50 State Series: How to move your LLC or corporation out of Arkansas and keep your EIN

Attorney and CPA Chad D. Cummings breaks down Arkansas’s tax situation in this presentation. The state has made meaningful rate cuts, lowering its top individual income tax to 3.9 percent and corporate rate to 4.3 percent. Yet Arkansas still carries one of the highest combined state and local sales tax rates in the country, a capital stock tax, an inventory tax, and a throwback rule that taxes income earned elsewhere. These structural issues continue to place unnecessary costs on businesses. In contrast, Florida and Texas offer no state personal income tax and significantly lighter overall burdens. This presentation shows how redomestication allows Arkansas business owners to move their company’s legal domicile to Florida or Texas without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. If you own a business in Arkansas, the rate reductions are helpful, but they do not solve the full problem. Learn more: https://www.cummings.law/redomestication/