Arkansas

As with the federal government of the United States, political power in Arkansas is divided into three branches: Legislative, Executive, and Judicial. Each officer's term is four years long.

• The Arkansas General Assembly is the state's bicameral bodies of legislators, composed of the Senate and House of Representatives.
• The Executive consists of the Governor of Arkansas and six other elected executive positions.
• Arkansas's judicial branch includes five court systems: Arkansas Supreme Court, Arkansas Court of Appeals, Circuit Courts, District Courts and City Courts.

In 2019, the GDP of Arkansas was about 119.44 billion USD, per capita GDP of Arkansas was 39,580 USD.

Agriculture is the earliest industry in Arkansas and accounts for a major part of the state's economy. Forestry remains strong in the Arkansas Timberlands, and the state ranks fourth nationally and first in the South in softwood lumber production. Other important sectors include tourism, transportation and logistics, aerospace, etc.

Currency:

United States Dollar (USD)

The business laws of Arkansas are user-friendly and often adopted by other states as a standard for testing business laws. As a result, the business laws of Arkansas are familiar to many lawyers both in the US and internationally. Arkansas has a common law system.

Type of Company/Corporation:

One IBC supply incorporation in Arkansas service with the common type Limited Liability Company (LLC) and C-Corp or S-Corp.

Business Restriction:

The use of the bank, trust, insurance, or reinsurance within the name of the LLC is generally prohibited as limited liability companies in most states are not allowed to engage in a banking or insurance business.

Company Name Restriction:

The name of each limited liability company as set forth in its certificate of formation: Shall contain the words "Limited Liability Company" or the abbreviation "L.L.C." or the designation "LLC";

• May contain the name of a member or manager;
• Must be such as to distinguish it upon the records in the office of the Secretary of State from the name on such records of any corporation, partnership, limited partnership, statutory trust or limited liability company reserved, registered, formed or organized under the laws of the State of Arkansas or qualified to do business.
• May contain the following words: "Company," "Association," "Club," "Foundation," "Fund," "Institute," "Society," "Union," "Syndicate," "Limited" or "Trust" (or abbreviations of like import).

Company Information privacy:

No public register of company officers.

Just 4 simple steps are given to start a business in Arkansas:

• Step 1: Select basic Resident/Founder nationality information and other additional services that you want (if any).
• Step 2: Register or log in and fill in the company names and director/ shareholder(s) and fill in the billing address and special request (if any).
• Step 3: Choose your payment method (We accept payment by Credit/Debit Card, PayPal, or Wire Transfer).
• Step 4: You will receive soft copies of necessary documents including Certificate of Incorporation, Business Registration, Memorandum and Articles of Association, etc. Then, your new company in Arkansas is ready to do business. You can bring the documents in the company kit to open a corporate bank account or we can help you with our long experience of Banking support service.

* These documents required to incorporate a company in Arkansas:

• Passport of each shareholder/beneficial owner and director;
• Proof of residential address of each director and shareholder (Must be in English or certified translation version);
• The proposed company names;
• The issued share capital and par value of shares.

Read more:

How to start a business in Arkansas, USA

Share Capital:

There is no minimum or a maximum number of authorized shares since Arkansas incorporation fees are not based on the share structure.

Director:

Only one director required

Shareholder:

Minimum number of shareholders is one

Arkansas company taxation:

Companies of primary interest to offshore investors are the corporation and the limited liability company (LLC). LLCs are a hybrid of a corporation and a partnership: they share the legal features of a corporation but may choose to be taxed as a corporation, partnership, or trust.

• Us Federal Taxation: US Limited Liability companies structured for partnership tax treatment with non-resident members and which conduct no business in the US and which have no US-source income are not subject to US federal income tax and are not required to file a US income tax return.
• State Taxation: US limited liability companies that conduct no business in the recommended states of formation with non-resident members are generally not subject to state income tax and are not required to file a state income tax return.

Financial statement

Local Agent:

Arkansas law requires that every business have Registered Agent in the State of Arkansas who may be either an individual resident or business that is authorised to do business in the State of Arkansas

Double Taxation Agreements:

Arkansas, as the state-level jurisdiction within the US, has no tax treaties with non-US jurisdictions or double tax treaties with other states in the US. Rather, in the case of individual taxpayers, double taxation is minimised by providing credits against Arkansas taxation for taxes paid in other states.

In the case of corporate taxpayers, double taxation is minimised through allocation and appointment rules related to the income of corporations engaged in multi-state business.

License Fee & Levy:

The application fee for obtaining a business license will vary between $50 to more than $1,000 depending on the type of business and amount and kind of inventory. Generally, business licenses are renewed annually.

The Arkansas (AR) state sales tax rate is currently 6.5%.

Read more:

• Arkansas trademark
• Arkansas business license

Payment, Company return due date

Corporations:

Arkansas corporation income tax returns are due by the 15th day of the 4th month following the end of the tax year. For calendar year taxpayers, this date is generally April 15. Getting a state tax extension will extend this filing deadline for 6 months, to October 15.

Limited Liability Company

The State of Arkansas requires you to file an annual franchise tax report for your LLC. The report is associated with the state's franchise tax that applies to most LLCs. The tax, payable to the Secretary of State, is $150. The franchise tax report, including the $150 tax payment, is due each year by May 1. There are penalties for late reports.