Why incorporate in Arkansas

Business Information & Rankings

Arkansas ranks 1st in Business Climate for States in the South (Southern Business and Development)
Arkansas has the lowest cost of doing business of all Southern States. Business Facilities)
Arkansas is home to five top Fortune 500 companies including Alltel, Dillard?s, Murphy Oil, Tyson Foods and Wal-Mart. In all, 112 Fortune 500 companies have more than 310 facilities in Arkansas.

Cost of Living Index

For Jonesboro, AR (2004):	Index Score
Composite:	85.4
Housing:	82.7
Utilities:	90.6
Misc. Goods & Services:	93.1

Crime Rate

Arkansas is ranked 29^th in crime. (FBI, 2003)

Fees & Taxes

Business Inventory Tax

Arkansas does tax business inventory which is assessed on an average value.

Corporate Franchise Tax

Arkansas charges an annual franchise tax. No corporation is expected to pay a tax of less than $59 or more than $1,075,000.

Corporate Income Tax

Corporations are subject to tax on net income at the rates listed below. The portion of income that exceeds each category is taxed at the next higher rate.

First	$3.000	1.0 %
Next	$3.000	2.0 %
Next	$5.000	3.0 %
Next	$14.000	5.0 %
Next	$75.000	6.0 %
Over	$100.000	6.5 %

Personal Income Tax

Varies starting at 1% for the first $2,999 up to7% for income over 25,000.

Personal Property Tax

Taxable. The State does not have a property tax; however, some counties do collect property tax for revenue generating purposes.

State Sales and Use Tax

Base Rate: 5.125%
Machinery Rate: None
Exemption - machinery and equipment used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at Arkansas manufacturing or processing plants or facilities.

Unemployment Insurance

Arkansas' new employers' tax rate is 3.6% for 3 years.

Why incorporate in Arkansas?