A sole proprietorship is a business with a single owner. In Arkansas, you can start a sole proprietorship anytime without filing documents or paying state fees. However, you’re personally liable for all business debts. You can choose to register a business name. Depending on your business, you may need licenses and permits which could take 1-2 weeks and cost $200. As a sole proprietor, you must pay income tax and may need to register with the state Revenue Department for sales tax. Keep good records and protect personal assets. Retail, personal services, and skilled trades are common sole proprietorship businesses.
Steps to Register
- Choose a business idea
- Register a name if desired
- Obtain licenses as needed
- Set up accounting
- File taxes appropriately
Consult an accountant regarding tax obligations.
Dealing with Taxes and Legalities
How do I register as a sole proprietor in Arkansas? You can start anytime without filing or fees. Depending on your business, licenses and permits may take 1-2 weeks and cost $200. You must pay income tax and may register with the Revenue Department for sales tax. Keep records and protect assets.
Can a DBA be a sole proprietorship?
A DBA is a “nickname”. Your sole proprietorship can use a DBA name. For example, the default name is the owner’s name. You can file a DBA like “Bob’s Bagels” to better market.
Assumed Name Certificate
The process for a DBA as a sole proprietorship in Arkansas is different. You will file an Assumed Name Certificate with your county clerk’s office instead of the Secretary of State.
Taxation and Liability
As a sole proprietor in Arkansas, you must pay state and federal taxes on income. Consider liability insurance to protect assets. Sole proprietorships are the simplest businesses to start in Arkansas.
Do sole proprietors need to file?
Yes, as a sole proprietor in Arkansas, you must pay state and federal taxes on income. You may also need to register with the state Revenue Department for sales tax. Keep records and protect assets.
Fictitious Names and Licenses
Fictitious names in Arkansas are optional. If you need licenses and permits, the process will take 1-2 weeks and cost around $200. If no licenses are needed and no trade name registered, you can start without paying besides capital.