Arkansas ATAP: Everything You Need to Know
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. 3 min read
2. Register for Taxes With the AR Department of Finance and Administration
3. Sales Tax Identification Number
4. What Other Taxes/Forms Are Due?
5. Recommendation to Keep Arkansas LLC in Compliance
6. How to Register and File Online for Sales Tax Permit
7. How to Register and File by Paper for Sales Tax Permit
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
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.
How to Register and File Online for Sales Tax Permit
To register and file online for a sales tax permit, follow these steps:
- 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).
- 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.
- With your FEIN or Social Security number handy, go to the ATAP. Click the “Register New Business” link at the bottom left.
- Follow the prompts and input information as needed to complete the Arkansas ATAP application.
- After registering, you'll be charged a $50 one-time, nonrefundable fee to apply. You can only pay from your checking or savings account.
- After submitting the application, the Department of Finance and Administration will process the information. The owner will receive a confirmation when this is complete.
- After receiving confirmation, go back to ATAP. You can now log in with the provided ID. Follow the website prompts to proceed.
- 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.
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.
If you need help with the Arkansas ATAP, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.