Arkansas is known both as ‘The Land of Opportunity’ and ‘The Natural State,’ and these nicknames are truly befitting of a state with as much natural beauty and entrepreneurial spirit as Arkansas. With fifty-two state parks, including Hot Springs National Park, which is the nation’s first national park, and a strong, thriving culture, Arkansas continues to attract tourists from all across America. Arkansas is also known as the birthplace of multiple Fortune 500 companies, including Walmart, Tyson Foods, and Dillard’s.
But even if you are just a small, one-person company operating out of your garage, Arkansas is still one of the best states to found a business for several reasons.
1. Few regulations - Don’t get us wrong, some regulations do make sense, but many times an overly regulatory atmosphere winds up killing new small businesses. But in Arkansas, the cost of doing business is very low, which helps spur on the founding of new companies. It also only costs $50 for a domestic company to incorporate, making it fairly cheap for a new business owner to protect their assets.
2. Strong support – The University at Arkansas in Little Rock has a statewide business training center that hosts seminars all across the state. These seminars typically require a small fee, but utilize the experience and knowledge of well-known business men and women, inviting them to speak and help train the next generation of small business owners. Their methods clearly work, as ASBTDC clients have a 15.9% higher growth rate than the average business in Arkansas. Small businesses also rated Arkansas’s online resources as the best in the country.
3. Taxes - No matter where you go, you are going to have to pay taxes. Arkansas, luckily, has a fairly low tax rate, with the highest corporate income rate set at 6.5% for corporations making more than $100,000/yr. Arkansas’s tax code also earned an A- from Thumbtack thank to its understandability.
Incorporating or forming an LLC in Arkansas is, clearly, a great idea. The state is more than happy to support new, small business, there aren’t an overabundance of regulations to contend with, and the tax code is relatively business-friendly. Incorporating or forming an LLC also provides you with legal and fiscal protection and helps separate your business from your personal life.
If you have any questions about filing in Arkansas, feel free to give us a call at 1(877) 692-6772, or leave a comment below!