Ark. Code R. 26-51-409 - 2 (1997) - Corporations That Must File as an S Corporation

Corporations incorporated in Arkansas, or registered to conduct business within Arkansas or having income from Arkansas *sources, must file an income tax return with the State of Arkansas. Such corporations must file an S Corporation income tax return (AR1100S) with the State of Arkansas if:

(a) the corporation elected, by filing Form AR1103, to be taxed as an S Corporation within seventy-five (75) days of incorporation;

b) the election was accepted by the State of Arkansas; and

c) the election remains in effect.

• Having income from Arkansas "sources" means income derived from property located within Arkansas or from business activity carried on within Arkansas.