ID in order to calculate the taxes owed by you. If you do not have your Federal Tax ID or if it is your first year of filing the Federal Tax ID, then you can enter nine zeros (000000000) in the given box.
- Step 4: Once you have entered the Franchise Tax ID or you have entered the non-zero numbers in the box, click on the show available filings button to see the list of filings owed by you.
- Step 5: If your LLC has to file multiple franchise tax filings per year & if you have already signed up for the batch filings, then this section of filing is for you. You need to enter your login details & just have to click on the login file button.
Filing Arkansas LLC Annual Report By Mail
To file the Annual Report in Arkansas by mail, follow the steps below,
- Go to the Arkansas Secretary of State Site.
- Get the Annual Franchise Report Form from the list of forms.
- Look for the form listed under year 21.
- Download the form (.pdf) on your personal computer.
- You need Adobe Reader installed to fill out the form.
- Fill out the forms with the correct information and save them.
- Print the forms and attach the required documents.
- Write a paper check properly to make the payment.
- Send the printed copies of the forms and documents to the address, Arkansas Secretary of State, Ste. 250, Victory Building, 1401 West Capitol Ave, Little Rock, AR 72201
Arkansas LLC Annual Report (Domestic & Foreign)
| State Office: | Arkansas Secretary of State, Ste. 250, Victory Building, 1401 West Capitol Ave, Little Rock, AR 72201 Links to Website, Forms, File & Pay |
| Due Date: | May 1st, every year. |
| Filing Fee: | The filing fee for filing the report online is $15 for filing it by mail & $5 for filing it online. |
| Penalty: | The Arkansas Secretary of State levies a $25 penalty on a report that is filed late, plus $.05 per day for every delayed day. |
| Filing Method: | An Arkansas LLC can file the report Online Or by Mail |
| Forms: | The form to file the Annual Franchise Tax Report can be found on this link. |
| Important Information: | Once a Domestic or Foreign Arkansas Limited Liability Company submits the Franchise Public Information Report along with the prescribed taxes to the Arkansas Secretary of State, it is considered a complete filing. |
Annual Franchise Tax Report Deadline
The Franchise Tax Report must be filed by May 1st each year, with the franchise tax of $150. Every LLC is bound by this rule, except for an LLC in its first calendar year of business. For the first calendar year of business, an LLC will file the annual report next year. E.g., the LLC, which was formed in January 2021, will be submitting the annual report on May 1st, 2022.
Penalties for Non-filing or late filing
Filing the Franchise Tax report is essential for every type of entity in the State of Arkansas, so much so that there can be penalties for non-filing the Franchise Tax Report. The non-filing penalty or the late filing penalties for the annual report are $25. Most States charge additional penalties in case of a lapse in filing.
Tax Structure in Arkansas LLC
For an LLC in Arkansas, the tax structure is very simple and flexible. First of all, every LLC has the advantage of a pass-through taxation. On the other hand, an LLC can choose the desired tax structure at the time of formation. There are two ways an LLC can be taxed,
Default Status:
When filing your LLC in Arkansas, entrepreneurs have the opportunity to select a desirable tax structure. If they do not choose a specific structure, the LLC will be taxed under the ‘Default Status’. That means the tax will be levied based on the number of LLC members.
For a single-member LLC, it is considered a ‘disregarded entity’. This means that a single-member LLC does not have to file a federal income tax return, but the individual (or the LLC member) must file it personally. In the case of a single-member LLC, it is treated as a sole proprietorship.
In the case of a multi-member LLC, it is considered a partnership for tax purposes. Hence, the default status for a multi-member LLC is a partnership firm. LLCs are required to file a separate ‘partnership form’ with the IRS.
LLCs with Spouses: There are specific states (like California) where starting an LLC with a spouse is considered a single-member LLC instead of a partnership or multi-member LLC. In such cases, both husband and wife will be liable to pay taxes
Elective Status:
For an elective status, the LLC can choose the tax structure while filing the formation documents. LLCs in Arkansas should file a separate tax form if they do not wish to be taxed by default. Many LLCs choose to be taxed as a corporation to enjoy corporate benefits, especially if the LLC is large.
LLCs can choose between S-Corp and C-Corp tax status when filing the formation document in Arkansas. In that case, the concerned LLC needs to submit a separate form for each type it chooses. For the S-Corp type, Form 2553 must be submitted; for the C-Corp type, Form 8832 must be submitted.
In Arkansas, there may be local taxes (inquire with the local government body for details) that LLCs must pay to be updated. Make sure to pay and update your tax dues before you file your annual report in Arkansas.
Annual Report vs Certificate of Good Standing in Arkansas
The Certificate of Good Standing is a legal document that certifies that an LLC in Arkansas is in good standing and compliant with all applicable laws. That includes an updated annual report as well. While Annual Reports show if your company is up to date.
They are both similar documents (although not identical) and serve as proof of the company’s good standing. The Annual Report is a domestic document, whereas the Certificate of Good Standing in Arkansas is a mandatory document if the LLC is going beyond the home state to a foreign state. There are several ways to obtain a Certificate of Good Standing in Arkansas.
The form is available on the state SOS website. You can download the form, mail it, or submit it online. A filing fee of $5 must be paid to the SOS to obtain the Certificate of Good Standing. The amount might be more depending on the number of copies you request. If you request additional copies of documents, you may incur an additional fee of $0.50 per copy.
Request Certificate of Good Standing:
- Online Application: Apply through the state SOS website
- Offline Application: Form is available on the state SOS website
- Fees: $5
Why Do LLCs Have to File the Annual Report?
Some of the states are not required to file this yearly report, commonly known as the Annual Report. However, there are several reasons why states require an LLC Annual Report. Here are some reasons,
To Maintain the Accuracy of the Information
An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information allows the State authorities to track down any LLC when communicating.
To Provide the Correct Correspondence
Many times, any creditor or other entity willing to transact with the LLC requires the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated every year, such entities will not be able to communicate with them.
To Notify the Government About All the Significant Changes
If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information to the Government.
To Provide an Activity Log of an LLC
The Annual report is like an activity log of the LLC. It brings on record all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.
To Help You With the One-time Filing of Taxes
The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government.
To Enable the State to Track the Payments
The government authorities use all the information filed through the annual report to track State Taxes’ payments.
Seek the Help of a Registered Agent
Every State will have a different rule for filing the Annual Report. Usually, it is submitted every year, but it is submitted once in two years in some states. Some states require the filing of the report only once in ten years.
Not only the timing, the mode of filing, the proper addresses, exemptions, legality, annual report compliance, etc., have to be taken care of while paying the taxes or filing any reports with the State authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you about important dates of filing or payment of taxes.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- Maintaining Privacy (as it keeps your personal records off the public record)
You can read more about an Arkansas Registered Agent here.
FAQs
Yes, an annual report is essential for every business entity in most states. Some states also require filing biennial or decennial reports.
A Yearly Business Report or the annual report typically incorporates the address of the business, names & addresses of the members, a list of all the signatories, SSN of the members, & details of the registered agent.
A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allow the smooth filing of reports & other fees.
The most important thing for filing an Annual Report is record-keeping. Make sure that you document every other transaction well.
Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.
In Conclusion
In conclusion, we can see that the annual report, which is also called the Franchise Tax Public Information Report, is much easier to file. However, it is mandatory to file the report on time to avoid any penalties. If you are running an LLC in the state of Arkansas, you have to comply with the filing of certain important documents, including the annual report or the Franchise Tax Public Information Report, as it is named in the state of Arkansas.
It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the Secretary of State. Additionally, please note that an annual report is not the same as a Certificate of Good Standing in Arkansas. They might look similar, as many parts of the certificate are the same as those in the annual report; however, it is a completely different document and should be compliant with the filing requirements for the annual report in Arkansas.