Incorporation in Arkansas

Monticello Incorporation Attorneys, AR

Find the Right Lawyer Now

Arkansas law allows a business to incorporate and be identified as its own legal entity. As a separate entity from the owners, the business is then considered to be acting on its own when it buys and sells property, assents to contracts and exercises legal rights. A business looking to incorporate in Arkansas must file with the Secretary of State in accordance with established guidelines.

Benefits of Incorporation in Arkansas

An incorporated business enjoys certain advantages, the most important being a limit of liability for the shareholders. The most shareholders can lose is the amount they invest in the business. If the business had remained a personal asset of the owners, they could run the risk of losing their personal property to pay for the company's financial liabilities in case of default. Furthermore, a business that has not incorporated puts the unnecessary burden on creditors in the Monticello area to evaluate the credit worthiness of individual owners rather than that of the business, making loans more difficult. Lastly, the ownership of a corporation is divided into an abundance of equal portions or "shares" of stock. Without this mechanism, transferring ownership of a business would be impractical.

Find a Monticello Lawyer that Specializes in Your Area of Need:

2 Business - Transactional cases posted to LegalMatch lawyers in Monticello

Incorporation Attorneys and Law Firms in the Largest AR Cities

Show Arkansas Cities

Costs of Incorporation

There are costs associated with incorporation, both short and long term. First, businesses in Arkansas might be charged a fee to incorporate. Also, a corporation is taxed as its own entity. The individual incomes of the owners are still taxed also, and this can mean the same income is taxed twice, known as double taxation. With proper planning and assistance from a local Monticello lawyer, you can avoid this disadvantage.

Find the Right Lawyer Now

Breach of Contract Lawyers in Other Arkansas Cities and Towns

Need a Business Lawyer?

No obligation - Lawyers compete for your case. Choose your issue & get started now: