A sole proprietorship has a single owner and you can start anytime without filing or fees in Arkansas. However, you’re liable for debts. You can register a business name. Depending on your business, licenses and permits may take 1-2 weeks and cost around $200. You must pay income tax and may register for sales tax. Keep financial records and consider insurance to protect assets. Retail, services, and trades are common.
Starting a Sole Proprietorship
Steps to start a sole proprietorship in Arkansas include:
- Choose an idea
- Register a name
- Obtain licenses
- Set up accounting
- File taxes
Sole proprietorships are the simplest business structure in Arkansas. Fictitious names in Arkansas are optional. If no licenses and no name, you can start without paying besides capital.
Legal and Tax Obligations
As a sole proprietor in Arkansas, you must pay state and federal taxes on income. This includes income tax and potentially sales tax. It is important to:
- Keep financial records for taxes
- File returns annually
- Consider liability insurance to protect assets
We’ve prepared a guide with data, facts, and advice to help you start and run your sole proprietorship successfully in Arkansas.