The Complete Guide to Arkansas Business Licenses
Arkansas does not issue a general state business license; most businesses that need a state license are regulated by a state board or commission. Sellers need a sales tax permit, and cities issue local business licenses. This guide explains each step for a new Arkansas business.
Step 1: Form the LLC
File a Certificate of Organization with the Arkansas Secretary of State for $45 online. Every LLC files a $150 annual franchise tax report by May 1. See the Arkansas LLC guide for every formation step.
Step 2: Sales tax permit
Register with the Department of Finance and Administration through the Arkansas Taxpayer Access Point (ATAP). The sales tax permit costs $50, paid electronically. The state rate is 6.5%, plus local rates; since January 1, 2026 the state rate on food is 0%.
Step 3: City business license
Little Rock requires a city business license from its Treasury Management Division. Other cities have their own licensing, zoning and occupancy rules.
Step 4: Contractor and professional licenses
The Contractors Licensing Board (Department of Labor and Licensing) requires a commercial license for work of $50,000 or more and a home improvement specialty license for single-family work over $2,000. Other professions are licensed by their boards.
Hiring staff
Employers register for unemployment insurance with the Arkansas Division of Reemployment through the Tax21 portal.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Certificate of Organization | Secretary of State | $45 online; $150 franchise tax report |
| Sales tax permit | DFA (ATAP) | $50 |
| City business license | Little Rock and others | Set locally |
| Contractor license | Contractors Licensing Board | Commercial $50,000+; home improvement $2,000+ |
Frequently Asked Questions
Does Arkansas require a business license?
Arkansas has no general state business license. Sellers need a $50 sales tax permit, cities such as Little Rock require a business license, and regulated work needs a state board license.
How much is a sales tax permit in Arkansas?
$50, paid electronically when you register through ATAP with the Department of Finance and Administration.
When does an Arkansas contractor need a license?
A commercial license for work of $50,000 or more, and a home improvement specialty license for single-family work over $2,000.
How much does it cost to form an LLC in Arkansas?
The Certificate of Organization costs $45 online, and the annual franchise tax report is $150.
What is the Arkansas sales tax rate?
The state rate is 6.5% plus local rates. Since January 1, 2026 the state rate on food is 0%.