Limited liability companies in Arkansas are the most popular types of business entities in this state mainly because of the easiest incorporation procedure, low taxes and fees. The registration process starts with the Arkansas Secretary of State, if all the requirements are met and the necessary documents approved. If you want to set up a company in USA and especially in Arkansas, we suggest you consider the following general guide to company incorporation, considering that complete assistance can be obtained on request from our team of specialists in company incorporation in America.

Name reservation for an LLC in Arkansas

When forming a company in Arkansas, one should consider a few important guidelines related to the name reservation. This must be unique and contain the LLC, L.L.C. abbreviations or even the entire title: Limited Liability Company. A name search and a domain reservation are necessary when starting the business in Arkansas. One should consider that for opening a company in Arkansas there are no minimum share capital requirements.

A registered agent for your company in Arkansas

If you want to start a business in USA, especially in Arkansas, you must appoint an agent who will represent your business from a legal point of view. We mention that a registered agent can be whether a natural person, who will act through a power of attorney, or a company with a physical address in Arkansas. Also, even the owners of brand-new companies in Arkansas can act like registered agents. Please keep in mind that our company formation agents in USA can be the legal representatives for your business in Arkansas.

Obtaining the Employer Identification Number in Arkansas

The Federal Tax Identification Number or the Employer Identification Number represents the social security number of a business registered in Arkansas. It is issued by the Internal Revenue Service (IRS) in USA as soon as the incorporation process took place.

The business bank account for your company in Arkansas

Each company with activities in Arkansas must open a business bank account. Providing the company’s documents, among many other ones the bank required, should be sufficient for opening a business account. This is also linked to a business bank card and internet banking services in order to properly control the financial activities online.

Sales tax in Arkansas

Companies registered in Arkansas can perform their activities if they have applied for a sales tax permit with the Department of Finance in Arkansas. This kind of tax is available for companies which intend to sell goods and services on the market. On the other hand, we remind that the USA company formation can be an easy process with less bureaucracy and time consuming, if you address your requests to our local representatives for company incorporation in America.

Create a website for your company in Arkansas

Without a doubt, the internet is the proper place for creating awareness for your company in Arkansas. A website can be a suitable solution for both businesses at the beginning of the road or with history on the market. Promoting the activities on the internet must be among the priorities of business owners in Arkansas. There are numerous website designers who can successfully implement your business online with the help of simple and creative pages. Also, you should consider using the social media sector for business promoting.

Salaries for companies in Arkansas

The workforce in Arkansas can be taken into consideration by all investors who want to place their activities in the state in varied fields. The average salaries per year will depend on the sectors where the activities are performed. One can gain between $26,000 as an administrative specialist and $200,000 as an owner operator driver.

A virtual office for your company in Arkansas

Besides choosing a traditional office for business in Arkansas, a foreign entrepreneur can benefit from the services of a virtual office, especially if he/she wants to control the firm from abroad. A notable business address, a local phone number and correspondence related services are among facilities offered through a virtual office in Arkansas. Our company formation agents in USA can offer virtual office services in Arkansas on request.

Do I need accounting services for my company?

Yes, it is recommended to have an accounting department in your firm or better to externalize such services by hiring an experienced accountant in this matter. Such an advisor can take care of the accounting matters in your firm, such as payroll, bookkeeping, tax registration, tax filings and a complete track of your finances in the firm. A business can be controlled in an easier manner and extremely efficient if an accounting firm takes care of the daily financial activities.

Also, the same team can provide you with a recommendation if it is the case for legal tax minimization methods, in order for you to direct your investments to other departments too. All the incomes and expenses can be controlled by your accountant who can also help you with the budget and the overheads, in order for you to create the business goals. Managing the budget in a serious manner and keeping an accurate business account are important to any kind of firm, whether it is at the beginning of the road or it is a large company in Arkansas. Feel free to talk to our team of advisors and find out more about the accounting services we can offer for your company.

Insurance for your company in Arkansas

Growing the company in Arkansas with low risks is definitely a target for both foreign and local investors. In this direction, a business insurance can help. For instance, a general liability insurance is an ample insurance meant to protect your company from varied risks. This is also called commercial general liability insurance which can be purchased as a standalone policy or as a business owner’s policy. This kind of insurance covers the following matters:

• property damage in the case of personal or real property injury/ damage;
• the medical payments for the cases of accidents occurred within the company;
• the cases of advertising liability damages if the company violated another one’s copyright;
• all the legal defences and in which the company is involved.

It is good to know that intentional acts are not covered by the general liability insurance, however, it is best to talk to our advisors and find out how you can protect your company in Arkansas.

Licenses and permits for your company in Arkansas

Investors looking to open a company in agriculture, aviation, radio and television, logistics and transportation, maritime transportation, mining or fishery should know that licenses and permits are necessary before running the activities. Electricians, brokers, accountants, contractors, doctors or lawyers who want to work as sole traders might need to pass a state examination before any practice. Depending on the nature of the business, some might need local permits like the ones issued by the fire department or the ones necessary for selling food and alcohol. Please feel free to address your inquiries to our team of consultants in company formation in USA and also ask for additional information in this matter. If you are interested in opening a company in USA, do not hesitate to ask for support from our team.

Tax report in Arkansas

All companies with establishments in Arkansas and having financial activities should register for tax purposes and submit the tax report with the Arkansas State Business Income Tax. There are specific forms for personal and company income tax returns, depending on the business type. For instance, the Partnership Tax Return is available for partnerships registered in Arkansas.

As for the limited liability companies in Arkansas, the members will have to pay the taxes imposed on their share of LLC income and file a corporation return or a partnership return, depending on the way in which the LLC is categorized, as a corporation or as a partnership. The state employer taxes are also in the attention of owners of companies in Arkansas. An accounting firm in Arkansas can handle all the tax requirements for your company, therefore, do not hesitate to get in touch with our team of advisors and find out more about the support we can provide for your business.

Why you should open a company in Arkansas

The state of Arkansas provides varied benefits for both local and foreign investors who can easily set up companies, with fewer formalities, low fees and a favorable taxation system. The corporate income tax in Arkansas is set at a maximum rate of 6.5%, a lower level compared to other states in America.

Most businesses in Arkansas do not need a trade license, another advantage offered for entrepreneurs in this state. Moreover, in Arkansas, there is no need for original signatures when filling the Articles of Association as they can be mailed later to the address of the representative agent in charge with the business from a legal point of view. Little Rock, Jonesboro, Conway, Fayetteville, Rogers, North Little Rock or Hot Springs are a few of the important cities in Arkansas which are preferred for business by foreign investors. As for the sectors of interest, entrepreneurs from abroad can easily set up their operations in fields like agriculture manufacturing, textiles, industrial machinery, transportation, food and beverages, and many more. Starting a business in Arkansas needs complete attention in terms of registration, a matter where our consultants can offer assistance.

The state of Arkansas welcomes foreign investments in all important sectors and sustains the business climate through a series of incentives for small, medium and large entrepreneurs. The tax structure in Arkansas is not complex, but it is recommended to have an idea about the taxes you need to pay as a business person or as an individual living in this state. If you want to open a company in USA, especially in Arkansas, we suggest you to ask for assistance and information from our team of company incorporation specialists in USA.

The sales tax in Arkansas

The general sales tax in Arkansas is imposed on the sale of products and services in this state and it is settled at 6.5% rate. Just like most American states which impose a sales tax, Arkansas respects the same rule regarding the municipalities that can collect their own sales tax, not exceeding 3.5%.

What is the corporate tax in Arkansas?

Businesses in Arkansas need to align with the tax requirements imposed by the legislation and respect the regulations of the Arkansas Department of Finance and Administration regarding the corporate tax and its calculation. The taxable income for companies in Arkansas is allocated in compliance with the payrolls and property percentage operated in the American state. The following table explains how the incomes are taxed for companies in Arkansas:

Taxable Income                               Tax Rate
up to $3,000                                          1%
between $3,001-$6,000                        2%
between $6,0001-$11,000                    3%
between $11,001-$25,000                    5%
between $25,001-$100,000        $490+6%
>$100,000                                 $5,440+6%

What are the taxes for individuals in Arkansas?

The state of Arkansas adopted a tax system that involves the collection of taxes on personal incomes in six brackets, as seen in this table:

Taxable Income                     Tax Rate
up to $4,299                              0.9%
between $4,300-$8,399            2.4%
between $8,400-$12,699         3.4%
between $12,700-$21,099       4.4%
between $21,100-$35,299         6%
>$35,300                                     7%

For a better understanding of the taxation regime in Arkansas, please feel free to talk to our agents in company formation in USA. Also, our advisors can help investors start a business in USA in any chosen state.

Does Arkansas impose an inheritance tax?

No, the state of Arkansas imposes no inheritance tax and aligns with other American states for which such tax does not exist.

Paying the taxes in Arkansas

Companies and individuals living in Arkansas can pay the imposed taxes at the local offices of the Arkansas Department of Finance and Administration or online using debit or credit cards.