702-871-8678
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 29th 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.