If you’re planning to establish or expand your business in Arkansas, obtaining the necessary business licenses can be a key step.
Depending on your industry and exact business location, you may need to apply for a variety of different licenses at the local, state, and federal levels.
In this article, we will guide you through everything you need to know to obtain an Arkansas business license, including the factors you’ll need to consider and the costs involved.
We recommend registering your business as an LLC before getting your business license(s) in order to avoid potentially having to repeat the process later on. To get started, you can use a trusted LLC formation service.
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In Arkansas, businesses are required to obtain various licenses and permits at the local, state, and federal levels. Here’s a general breakdown:
Below, we’ve detailed common ways in which your business type can dictate the licenses you’ll be required to obtain, as well as specific examples of these:
However, this is not the only factor influencing the exact combination of licenses you’ll need — the location of your business within Arkansas plays an important role as well.
In this section, we’ve provided a succinct overview of the potential licenses and permits that your business may need due to local, state, and federal requirements:
Since the exact permits and licenses your business will need are entirely unique to your situation, you’ll have to conduct thorough research into your own local, state, and federal regulations to smoothly launch your business.
Alternatively, many entrepreneurs opt to leverage the expertise of third-party services to handle this on their behalf.
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We recommend registering your business as an LLC before getting your business license(s) in order to avoid potentially having to repeat the process later on. To get started, you can use a trusted LLC formation service.
Tailor Brands ($0 + State Filing Fees)
In order to get your business license(s) in Arkansas, you will need to complete the following steps:
Let’s take a look at each step in more detail below.
Before setting out to obtain a business license in Arkansas, it’s pivotal that you first choose an appropriate structure for your business. Sole proprietorships, general partnerships, and corporations are all common choices, however it’s often seen as the most advantageous for small businesses in Arkansas to register as a Limited Liability Company (LLC). Here are a few reasons for why:
Many small business owners opt to avoid the tricky process of forming an LLC by instead leveraging the help of third-party LLC formation services.
The second step you’ll need to complete before applying for your business license is to obtain your EIN. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses in the United States so that their financial transactions can be identified and tracked.
An EIN is often necessitated when applying for various permits and licenses as it allows local and state governments to ensure your business is operating within the confines of the law. You can obtain it in a number of ways:
Note: If you are a sole proprietor, you will be able to use your Social Security Number (SSN) instead (as long as you do not have employees).
Before getting a business license in Arkansas, you will need to secure a North American Industry Classification System (NAICS) code.
This code categorizes businesses into specific sectors and the state uses it to understand industry trends as well as set tax rules and benefits. Keep in mind that you will be required to choose a full six-digit NAICS code, but your printed business license will only show the two-digit line of business (LOB) part.
According to the Arkansas Department of Finance and Administration, businesses that want to register for a combined business tax must enter the NAICS code that best matches their primary business activity on the Combined Business Tax Registration Form.
For more information, we recommend having a look at our NAICS Code Lookup page.
After settling on the appropriate structure for your business and initiating the application for your EIN, the next step is to focus on securing the necessary licenses and permits to operate legally within your locale and industry.
Note: For more detailed information on municipalities and their respective websites, check out Arkansas’s Local Government Portal.
In Arkansas, your gross tax receipts permit doesn’t need renewal and lasts as long as you run your business and submit sales tax returns. But, if you change your business entity’s details — such as its name, location, or ownership — you might need to update the permit or obtain a new one.
For local business licenses, the renewal period can vary by city. For example, in Fayetteville, all business licenses expire on October 31 each year.
If you’re uncertain whether you need to renew any of your business’s licenses, make sure to reach out to the agency that issued your business license for clarification.
Alternatively, you can use a third-party service or a professional attorney for this process. This can be a good choice if you want to ensure that you avoid potential fines, as well as if you want to be as time-efficient as possible.
If you’re interested in finding out more about this process, see our article on How to Get a Business License.
In Arkansas, obtaining a gross receipts tax permit requires a non-refundable fee of $50. This fee is paid with the application for the permit.
However, the Arkansas business license cost varies by location. For example, in Fort Smith, the annual business license fee is generally $100. In Little Rock, businesses in the lodging sector are subject to the Advertising and Promotion 4% tax and are required to obtain a business or privilege license.
It’s important to understand that fees can vary based on the type of business and other factors. It’s always a good idea to check directly with the city’s official website or contact their office for the most accurate and up-to-date information. However, many business owners choose to use a third-party service to save time and money when handling this task.
We recommend registering your business as an LLC before getting your business license(s) in order to avoid potentially having to repeat the process later on. To get started, you can use a trusted LLC formation service.
Tailor Brands ($0 + State Filing Fees)
To obtain an Arkansas business license, you will need to research the specific requirements for your business type, such as obtaining an EIN and NAICS code. Then, you will need to check what local, state, and federal licenses you will need to obtain (if applicable) in accordance with your location and niche. See our Arkansas Business License article for more information.
It can do. This will ultimately depend on your location and industry; keep in mind that business licensing is not always specific to your state. Depending on your sector and location, you may be required to obtain additional licenses at the local (i.e., city) or federal level. See our How to Get a Business License overview for more information.
In Arkansas, most businesses need a license or permit. This includes retailers, contractors, and those in specialized professions like health or finance. Keep in mind that local city or county regulations might add additional requirements, and so it’s important to do your research based on your business address and industry in order to ensure you satisfy all requirements.
To start an Arkansas small business, you must choose a business structure, register your business name, obtain an EIN, and secure necessary local, state, and federal licenses and/or permits. If you need help, you can check out the Arkansas Small Business and Technology Development Center, which provides assistance to small businesses and entrepreneurs in the state.
For all related articles, have a look at our How to Get a Business License page.
Information on this page was researched and gathered from a multitude of sources and was most recently updated on September 9, 2024
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