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Legal Aspects of Doing Business in North America - 2nd Edition - Loose leaf
Legal Aspects of Doing Business in North America - 2nd Edition - Electronic
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Arkansas
Edward L Wright
Little Rock, Arkansas, United States
Introduction
The State of Arkansas is organized under the federal system outlined in the United States
Constitution. The state has its own constitution which provides for three branches of government
(legislative, judicial, executive). The legislature is bicameral. The executive
branch is headed by the governor and other constitutional officers. The judicial branch is a
three-tiered system of courts (trial courts, Court of Appeals, Supreme Court), with the
lowest tier divided into courts of equity and courts of law. Politically, the state is divided
into seventy-five counties, each of which has its own government, and several hundred
towns and cities each with its own government. Arkansas statutory law is found in the
Arkansas Statutes Annotated, divided by title, chapter and section.
Form of Business Enterprise
A foreign investor may conduct business in Arkansas under virtually any form of
enterprise, including agency, general partnership, limited partnership, corporation and
business trust.
Registration Requirements
Aforeign corporation doing business in Arkansas is required to file a copy of its charter or
articles of incorporation or an authenticated copy of its certificate of incorporation along
with a financial statement with the Secretary of State. Any foreign corporation who fails
to comply with these requirements is subject to a fine of at least US $1,000 and all its contracts
made in Arkansas will be unenforceable in Arkansas courts.
Taxation
Corporate Tax
Corporate Charter Fee
All corporations engaging in business in Arkansas must pay fees on filing original articles
of incorporation. Foreign corporations pay an entrance fee. The tax is based on authorized
capital stock:
• Capital stockwith par value payUS $50 for stock value fromUS $1 toUS $100,000; and
• Capital stock without par value pay US $50 for one share to 2,000 shares.
Arkansas
Introduction
Form of Business Enterprise
Registration Requirements
Taxation
Alien Ownership of Real Property
Incentives and Subsidies
Edward L Wright Little Rock, Arkansas, United States
