Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
Regulation 1997-4 - Comprehensive Individual Income Tax Regulations
Rule 26-51-102 - DEFINITIONS
Rule 1.26-51-102(5) - Corporate Characteristics

Whether an organization (including an unincorporated entity like a partnership, LLC, or trust) will be taxed as a corporation depends on how many of these corporate characteristics it has:

* associates,

* an objective to carry on a business and divide the gain from it,

* continuity of life,

* centralized management,

* liability limited to the organization's assets, and

* free transferability of interests. IRC Reg. 301.7701-2(a)(1)

If an entity has more corporate than noncorporate characteristics, it is treated as a corporation (association taxable as a corporation). IRC Reg. 301.7701-2(a)(3)