1.26 Ark. Code R. 51-102(5)
Current through Register Vol. 49, No. 9, September, 2024
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)
1.26 Ark. Code R. 51-102(5)