An Arkansas sales tax license costs $50 for initial registration and never needs renewal. Other state and local business licenses cost $50-$1,000 and may require yearly fees. To verify a license, use the Arkansas business license lookup.
Most cities require businesses be licensed to operate. Licensing rules depend on location and business activity. Obtaining an Arkansas business license involves:
- Identifying the licenses needed based on business activity and location. Food businesses require more licenses than other businesses.
- Applying with the correct agency. The application requires basic information like business name, EIN, address and contact information.
- Paying fees. Costs range from $20-$500 plus renewal fees.
- Meeting local requirements like permits and zoning licenses.
- Obtaining specific licenses like workers compensation insurance if having 3+ employees.
Penalties for lacking proper licenses are fines or orders to close the business.
Cost of Business Licensing
The cost of getting a business license in Arkansas varies. For example, the Arkansas sales tax license has a one-time fee of $50 with no renewal requirements. The cost for other licenses may range from $50 to over $1,000 depending on the type of business and the amount and kind of inventory.
While there is no general business license requirement in Arkansas, many businesses will need specific permits and licenses, with filing fees depending on the license sought. Filing fees for registering a business also vary depending on the business structure, ranging from $45 to $50 for formation documents and an additional $25 for name reservation.
Starting a Small Business in Arkansas
The process to start a small business in Arkansas includes:
- Picking an idea that fills a niche, aligns with your values and interests, and deciding on products or services.
- Drafting a detailed business plan to outline long-term goals and strategies for success.
- Conducting market research to refine the business plan.
- Registering the business with an appropriate structure (sole proprietorship, partnership, LLC) by filing paperwork with the Secretary of State.
- Complying with state and local tax and licensing requirements.
- Opening business bank accounts and securing financing.
- Managing legal obligations such as permits, licenses, insurance.
- Hiring employees as needed and handling payroll and employment taxes.
- Creating financial projections for cash flow, income, and expenses.
- Finalizing operations and marketing strategies before launching.
Considering Arkansas’ lower business costs and supportive resources such as the Small Business and Development Center, Economic Development Commission, and Secretary of State’s Office, starting a business in the state can be a viable option for entrepreneurs.