Arkansas Business Tax Requirements
Understand Arkansas business taxes and simplify your filing process. Learn which forms to file, important deadlines, extensions, tax rates, and penalties to keep your business on track.
What are the Business Tax Forms in Arkansas?
The tax forms you need to file in Arkansas depend on your business structure. Here’s a breakdown:
Sole Proprietorship &
Single-Member LLC
- Form AR1000F – Arkansas Individual Income Tax Return
- Schedule C – Profit or Loss from Business (attached to AR1000)
- Form AR1000ES - Estimated tax for Individuals
Partnership & Multi-Member LLC
- Form AR1050 – Partnership Income Tax Return
- Schedule K-1 (Form AR 1050) – Partner’s Share of Income, Deductions, Credits, etc.
C Corporation
- Form AR1100CT –Arkansas Corporation Income Tax Return
- Form AR1100REC – Net Operating Loss Carryover Worksheet
- Form AR1100ESCT – Corporation Estimated Tax Payment Voucher
S Corporation
- Form AR1100S – S Corporation Income Tax Return
Employer & Withholding Forms
- Form AR941PT – Employer’s Quarterly Withholding Report
- Form ARW3 – Annual Reconciliation of Income Tax Withheld
- Form W2 – Wage and Tax Statement
Sales & Use Tax Forms
- Form ET-1 – Excise Tax Report
- Form ST-370 – Direct Pay Permit Application
Additional Arkansas Business Tax Forms
- Form AR2220 – Underpayment of Estimated Tax by Corporations
- Form AR1000NR – Nonresident and Part-Year Resident Income Tax Return
Unemployment Insurance Tax
- Form DWS-ARK-209B – Employer’s Quarterly Contribution and Wage Report
What are the Deadlines for the Business Tax Forms in Arkansas?
Timely filing is critical to avoid penalties. Here are the standard deadlines:
| C Corporation | Return due date: 15th day of 4th month |
| Payment due date: 15th day of 4th month | |
| S Corporation | Return due date: 15th day of 3rd month |
| Payment due date: 15th day of 3rd month | |
| Partnerships / Multi-Member LLCs | Return due date: 15th day of 3rd month |
| Sole Proprietorships | Return due date: April 15 (same as individual income tax deadline) |
| Limited Liability Companies | Return due date: 15th day of the 4th month |
| Franchise Tax / Annual Report | Return due date: May 1 of each year |
| Payment due date: May 1 of each year | |
| Employer Withholding Tax | Return due date:
|
| Sales and Use Tax | Return due date:
|
| Unemployment Insurance Tax | Return due date: Due by the last day of the month following the quarter end (April 30, July 31, October 31, January 31) |
What Business Extension Forms are required in Arkansas?
Business Type
- C Corporations & S corporation
- Partnerships & LLCs taxed as Partnerships
- Pass- Through Entities (PTE)
Pass- Through Entities (PTE) Form AR1155-PET Business tax payments can also be made online through the Arkansas Taxpayer Access Point (ATAP) at:
What are the Extended due dates for Business Tax
Forms in Arkansas?
C Corporations
Extended due date:
15th day
of 10th month
S Corporations
Extended due date:
15th day
of 9th month
Partnerships / Multi-Member LLCs
Extended due date:
15th day
of 9th month
Sole Proprietorships
Extended due date:
October 15
Employer Withholding Tax
Extended due date:
- If taxed as corporation – 15th day of the 10th month
- If taxed as partnership – 15th day of the 9th month
Franchise Tax / Annual Report
Extended due date:
No extension allowed
Employer Withholding Tax
Extended due date:
No extension permitted
Sales and Use Tax
Extended due date:
No extension permitted
Unemployment Insurance Tax
Extended due date:
No extension permitted
Taxes owed must still be paid by the original due date to avoid penalties and interest
Arkansas Business Tax Extension Filing Requirements
To qualify for a business tax extension in Arkansas, your business must:
- File by the original due date to avoid penalties and interest—extensions apply only to filing, not payments.
- Submit the correct Arkansas extension form based on your entity type (Form AR1155 for corporations or Form AR1055-PE for partnerships and multi-member LLCs).
- Estimate and pay any taxes owed by the original return due date, even if you file for an extension.
- Attach a copy of your federal extension (Form 7004) if applicable—Arkansas automatically honors a valid federal extension.
- Meet the 6-month extension window, typically extending your filing deadline but not your payment deadline.
- Keep proof of filing and payment confirmations from the Arkansas Department of Finance and Administration (DFA) for compliance.
Arkansas Business Tax Rates
Business tax rates vary depending on your entity type:
C Corporations
- 1.0% on first $3,000 of net taxable income (NTI)
- 2.0% on $3,001–$6,000
- 3.0% on $6,001–$11,000
- Top rate: 4.8% on income over $11,000 (tax years beginning Jan 1, 2024)
S Corporation
Pass-Through
income taxed at owner level, not entity level in most cases
Pass – Through Entity
- 4.9% on income (tax years beginning 2022)
- 2.45% on capital gains (tax years beginning 2022)
Sales & Use Tax
6.50%
state base rate
Estimated Tax Payments for Arkansas Businesses
Businesses must make estimated tax payments if they expect to owe $1,000 or more
in state income tax for the year. This applies to:
Payment Deadlines
1st payment
April 15
2nd payment
June 15
3rd Payment
Sept 15
4th Payment
Dec 15
Who should pay
C Corporations & S Corporations
If expected tax > $1,000
Partnerships & Sole Proprietors
Pay using Form AR1000ES (Estimated Income Tax Payment Voucher)
Limited Liability Companies (LLCs)
Based on total income; if taxed as a corporation, use corporate rates; if pass-through, payment is made at owner level.
Missed Payments: Late or missed estimated tax payments may result in interest and penalties from the Arkansas DFA.
Payments can be made online through the Arkansas Taxpayer Access Point (ATAP) system.
Penalties and Interest for Business in Arkansas
If your business doesn’t pay the required tax by the original due date,
penalties and interest may apply—even if you’ve filed an extension.
Late Payment Penalty
1% of the unpaid tax for each month (or part of a month) the payment is late, up to a maximum of 35% of the tax due.
Late Filing Penalty
5% of the unpaid tax for each month (or part of a month) the return is late, up to a maximum of 35% of the unpaid amount.
Interest
Interest is charged on any unpaid tax balance at a rate of 10% per year, calculated from the original due date until the tax is fully paid.
Additional Penalties
- Negligence or disregard of tax rules: 10% of the tax deficiency.
- Fraudulent underpayment: 50% of the tax deficiency.
- Corporate Franchise Tax: $25 penalty plus 10% annual interest on unpaid tax.
How TaxZerone can Help You?
TaxZerone supports federal tax filing and also guides you through state-specific requirements to help your business stay compliant. While Arkansas business taxes must be filed directly with the Department of Finance and Administration (DFA), TaxZerone provides the guidance you need to:
- Understand which Arkansas business tax forms apply to your entity type
- Know your state deadlines and payment requirements
- Prepare for extensions and estimated tax payments
- Avoid penalties by staying informed and organized
With TaxZerone, you can manage your federal filings easilywhile ensuring your Arkansas state obligations are met on time and correctly.
Start Filing with Confidence Today!
File your federal returns easily with TaxZerone and get guided support
for your Arkansas business taxes — all in one place.
Stay compliant, avoid penalties, and simplify your business tax filing process.
Frequently Asked Questions
1. Does Arkansas recognize an automatic federal extension (Form 7004)?
- Interest rate: 10% per year (calculated daily at 0.00027397)
- Penalty for late payment: 5% per month on unpaid tax
2. Do I need to attach my federal income tax return with the Arkansas return?
3. What if my business has no income or is inactive?
4. What happens if I don’t file my business taxes in Arkansas?
Failing to file can result in penalties up to 35% of the unpaid tax, 10% annual interest, and possible loss of good standing with the state, which can impact business licenses or registrations.
