Key Takeaways

  • The Arkansas Taxpayer Access Point (ATAP) allows businesses to manage tax obligations, file franchise and sales tax returns, and make payments online.
  • Every Arkansas LLC must file an Annual Franchise Tax Report and pay a $150 flat-rate tax each year.
  • The Arkansas Pass-Through Entity Tax (PET) Act lets eligible LLCs and partnerships pay state income tax at the entity level, potentially reducing federal tax liabilities.
  • The Arkansas Department of Finance and Administration (DFA) oversees ATAP registration, filing, and compliance, including sales and use tax, income withholding, and other business-related taxes.
  • Recent Arkansas privacy and digital legislation affects online and social media-based businesses operating in the state.

Through the Arkansas ATAP (Arkansas Taxpayer Access Point), entrepreneurs can register their businesses, file reports, pay taxes, and more. Understanding this system and keeping track of taxes and required annual reports is essential for entrepreneurs in the state. To ensure you meet your obligations, review some of the annual requirements below.

Arkansas LLC Annual Franchise Tax Report

Regardless of the industry and how much money they make, every Arkansas LLC must file an annual report and pay a flat-rate tax of $150 every year. This is the State's Annual LLC Franchise Tax Report.

Register for Taxes With the AR Department of Finance and Administration

Arkansas business owners need to register with the Department of Finance and Administration. LLC owners in the state need their Federal Tax ID number (EIN) from the IRS before they can register for taxes.

Sales Tax Identification Number

The Arkansas Sales Tax ID Number tracks goods and/or services that are sold in the state. LLC owners can call the Department of Finance and Administration at 501-682-1895 to confirm their Sales Tax Identification Number.

What Other Taxes/Forms Are Due?

Which taxes and forms you need to submit depends on your industry, the business's location, how the IRS taxes you, and whether you have employees. In addition to local taxes, here are a few taxes and forms you might have to submit this year:

  • Sales and Use Tax
  • Income Tax
  • Partnership and LLC Tax
  • Miscellaneous Tax (i.e., timber, cigarettes, farming, and real property tax)
  • Individual Estimated Tax
  • Income Withholding Tax
  • Motor Fuel Tax
  • Motor Carrier Fuel Tax

Arkansas Pass-Through Entity Tax (PET) Act

Arkansas introduced the Pass-Through Entity Tax (PET) Act as a response to the federal SALT deduction cap. This act allows eligible S corporations, partnerships, and LLCs taxed as partnerships or S corporations to elect to pay state income tax at the entity level, rather than passing that liability to individual owners.

This election can result in a significant federal tax benefit because the business can deduct the full amount of state taxes paid, which would otherwise be limited for individual taxpayers under federal law. To opt in:

  • File through the Arkansas ATAP system each year before the tax deadline.
  • The election applies for that tax year only, and a new election must be filed annually.
  • Estimated tax payments can also be made directly through ATAP.

This structure is designed to ease compliance for Arkansas business owners while aligning state tax payments with IRS-approved frameworks.

Recommendation to Keep Arkansas LLC in Compliance

It can be difficult to understand your Arkansas tax obligations, but overlooking payments or failing to file required reports can harm your LLC. You can hire a tax professional for help with this. This is often the best way to ensure that your Arkansas LLC is compliant, and a tax adviser can answer any other questions you have.

Using Arkansas ATAP for Tax Management

The Arkansas Taxpayer Access Point (ATAP) is the central online portal managed by the Arkansas Department of Finance and Administration (DFA). It enables business owners to:

  • Register new businesses for tax accounts.
  • File and amend various state tax returns.
  • View payment histories and correspondence.
  • Submit franchise, sales, and use tax reports.
  • Update mailing or contact information.

Business owners can access ATAP anytime to stay current on all tax filings and due dates. The platform supports secure payments through electronic funds transfer (EFT), simplifying compliance with monthly, quarterly, and annual tax obligations.

How to Register and File Online for Sales Tax Permit

To register and file online for a sales tax permit, follow these steps:

  1. Contact the IRS for a FEIN number if your LLC is owned in partnership with at least one other person. If you're the sole owner of the LLC, use your Social Security number instead. If you have questions about business registration, contact the Secretary of State (501-682-3409 or 888-233-0325).
  2. If you want to apply online, you'll need an NAICS code. You can get your NAICS code online. Simply input your business type to retrieve the code.
  3. With your FEIN or Social Security number handy, go to the ATAP. Click the “Register New Business” link at the bottom left.
  4. Follow the prompts and input information as needed to complete the Arkansas ATAP application.
  5. After registering, you'll be charged a $50 one-time, nonrefundable fee to apply. You can only pay from your checking or savings account.
  6. After submitting the application, the Department of Finance and Administration will process the information. The owner will receive a confirmation when this is complete.
  7. After receiving confirmation, go back to ATAP. You can now log in with the provided ID. Follow the website prompts to proceed.
  8. From the ATAP dashboard, you can file reports, pay taxes, and update your account.

The previous month's taxes are due on the 20th of each month. Taxes must be filed and paid by that date. Call 501-682-1895 if you have any questions about the registration process.

Arkansas Business Taxes Managed Through ATAP

Through ATAP, business owners can manage several tax types beyond the standard sales and use tax, including:

  • Withholding Tax: For employers who deduct income tax from employees’ wages.
  • Franchise Tax: The $150 annual payment required of all LLCs and corporations.
  • Excise and Miscellaneous Taxes: Including motor fuel, tobacco, and alcohol-related taxes.
  • Pass-Through Entity Tax: For businesses electing to pay income tax at the entity level.

Each tax type has specific due dates, and penalties may apply for late filing. The ATAP portal’s dashboard provides reminders and allows businesses to set up recurring payments to maintain compliance.

How to Register and File by Paper for Sales Tax Permit

As with filing online, you need an FEIN number from the IRS if the LLC is a partnership with at least one person. Also just like filing online, you can use a Social Security number in place of the FEIN if you are the LLC's sole proprietor.

From the Arkansas Department of Finance and Administration, you can print and mail the AR-1 Combined Business Tax Form and Instructions. After printing, complete the form and mail it along with a $50.00 money order or check. You can find the address on the Instruction Form.

The mail-in application also requires an NAICS code. To get the NAICS code, follow the same process for completing your application online. Simply go to the U.S. Census Bureau's website and search based on your business type.

Recent Legislative Updates Affecting Arkansas Businesses

Recent legislation in Arkansas underscores the importance of staying compliant with both tax and privacy obligations. In 2025, the Arkansas Children and Teens’ Online Privacy Protection Act introduced stricter rules on data collection for minors, requiring online platforms to verify users’ ages and protect children’s data privacy.

Additionally, amendments to the Arkansas Social Media Safety Act clarified regulatory boundaries following a federal injunction, emphasizing transparency and parental controls for minors’ social media access.

While these laws primarily target online privacy and digital activity, businesses operating online within Arkansas—especially those using ATAP for digital filings or e-commerce—should ensure their practices align with these evolving state requirements.

Frequently Asked Questions

  1. What is Arkansas ATAP used for?
    ATAP is the Arkansas Taxpayer Access Point, an online system where businesses can register, file, and pay state taxes including franchise, withholding, and sales tax.
  2. Who manages ATAP?
    The Arkansas Department of Finance and Administration (DFA) manages ATAP and provides support for business tax compliance and registration.
  3. Can I file franchise and income taxes through ATAP?
    Yes. ATAP supports filing for the Annual Franchise Tax Report, sales and use tax, and income withholding.
  4. What is the Arkansas Pass-Through Entity Tax Act?
    It allows eligible pass-through entities (LLCs, S-corps, and partnerships) to pay income tax at the entity level, offering potential federal tax advantages.
  5. Are there new privacy laws affecting Arkansas businesses?
    Yes. Recent laws such as the Arkansas Children and Teens’ Online Privacy Protection Act and amendments to the Social Media Safety Act affect businesses operating online, especially those handling user data or offering digital services to minors.

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