How to Dissolve an LLC in Arkansas (2026)

To dissolve an LLC in Arkansas, file Articles of Dissolution with the Arkansas Secretary of State's Business and Commercial Services division, for a $50 fee, accompanied by a final franchise tax report. The Arkansas-specific thing to understand is the franchise tax: Arkansas charges LLCs a flat $150 annual franchise tax, and unusually, it keeps accruing even after the state revokes a delinquent LLC. Administrative revocation doesn't stop the meter, only formal dissolution does.

Here's the full process and the Arkansas-specific specifics.

Arkansas LLC dissolution at a glance

Step 1: Vote to dissolve and document it

Check your operating agreement for the dissolution procedure and hold the required member vote, recording the resolution. The documented decision is the basis for the filing.

Step 2: Wind up the business and settle debts

Wind up the LLC's affairs: notify known claimants and give them a period to submit claims, pay or provide for the company's debts, and distribute remaining assets to members, creditors first. Distributing assets ahead of creditors can create personal exposure.

Step 3: File the final franchise tax report and clear the franchise tax

This is the Arkansas-specific gating step. Arkansas requires all LLCs to pay an annual franchise tax (a flat $150), administered by the Secretary of State's Business and Commercial Services division, and you must file a final franchise tax report and be current before, or along with, dissolving. Per Arkansas law, you can't make other BCS filings while franchise tax is owed, so any back franchise tax must be cleared. Prepare the final franchise tax report to submit alongside your Articles of Dissolution.

Step 4: Handle final taxes

Arkansas doesn't require a separate tax-clearance certificate from the Department of Finance and Administration to dissolve. File your final Arkansas and federal returns, marked final, and close your sales-tax and withholding accounts. The franchise tax (above) is the item tied directly to the Secretary of State; the income/sales tax side is handled with the state revenue agency.

Step 5: File the Articles of Dissolution

File the Articles of Dissolution with Business and Commercial Services, $50, online, by mail, or in person, together with the final franchise tax report. Mailed dissolutions typically process in about two business days; walk-in filings can be handled while you wait. Once accepted, the LLC is removed from the Secretary of State's active records.

Step 6: Close accounts, licenses, and registrations

Finish by canceling local business licenses and permits, closing business bank accounts, canceling the EIN with the IRS if appropriate, and withdrawing any out-of-state registrations.

The Arkansas wrinkle: the franchise tax that survives revocation

Arkansas's defining feature is its franchise tax, and specifically how persistent it is. Arkansas charges every LLC a flat $150 annual franchise tax under the Arkansas Corporate Franchise Tax Act, and here's the unusual part: the franchise tax continues to accrue even for revoked businesses, until the entity is formally dissolved, withdrawn, or merged. In most states, if you ignore your obligations long enough, the state administratively dissolves the LLC, which at least stops new charges. Arkansas doesn't let revocation end the franchise tax, the $150 keeps building even after the LLC has been revoked for non-payment.

That makes formal dissolution the only way to truly stop the clock. An owner who assumes "the state will just revoke it and that's that" is mistaken in Arkansas: revocation strips the LLC's authority but leaves the franchise tax accruing, plus penalties and interest. And because you can't make other BCS filings while franchise tax is owed, you'll have to clear the balance to dissolve. This is the Arkansas version of the trap in can you just walk away from an LLC: walking away doesn't end the $150-per-year liability, only filing the Articles of Dissolution with a final franchise tax report does. So dissolve promptly and file that final report.

Frequently asked questions

How much does it cost to dissolve an Arkansas LLC?

The Articles of Dissolution cost $50 (online filing may be slightly less). On top of that, you must be current on Arkansas's flat $150 annual franchise tax and file a final franchise tax report with the dissolution, so a delinquent LLC owes any back franchise tax (plus penalties) before it can close. For a current LLC, $50 plus the final franchise tax report is the cost.

Does franchise tax stop if Arkansas revokes my LLC?

No, and this is the key Arkansas difference. The franchise tax continues to accrue even after the state revokes a delinquent LLC, until the entity is formally dissolved, withdrawn, or merged. Unlike states where administrative dissolution stops the fees, Arkansas keeps the $150 annual franchise tax building post-revocation. The only way to stop it is to formally dissolve and file the final franchise tax report.

Do I need tax clearance to dissolve an Arkansas LLC?

Not a separate clearance certificate. Arkansas doesn't require you to obtain a tax-clearance certificate from the Department of Finance and Administration to dissolve. But you must file a final franchise tax report and be current on the franchise tax with the Secretary of State, and you can't complete the dissolution while franchise tax is owed, so clearing that balance functions as the practical prerequisite.

This page covers the Arkansas specifics; for the general framework, see our complete guide to how to dissolve an LLC, and for nearby states, Oklahoma and Missouri. Arkansas's official filing is at the Arkansas Secretary of State, which also administers the franchise tax.