How to Get an Arkansas Business License

Do you need a business license in Arkansas?

You may need to obtain a business license in the city or town where your business has a physical location or business address. Arkansas doesn’t have a general business license at the state level.

Any additional licenses or permits you’ll need depends on your type of business and the requirements for certain regulated industries. 

Local (city and county)

You might need to obtain a general business license in any city where your business has a physical location. Cities may require a license for businesses that operate within city limits, even if the business has a physical location in a different city.

Local licensing requirements vary, and it’s best to check the official city government website and the business license application. Some cities, like Little Rock and North Little Rock, require you to confirm that your business complies with local zoning ordinances before you apply for a business license. There may also be permits you need to obtain at the county level, such as for food handling or operating in multiple cities.

Arkansas state

If you plan to sell goods or services that are subject to state tax, you’ll need a sales tax permit (commonly known as a seller’s permit) issued by the Arkansas Department of Finance and Administration. Registering for this permit allows a business owner to file taxes for the state. Most businesses that sell goods or services need this permit unless the goods are exempt from Arkansas sales tax, such as farming equipment.

Other permits required at the state level depend on your type of business. Any establishment that sells food—restaurants, food trucks, grocery stores, hotels, etc.—needs a Food Service Permit from the Arkansas Department of Health, and an additional Alcohol Beverage Control permit is required to sell alcoholic beverages. If you practice any professional service, like contracting, real estate, physical therapy, or cosmetology, you’ll likely need a professional license or certification from the state board for your specific industry.

Federal

Some activities are regulated at the federal level and require a permit from the appropriate U.S. government agency. Examples of federally regulated business activities include:

• Agriculture. Importing or transporting agricultural products and animals across state lines.
• Alcohol. Manufacturing, importing, or selling alcoholic beverages.
• Fish and wildlife. Wildlife-related activities, including the import or export of wildlife or wildlife-derivative products.
• Radio and television broadcasting. Information broadcasting via radio, TV, satellite, cable, or wire.

How to get a business license in Arkansas in 6 steps

Since business licenses are issued at the city level, be sure to check your city government website for what you need before applying. What’s required in one city might not be required in another. With that in mind, there are a few things you’ll generally want to take care of before you can obtain a business license. 

Step 1: Register your business

If you haven’t already, register your business entity with the Arkansas Secretary of State. This is where you’ll check if your business name is available by conducting a name search, and then decide on your business entity structure (LLC, corporation, partnership, sole proprietorship, etc.). Ensure you complete all other necessary documents, such as the articles of incorporation or certificate of organization.

You can either file online or fill out a paper form, which is available on the Arkansas Secretary of State website. State processing times can take anywhere from three to 10 business days. LegalZoom can file the paperwork for you to help you get a head start.

Step 2: Get an EIN

An employer identification number, sometimes called a federal tax ID, is like a Social Security number for your business. An EIN helps organize business taxes separately from personal taxes, and you’ll need one if you plan to hire employees. An EIN may also help prevent identity theft and can aid in building credit for your business. You can apply for one on the IRS website, or LegalZoom can set up an EIN for you.

Step 3: Apply for a sales tax permit, if needed

If you’re a retailer who needs a sales tax permit, cities may require you to have this permit before applying for a business license. You can apply for the permit on the Arkansas Department of Finance and Administration website by registering a tax account, and processing can take eight to 10 business days. You’ll need:

• $50 filing fee
• A signed copy of the lease agreement for your business property, if leasing
• A signed copy of the bill of sale, if you purchased your inventory from a previous business

You likely don’t need a sales tax permit if you’re not selling goods or services, or if what you’re selling is exempt from Arkansas sales tax (in which case you can apply for an exemption).

Step 4: Check your zoning regulations

Some cities require you to confirm that your business location is compliant with local zoning regulations before you apply for a business license. In some places, you would confirm this with a zoning certificate. This requirement is still relevant if you’re running a home-based business, in which case you would satisfy the requirement by getting a home-based business license or a home occupation accessory permit in your city.  

Step 5: Apply for a business license

Once your business is registered and compliant with zoning regulations, you can apply for a business license (sometimes known as a privilege license) through the city government. If your business is operating in multiple cities, you’ll need to obtain a business license in each one. 

The application process can vary by city, as well as the fees. Check your city’s official government website for an online business license application or additional information on how to get started.

Step 6: Get local, state, and federal permits

Having a business license is separate from having a permit to conduct certain business activities. Some activities, like selling alcohol, require a permit at the local, state, and federal levels. Activities like food handling require a state, and sometimes a county permit, and interstate transportation requires a federal permit. 

To save time researching, it’s a good idea to consult an attorney with expertise in business formation.

After getting your Arkansas business license

Once you have your business license, be sure to follow any local requirements for displaying it. (The city of Huntsville, for example, requires that you display your business license in a visible location.) For some professional licenses, like for physical therapy or cosmetology, Arkansas state requires the license and renewal certification to be conspicuously and publicly displayed in the principal office or the place where the service is practiced.

Your business license likely needs to be renewed annually, and deadlines and renewal fees vary by city. You must keep your license up to date to legally operate your business, or you could risk penalties, fees, or getting your license revoked. 

Getting an Arkansas business license the easy way

Figuring out all the licenses and permits you need and where to apply for them can be a difficult and stressful process. You can save time and effort with an online business license report from LegalZoom. This report includes a customized summary of Arkansas license, permit, and registration requirements for your business, plus ongoing notifications about renewal deadlines and any state or local government changes.

FAQs

What should I do before getting a business license? 

Register your business entity with the Arkansas Secretary of State. This involves conducting a name search to check that your business name is available—make sure that the name is unique and complies with Arkansas naming guidelines.

You should also check your local government’s website for additional requirements before you apply for a business license, such as zoning certification or a sales tax permit.

How much is a business license in Arkansas?

The filing fee depends on the city issuing the license. In Siloam Springs and Fort Smith, for example, you don't need to pay a filing fee for your business license. In some cities, the fee depends on the number of employees or what time of year you file.

Also note that there are fees associated with renewing your license, which you must do every year to stay in good standing. In Fort Smith, while there’s no initial fee, there’s a renewal fee of $150 for food trucks and $100 for all other businesses. Renewal fees can vary based on the size of your business, your type of business, whether it’s home-based or commercial, or other factors.

How do I get a business license in Little Rock? 

Before you apply for a business license, the city of Little Rock requires that you register your business with the state government and, if you’re leasing a commercial location, get zoning approval. You can submit the business license application form on the Little Rock Treasury Management website or in person at the Little Rock Planning and Development Building at 723 W. Markham St.

If you’re running a business from your home, you won’t need zoning approval. Instead, you would apply for a home-based business license, which includes a home occupation accessory permit. You can apply for this with the same form used for commercial business licenses and fill out the home occupation permit section.

How long does it take to get a business license in Arkansas?

Processing times for a business license application vary per city, and it can take additional time beforehand to register your business, get zoning approval, and get a sales tax permit if required. Make sure you carefully research your local licensing requirements or contact the city government office before you start applying to make the process go more smoothly.