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Arkansas

A guide to help you understand the ins and outs of business in Arkansas

Overview

Arkansas is a southern state that shares borders with Texas, Oklahoma, Missouri, Tennessee, Mississippi, and Louisiana. The capital and largest city is Little Rock. Arkansas remains the 29th largest state and 33rd most populous state, with 3.13 million residents. Arkansas' Gross Domestic Product is $153,100,000,000.

The main industries in Arkansas are agriculture, forestry, food manufacturing, steel, transportation equipment, electric equipment, paper products, and chemicals. Agriculture is its most significant sector, adding tens of billions to the state economy every year. Arkansas firmly secures its spot as the top producer of rice in the US—accounting for roughly 45% of total domestic production—and remains a national leader in the production of soybeans, cotton, and poultry.

Arkansas exported $24,810,000 to Qatar, with its top trade commodities heavily led by agricultural and mechanical production. The state's leading export categories driving this growth consist of oil seeds, miscellaneous grains, industrial seeds, fruits, and plants, followed closely by commercial rice shipments, alongside nuclear reactors, boilers, and heavy machinery.

Arkansas features a graduated corporate income tax rate with a top rate of 4.3% on net corporate income exceeding $11,000. To further boost economic competitiveness, signed legislation will drop this top rate to 4.1%. Arkansas operates two designated foreign trade zones—located in Little Rock (FTZ #14) and the Memphis area (FTZ #273)—to facilitate streamlined global customs. The state also provides a robust portfolio of corporate incentive programs administered by the Arkansas Economic Development Commission, including the Advantage Arkansas income tax credit for job creation.

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