Obtaining the required licenses or permits is one of the big steps to opening a new business. It can take quite a bit of time and resources.
You may find yourself searching “How do I get a business permit and/or license in Arkansas?” without finding answers. Ensuring you know what licenses and permits you need for your particular business, as well as how to get them, is very important. Let’s take a look at the primary permit and license requirements for an Arkansas small business.
How To Get the Correct Business Permits and Licenses in Arkansas
Starting a business will almost always require a license, otherwise known as a “privilege license.” However, determining exactly what the other requirements are for your particular business will take a little work.
The rules differ depending on your location and specific business. For instance, restaurants in Arkansas will have to be approved by the Arkansas Department of Health, in addition to any other requirements they may have to meet for licensure.
Keep in mind that you’ll need to make sure you get the correct permits or licensing from the correct place. There are agencies and boards that oversee particular areas of business, so you will need to verify that you have received your approval from them, depending on what type of business you wish to start. The SBA has a complete list of these agencies, which includes the names and descriptions of the different areas of business they review.
While it is not possible to list all of the potential requirements for all businesses in one place, we can take a look at some of the most important ones. Let’s examine what will primarily be required in order for you to license your business at the local and state levels.
Local Requirements
The primary permit and license requirements at the local government level are:
- Zoning, Signage, and Building Permits
- Business License
- Business Name
The very first step toward complete business licensure at the local level is making sure your facility meets the required zoning criteria; that is, you’ll need to ensure that the type of business you want to open aligns with the zoning regulations for your location. This should only have to be verified one time, but if your business does not align with the set zoning regulations, you will need to apply for a rezoning permit.
Next, you should apply for a general business license. This simply allows you to legally operate your business within its physical city. Note that the price of application for a business license can vary greatly (depending on the type of business you want to run), and the license itself may incur other costs or fees as well.
You will want to register your business name if operating as a sole proprietor. After all, your business name is most often the first thing potential customers will see. Your local county clerk’s office will run a search for the business name to make sure it is not already in use, and you can also call on them if you need a name change in the future.
Keep in mind organizing as an LLC does not require a visit to the county clerk’s office for a business name. Only sole proprietors need to do this step.
State Requirements
Now, let’s discuss Arkansas small business permit and license requirements at the state level. All retail businesses and some service businesses should have a sales and use tax permit.
Since there are so many state requirements—too many to cover in-depth in this article—we will only focus on special permits and licenses.
Certain businesses require a special permit depending on the goods and services provided by the business. For instance, a permit is required to sell alcohol. This permit is granted by the Alcoholic Beverage Control Division (ABC) after you attend an educational seminar and pay fees. A permit to sell cigarettes, tobacco, amusement, and vending machines can be obtained from the Miscellaneous Tax Section of the Arkansas Department of Finance and Administration.
Contractor licenses, occupational licenses, and child care licenses are three types of special licenses that are required in the state. Contractor licenses come from the Arkansas Contractors Licensing Board. Occupational licenses come from the state Department of Workforce Services. The licenses for a child care business are attained through the state Department of Human Services.
Permits and Licenses on the Federal Level
Make sure that the business or job function you perform is properly licensed by the appropriate regulatory agency.
All businesses activities that are controlled by a federal agency are going to require a federal license or permit. A few examples of activities that are regulated by a federal agency include:
- Agriculture: Any importing or transporting of animals, plants, or biotechnology across a state line is regulated by the U.S. Department of Agriculture.
- Alcohol: Manufacturing, importing, or selling alcohol at a retail location is monitored by the Alcohol and Tobacco Tax and Trade Bureau, in addition to the ABC.
- Mining and Drilling: The Bureau of Safety and Environmental Enforcement controls all drilling for oil and natural gas.
- Radio/Television Broadcasting: If any information is broadcast by your business through radio or television, the Federal Communications Commission will be the issuing agency for a license.
- Transportation and Logistics: The U.S. Department of Transportation regulates any business that uses over-sized or overweight vehicles.
ASBTDC Can Help
At the Arkansas Small Business and Technology Development Center, we can guide you in regard to each of the areas of licensure requirement.
First, see our e-book on license, permit and tax requirements.
The ASBTDC is the number one small business resource in Arkansas. We offer everything from one-on-one consulting to market research, all at no cost to you.
If you would like to learn more about our services, or are interested in finding out more about Arkansas small business permit and license requirements, call 800-862-2040 or sign up online today!
