How do I get a business license?

Arkansas Secretary of State (entity formation) / Arkansas Department of Finance and Administration (sales tax permit) / City/County for local licenses

Step by Step

How to do it

Determine your business structure: sole proprietor, LLC, corporation, partnership
Register your business entity with the Arkansas Secretary of State (for LLCs and corporations) at sos.arkansas.gov/corps - file online or by mail
Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
Obtain an Arkansas Sales Tax Permit from the Arkansas Department of Finance and Administration (DFA) at dfa.arkansas.gov if you sell taxable goods or services - free to register; required to collect and remit Arkansas sales tax
Check with your city or county for local business licenses - most Arkansas cities require a local business license; county requirements vary; unincorporated areas may not require a local license
Check for industry-specific licenses: contractors, health professionals, real estate agents, cosmetologists, and many others require state professional licenses through the appropriate Arkansas licensing board
Renew entity registration annually with the Secretary of State; renew local business license per your city's schedule

Details

What you need to know

Required Docs

Business name and type of business activity
Business address
Entity formation documents if LLC or corporation
EIN or Social Security number
Industry-specific certifications if applicable

Fee

LLC formation: $45-$50; corporation: $50; sales tax permit: free; local business license fees vary by city (typically $25-$150+); annual franchise tax report required for entities RENEWAL: Entity annual report due by May 1 each year; local license renewal per city schedule ONLINE OPTION: Yes - sos.arkansas.gov/corps (entity formation and annual reports); dfa.arkansas.gov (sales tax permit registration) WHERE TO GO: Arkansas Secretary of State (entity formation); Arkansas DFA (sales tax permit); City Clerk or Finance Department (local business license)

Online Option

Yes - sos.arkansas.gov/corps (entity formation and annual reports); dfa.arkansas.gov (sales tax permit registration)

Where to Go

Arkansas Secretary of State (entity formation); Arkansas DFA (sales tax permit); City Clerk or Finance Department (local business license)

County-specific variations apply

Arkansas does not have a uniform statewide county-level business license. Most incorporated cities require a local business license; unincorporated county areas generally do not. Requirements vary significantly between Little Rock, Fayetteville, Fort Smith, Jonesboro, and smaller municipalities. Verify local requirements with your specific city or county before operating.

Arkansas Notes

Important state-specific details

Arkansas requires business entities (LLCs, corporations) to file an annual franchise tax report by May 1 with the Secretary of State - failure results in suspension of the entity.
Arkansas has a state sales tax of 6.5% - additional local (city and county) sales taxes apply in most jurisdictions; total rate commonly 8-10%.
Arkansas Contractor's Licensing Board: contractors performing work over $2,000 must be licensed - contact ACLB at aclb.arkansas.gov.
Sole proprietors operating under a fictitious name (DBA) must file with the County Clerk in the county where the business operates.
Arkansas has a state income tax; businesses pay Arkansas corporate income tax or pass-through income to individual returns.

Official Source

State office contact

State Office

Arkansas Secretary of State, Business Services - sos.arkansas.gov/corps | (501) 682-3409; Arkansas DFA (sales tax) - dfa.arkansas.gov | (501) 682-1895