Secretary Of State Mark Martin: A Friendly Reminder Of One More Tax Deadline

Editor’s note: The following guest commentary was written by Arkansas Secretary of State Mark Martin.

While April 15th is now behind us, there is one more state tax that businesses in Arkansas have to be mindful of – franchise taxes. These annual taxes are due to the Business and Commercial Services Division of my office each year, and this year’s deadline is midnight on May 1st. To avoid getting hit with interest and fees for being late, I recommend getting this tax paid on time.

Every business in Arkansas is required to pay this annual tax, regardless of whether the business is considered foreign or domestic. To get clarity on how much you owe and to pay your tax, our website is the easiest place to go – sos.arkansas.gov. You can also call our office for help at (888) 233-0325 or get help in person by visiting our office us at the Victory Building in downtown Little Rock located at 1401 W Capitol Avenue, Suite 250.

Getting your franchise taxes paid on time is important for a couple reasons; first, it keeps your business from going into revoked status. Second, it saves your business money from the increased burden of fees and interest that can accrue on your principal balance. Third, and perhaps most important for entrepreneurs with multiple businesses, it will protect you from being denied the ability to start new businesses in the state of Arkansas.

To date, 44% of the approximately 126,000 businesses registered to operate in Arkansas have paid their franchise taxes resulting in $9 million in revenue for the state this year. This is on par with the pace of last year’s franchise tax collections.

By law, the first $8 million goes to our state General Fund with the remaining money going to the state’s Education Adequacy Fund. During my first term as Secretary of State, franchise taxes resulted in nearly $67 million being directed to education in Arkansas.

Don’t forget, franchise taxes are due by midnight, May 1st – you can pay online, by mail, or in person. If you need help, don’t forget to visit the website sos.arkansas.gov or give our Business and Commercial Services Division a call at (888) 233-0325.