Here's what you need in Arkansas
Official state business portal: AEDC Small Business and Entrepreneurship Development. The Arkansas Economic Development Commission's small business division links entrepreneurs to programs, funding and support across the state.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseWe could not find an official state page that says whether Arkansas has a general business license. Check with your city and county, and with the state board for your trade. | State of Arkansas | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
| Form an LLCCertificate of Organization (domestic LLC, Form LL-01). File a Certificate of Organization with the Business and Commercial Services Division of the Arkansas Secretary of State. You can file online or on paper. | Arkansas Secretary of State | $45 online, $50 on paper | Applyat sos.arkansas.govSource | Nov 7, 2026 |
| Business name (DBA)Fictitious Name Registration. Corporations and LLCs that use another name must register it with the Arkansas Secretary of State. Sole proprietors record their business name with the county clerk. | Arkansas Secretary of State (corporations and LLCs) or your county clerk (sole proprietors) | Fee not published.Ask the agency | Source | Nov 7, 2026 |
| Sales tax permitRegister for a sales tax permit with the Department of Finance and Administration online through the Arkansas Taxpayer Access Point (ATAP). Allow up to two weeks for processing. | Arkansas Department of Finance and Administration | $50 permit fee | Applyat atap.arkansas.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Tax21 Employer Account (unemployment insurance). As soon as your business counts as an employer, for example when you employ one or more workers on ten or more days in a year, create an unemployment tax account on the Tax21 website. | Arkansas Division of Reemployment | You pay tax on wages | Applyat tax21.reemployment.acom.arkansas.govSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in Arkansas pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual LLC Franchise Tax ReportEvery Arkansas LLC files the Annual LLC Franchise Tax Report and pays the franchise tax to the Secretary of State each year, due on or before May 1. You can file online. | Arkansas Secretary of State | $150 a year | Applyat sos.arkansas.govSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonSalon license. Salon and barber shop licenses in Arkansas come from state boards. We could not open their official pages, so the shop license and fee are not checked yet. Contact the Arkansas Department of Health before you open. | Arkansas Department of Health, Cosmetology Section | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
| Child care in your homeChild care family home license. Home child care rules come from the Arkansas Department of Human Services. We could not open its official pages, so the rules, the number of children and any fee are not checked yet. | Arkansas Department of Human Services, Division of Child Care and Early Childhood Education | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)Alcoholic beverage retail permit. Bars and restaurants get alcohol permits from the Alcoholic Beverage Control Division. Retail applications are not online, so call or email the office, and the permits you can get depend on whether your county or township is wet or dry. | Arkansas Alcoholic Beverage Control Division (Department of Finance and Administration) | Fee not published.Ask the agency | Source | Nov 7, 2026 |
| General contractorContractor license. Contractor licenses in Arkansas come from the Arkansas Contractors Licensing Board. We could not open its official pages, so who needs a license and the fee are not checked yet. | Arkansas Contractors Licensing Board | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
| Selling homemade food (cottage food)Homemade food sales. We could not open an official page about selling homemade food in Arkansas, so the rules, any permit and any sales limit are not checked yet. | Arkansas Department of Health | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
What is different in Arkansas
- At $45, the LLC filing fee is among the lowest: only 2 of 49 verified states charge less.
- Where to file a business name (DBA): Corporations and LLCs that use another name must register it with the Arkansas Secretary of State. Sole proprietors record their business name with the county clerk.
- Annual LLC Franchise Tax Report: $150 a year. Every Arkansas LLC files the Annual LLC Franchise Tax Report and pays the franchise tax to the Secretary of State each year, due on or before May 1. You can file online.
Steps to start a business in Arkansas
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Certificate of Organization (domestic LLC, Form LL-01) with the Arkansas Secretary of State ($45).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the Arkansas Secretary of State (corporations and LLCs) or your county clerk (sole proprietors).
Register for sales tax
If you sell taxable goods or services, get your permit from the Arkansas Department of Finance and Administration before your first sale.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the Arkansas Division of Reemployment.
City and county permits
Cities and countys in Arkansas can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
Questions about business licenses in Arkansas
Do I need a business license in Arkansas?
We have not yet verified this on an official page. Check with the State of Arkansas.
How much is an LLC in Arkansas?
The Arkansas Secretary of State charges $45 online, $50 on paper to file the Certificate of Organization (domestic LLC, Form LL-01). File a Certificate of Organization with the Business and Commercial Services Division of the Arkansas Secretary of State. You can file online or on paper.
How much does an LLC cost per year in Arkansas?
Annual LLC Franchise Tax Report: $150 a year. Every Arkansas LLC files the Annual LLC Franchise Tax Report and pays the franchise tax to the Secretary of State each year, due on or before May 1. You can file online.
Does an LLC need a business license in Arkansas?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in Arkansas still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in Arkansas?
Yes, if you sell taxable goods or services. Register for a sales tax permit with the Department of Finance and Administration online through the Arkansas Taxpayer Access Point (ATAP). Allow up to two weeks for processing. Official fee: $50 permit fee.
How do I get a DBA in Arkansas?
Corporations and LLCs that use another name must register it with the Arkansas Secretary of State. Sole proprietors record their business name with the county clerk.
Can I sell homemade food from home in Arkansas?
We have not yet verified this on an official page. Check with the Arkansas Department of Health.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license State of Arkansas Not yet verified Checked Nov 7, 2026
- Form an LLC Arkansas Secretary of State Checked Nov 7, 2026
- Business name (DBA) Arkansas Secretary of State (corporations and LLCs) or your county clerk (sole proprietors) Checked Nov 7, 2026
- Sales tax permit Arkansas Department of Finance and Administration Checked Nov 7, 2026
- Unemployment insurance (once you hire) Arkansas Division of Reemployment Checked Nov 7, 2026
- Official business portal Arkansas Economic Development Commission Checked Nov 7, 2026
- Hair salon, barber shop or nail salon Arkansas Department of Health, Cosmetology Section Not yet verified Checked Nov 7, 2026
- Child care in your home Arkansas Department of Human Services, Division of Child Care and Early Childhood Education Not yet verified Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) Arkansas Alcoholic Beverage Control Division (Department of Finance and Administration) Checked Nov 7, 2026
- General contractor Arkansas Contractors Licensing Board Not yet verified Checked Nov 7, 2026
- Annual LLC Franchise Tax Report Arkansas Secretary of State Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026