There has been a surge in Incorporation in Arkansas of late and there are several factors that are playing catalyst to the surge. The convenient geography, abundance of natural resources, a positive business climate, availability of strong workforce, and low cost of living are some of the key factors that make Arkansas an extremely alluring destination for setting up a new business.
According to a survey conducted by U.S. Small Business Administration, 240,123 small businesses were formed in the state in 2015 and that constitutes 96.6% of Arkansas businesses. Company Incorporation in Arkansas increased in 2016 with the number of small businesses in the state recording 244,977 business entities that constitutes 99.3% of Arkansas businesses.
Why Choose Arkansas for Incorporation?
Should you set up a company in Arkansas? The fact that there are a large number of Fortune 500 companies headquartered in Arkansas and this is solely because the state provides a business climate that is extremely favorable. There are several salient benefits for small and medium sized businesses (SMEs) and some of them are:
One of the highlights of company incorporation in Arkansas is tax competitiveness the state provides to business entities. Some of the key benefits for businesses include:
- One of the lowest local property taxes
- Budgeting through the Revenue Stabilization Act (RSA)
- Working on comprehensive tax reforms
- Road to improvement in corporate income tax structure
Arkansas High Impact Non-Tax Incentives
One of the reasons behind successful incorporation in Arkansas is the number of non-tax incentives, the state provides to business entities. Some of the salient incentives include:
Quick Action Closing Fund
It is a discretionary deal closing fund initiated by the state of Arkansas and this ensures grant funds are made available to businesses that are planning to establish competitive high-impact projects. This fund can be provided directly to a business entity.
Create Rebate Program
This program is being offered by Arkansas Economic Development Commission (AEDC) for competitive projects. The Create Rebate program can provide businesses with almost 5% payroll rebate
How do you Incorporate in Arkansas?
Company incorporation in Arkansas has been fuelled by a number of factors including benefits that business entities can derive from in the state, incentive programs, favorable tax climate, and strong budget for economic development programs. The question is whether the process of business registration in Arkansas is easy or difficult.
Let’s take a look at the step by step procedure towards Incorporation in Arkansas
- Type of Business: There is a wide variety of businesses that you can establish in the state. You can set up a company in Arkansas with ease and the type of businesses to choose from includes Partnership, Sole Proprietorship, General Partnership (GP), Limited Partnership (LP), Limited Liability Partnership (LLP), Limited Liability Limited Partnership (LLLP), Limited Liability Company (LLC), Corporation, Nonprofit Corporation, S Corporation, and Benefit Corporation. It is important to identify in advance the type of business you want to set up in Arkansas.
- Business Entity Name: The business entity naming process is as important as company incorporation in Arkansas or registration of business process. According to 2015 Arkansas Code, § 4-33-401, you have to ensure the name of your Arkansas Corporation contains the words “corporation”, “incorporated” or an abbreviation like “inc.” or “corp.” You have to not only identify a name but also ensure it is not in use. You can search the name database of Arkansas Secretary of State.
To ensure company incorporation in Arkansas, you will have to reserve or register the chosen business name online or by downloading name reservation form, in accordance to AR Code § 4-33-403 (2015).
- Registered Agent: In accordance to 2010 Arkansas Code, § 4-28-214, a corporation is required to maintain a registered agent in the state. There are different types of services, a registered agent provides including initiating incorporation in Arkansas. As one of the top registered agents in Arkansas, incparadise.net, can also receive any and all legal business related paperwork on your behalf.
- Articles of Incorporation or Certificate of Authority: You can form a domestic or foreign Arkansas Corporation. In case of domestic Corporation, you will be required to fill out and submit the ” Articles of Incorporation” (DN-01 form) in accordance to the small business entity tax pass through act 1003 of 1993 and Arkansas Code Annotated § 4-27-202. If you want to form a foreign LLC then you need to submit the application for ” Certificate of Authority” (F-01 form) in accordance to the provisions of Act 958 of 1987 and Arkansas Code Annotated § 4-27-1503. We can always file on your behalf through the standard process of online or through expedited process.
As a part of the process of company incorporation in Arkansas, we will ensure, you receive a Certified Copy verifying the state of Arkansas has filed as well as formed your corporation.
Costs and Fees associated with Arkansas Incorporation
What would it cost to set up a company in Arkansas?
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