How to Get a Business License in Arkansas?

Arkansas is one of the few states with a steadily growing and evolving startup ecosystem. Venture capital deals, early-stage funding, and other financial initiatives are also showing considerable promise. This has opened the doors for entrepreneurs to establish and operate their startups in this state. This also means that you will need to obtain an Arkansas business license to operate legally in this state. There may be different types of licenses and permits applicable to your company or a specific business. Hence, we have created this guide to provide you with information on how to obtain Arkansas business licenses and permits, the various types of licenses in the state, and the issuing authorities.

Business License in Arkansas

Most businesses in the USA require some form of licenses and permits to conduct their operations. Similarly, if you register a company in Arkansas, then you will need to apply for permits as specified by this state. You will need to conduct an Arkansas business license search to identify the type of licenses your company may require. It is essential to understand that the objective of business licenses is multifold.

When you obtain an Arkansas business license, it will ensure legal compliance with all state and business laws, demonstrate higher credibility in the market, and also facilitate government oversight, including regulatory enforcement. Business licenses are also essential for building long-term trust with customers and may help you access potential tax benefits in Arkansas.

Who needs an Arkansas business license?

The state of Arkansas has an ideal business climate and business regulations. This makes the state attractive to new businesses and to entrepreneurs who want to relocate their company to a more competitive location. One of the primary requirements for operating in this state is an Arkansas business license. Yes, almost all forms of entity structures, ranging from sole proprietorships to limited liability companies, partnerships, and corporations, require some form of licenses or permits to operate legally.

Some states, including Arkansas, require home-based businesses to obtain an Arkansas business license and permits. These licenses can be issued at a state level or at the local county or city level. Hence, such businesses need to consider home-based business regulations, including ensuring compliance with local zoning laws.

What business license is required in Arkansas?

If you have decided to register your company in the “Land of Opportunity,” then obtaining an Arkansas business license becomes necessary. In this state, there is no requirement to obtain a generic business license, especially at the state level. It is also not essential that every new company requires licenses and permits, but most businesses will. However, there is a type of statewide permit or business license that may apply to your company. This is known as the Arkansas sales tax permit. It is also known as a seller’s permit, and you will be required to register your company for Arkansas sales and use tax.

The licensing requirements may vary according to the type of business, jurisdiction (state and local), and the nature of your business activities. Some businesses may even require multiple Arkansas business licenses and permits. It is recommended to consider state regulations and industry-specific information to identify whether your company needs a permit. Let’s examine the various categories of licenses in this state in detail.

Professional and Occupational Licenses for Businesses and Individuals in Arkansas

You are planning to register your company or startup in the state of Arkansas. The most essential part of any business is the activity that the company specializes in, which could be selling a product or promoting a service. This is where professional and occupational licensing comes into the picture. Once you determine which profession or occupation is connected to your business activity, you can apply for the necessary license after conducting an Arkansas business license search.

Professional and occupational licensing may look similar, but they are pretty different. Occupational licensing is considered a permit issued by the government, allowing an individual to work in a specific field. In the state of Arkansas, nearly one out of every five workers is required to obtain an Arkansas business license or occupational license before legally pursuing their job.

For Example, If you start an old age center or a veterans home that requires certified nurse aides then such aides need to obtain the relevant occupational license. In this case, it will be a Certified Nurse Aide (CNA) license.

Similarly, a professional license is considered a credential issued at the state level by a government agency or authority. This certification grants an individual the legal right to practice their chosen profession. This is most commonly required in various sectors, including education, healthcare, finance, and legal services.

For Example, If your business requires you to hire a Certified Public Accountant (CPA) then such an individual should have proper certification otherwise, your company will not be able to obtain other necessary Arkansas business licenses and permits.

Several professions and occupations in Arkansas require specific licenses and certifications. The licensing authority may vary depending on the profession or occupation. The Arkansas Department of Labor and Licensing has provided a detailed list of professions that require licensing. A professional Arkansas business license will be issued by the authority under which a specific profession falls.

For Example, the State Board of Licensure for Professional Engineers and Professional Surveyors is responsible for issuing licenses for Engineer Intern (EI), Professional Engineer (PE), Surveyor Intern (SI), and Professional Surveyor (PS).

Other Arkansas Business Licenses

Whether you are establishing an LLC, a corporation, or a sole proprietorship, your company may also require additional forms of Arkansas business licenses and permits. If you want to know the exact permit or license requirements for your company, then an Arkansas business license search is highly recommended. Let’s take a brief look at the other licenses and permits that you may need to obtain.

Arkansas Sales Tax Permit

Every state in the USA where sales tax is applicable for businesses will require registration for a sales tax permit. A sales tax permit is a type of Arkansas business license document that provides authorization to a company to collect sales tax from its customers. It is known by various names, including sales tax license, retail license, seller’s permit, sales and use tax permit, and vendor’s license.

The Arkansas Department of Finance and Administration oversees the issuance of this tax permit, and you will need to register on their website. You will need to apply for this license only if your company has a sales tax nexus in this state. You may also need to obtain an Arkansas business license if you are selling property or any services that are subject to sales tax in this state under the Gross Receipts Tax law.

Local Zoning and Building Permits

One of the essential forms of Arkansas business licenses is the local license. The requirements and regulations for this type of license will vary depending on the city or county where your company is based. A critical aspect of these licenses is local zoning and building permits. Generally speaking, the need for this type of Arkansas business license and permits arises if a company plans new construction or makes additions, alterations, and renovations to an existing commercial space. This also takes into account any structural modifications that may be made.

Although the rules and regulations will vary from one county or city to another, typically, they will involve a checklist of processes. The processes may include the following –

Submitting a site plan
Submitting construction plans, if any
Filing a permit application along with a fee
Inspections of the premises
Obtaining a Certificate of Occupancy, depending on the type of business
Compliance with the Arkansas Building Code
Permits from the fire and police departments

Let’s examine a small example to illustrate the above.

Example: Your company office is situated in the City of Fayetteville. You want to apply for “Building Construction Permits”. The process will involve visiting the Citizen Self-Service (CSS) portal to download information relevant to Arkansas business licenses and permits that may apply to your activity. You will require the following:

Apply for a temporary closure

Request an Inspection

Apply for a Development Grading Permit

Apply for a Miscellaneous Grading Permit

Apply for Miscellaneous ROW Permit

Apply for a Temporary Street Closure

In addition to the above, you may also need to obtain a local Arkansas business licensed for specific business activities. If you were to operate a restaurant or a private club in the City of Conway, you would need to contact the city clerk’s office and apply for the relevant licenses and permits.

Alternatively, you can opt for the IncParadise “Business License Research Report” service. This research report contains a list of filing instructions, supporting document requirements, and fees for all business licenses and permits applicable in the state of Arkansas.

Need any Assistance in Obtaining Your Arkansas Business License?

If you plan to start a new company or relocate your existing business to Arkansas, obtaining an Arkansas business license is essential. The type of licenses and permits will vary according to the jurisdiction of your company, as well as the activity or industry. The application fee, laws, and requirements for an Arkansas business license vary depending on the type of license.

At IncParadise, we can guide you through the process of obtaining the necessary business licenses and permits. We also provide additional services to new and existing Arkansas businesses, like EIN Tax ID and Foreign Qualification, among others.