Arkansas Business License: Who Needs One & How to Apply (2025)

What Is a Business License in Arkansas?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately. 

So, if there isn’t a “general business license” in Arkansas, what exactly is there?

Well, Arkansas — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do. 

For example:

• A restaurant in Little Rock will need a Food Service Establishment Permit from the Arkansas Department of Health.
• A construction contractor in Fayetteville will need an Arkansas Contractors License from the Arkansas Contractors Licensing Board.
• An online retail store in Fort Smith will need a Sales and Use Tax Permit from the Arkansas Department of Finance and Administration.

Do I Need an Arkansas Business License? 

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Arkansas Business Licensing at a Glance

Jurisdiction	Business Licenses	Who Needs It & Where to Apply
Local	Health Permits, Zoning Permits, Occupancy Certificates, Industry-Specific Permits, etc.	Varies by location Contact your local municipality to determine local requirements.
State	Sales and Use Tax Permit	Businesses selling taxable goods or services. Apply via Arkansas Department of Finance and Administration.
	Professional Licenses	Required for regulated professions (e.g., contractors, engineers, cosmetologists, etc.) Apply via the Arkansas Department of Labor and Licensing.
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., food establishments, liquor, childcare, environmental permits). Apply through relevant Arkansas agencies.
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney. 

How to Get a Business License in Arkansas

The process of obtaining a business license in Arkansas will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and corporate finance

We generally recommend that most small business owners form an LLC. An LLC provides liability protection, is affordable, and offers flexibility in how it can be taxed and managed.

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in Arkansas

This step will depend on the business license in question.

Arkansas Local Business Licenses

Many Arkansas cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• City Business License: Most Arkansas cities require a general business license (also called a “privilege license” or “business tax certificate”) for all businesses operating within city limits. Each city has its own requirements, fees, and renewal periods (e.g., if your business is based in Little Rock, you would apply through the City of Little Rock Business License Portal).
• Industry Permits: This includes health permits required for restaurants, food trucks, and businesses handling food products. In Arkansas, food service establishment permits are issued at the state level but administered through local county health units (e.g., if your business is based in Fayetteville, you would contact the Washington County Health Unit for food permit administration).
• Zoning Permits: You may need this to ensure that your business’s location is zoned appropriately and is compliant with local laws (e.g., if you were based in Rogers, you would need to complete a Zoning Review (Use Permit) through the City of Rogers Community Development office).
• Sign Permits: These can be required before installing business signage (e.g., if you were based in Fort Smith, you would check with the City of Fort Smith Planning Department for sign permit requirements).
• Certificate of Occupancy: Required for most businesses before they can legally occupy a building or space. This verifies that the structure meets building codes and is safe for the intended use (e.g., if your business is in Rogers, you would need to schedule a Certificate of Occupancy inspection through the City of Rogers after completing zoning reviews and paying the $25 inspection fee).
• Home-Based Business Permits: Required for businesses operating out of a residence. Many Arkansas cities have specific requirements for home occupation permits (e.g., if your home-based business is in Fayetteville and within city limits, you would need a business license and must comply with home occupation regulations through the City of Fayetteville).

To find your local county or city’s official contact information and licensing requirements, you can visit the Arkansas Municipal League.

Arkansas State Business Licenses

Below we’ve included the most common business licenses that are required on a state level. 

Arkansas Seller’s Permit 

The business tax registration, sometimes called a seller’s permit, is obtained online through the Arkansas Taxpayer Access Point (ATAP) website.

Apply Online With Arkansas ATAP

Apply Online

Fee: $50

Arkansas Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• Arkansas Contractors Licensing Board: Licenses general contractors, electrical contractors, plumbing contractors, HVAC contractors, and residential contractors. Required for commercial projects over $50,000 or residential projects over $2,000.
• Arkansas Real Estate Commission: Oversees licensing for real estate agents, brokers, and firms involved in buying, selling, or managing real property in Arkansas.
• Arkansas State Medical Board: Licenses physicians, physician assistants, and other medical practitioners. Handles medical license verification and disciplinary actions.
• Arkansas State Board of Licensure for Professional Engineers and Professional Surveyors: Licenses professional engineers, land surveyors, and engineering firms operating in Arkansas.
• Arkansas Department of Health – Cosmetology Section: Licenses cosmetologists, barbers, nail technicians, massage therapists, and related beauty/wellness professionals.
• Arkansas Appraiser Licensing and Certification Board: Licenses and certifies real estate appraisers and registers Appraisal Management Companies operating in Arkansas.
• Arkansas State Board of Public Accountancy: Licenses Certified Public Accountants (CPAs) and regulates accounting firms practicing in Arkansas.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some Arkansas businesses require additional licenses based on the specific industry they operate in.

Here are some common examples of industry-specific state licenses in Arkansas:

• Alcoholic Beverage License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the Arkansas Department of Finance and Administration – Alcoholic Beverage Control Division.
• Used Motor Vehicle Dealer License: Required for individuals or businesses that sell five or more used motor vehicles in any calendar year. Regulated by the Arkansas State Police.
• Child Care License: Required for facilities that care for six or more children from more than one family, or family homes caring for 6-16 children. Regulated by the Arkansas Division of Elementary and Secondary Education – Office of Early Childhood.
• Food Service Establishment Permit: Required for restaurants, mobile food units, catering services, and other businesses preparing and serving food. Regulated by the Arkansas Department of Health.
• Poultry Feeding Operations Registration: Required for operations housing 2,500 or more birds. Regulated by the Arkansas Department of Agriculture. 

Arkansas Environmental Permits

If your business’s industry will mean that it could negatively impact the environment, there is a good chance you’ll need some sort of license or permit from the Arkansas Department of Energy and Environment’s Division of Environmental Quality.

Examples of industries regulated here include:

• Underground Storage Tank Registration
• Aboveground Storage Tank Registration
• Air Quality Permits (minor source and Title V operating permits)
• NPDES Water Discharge Permits
• Construction Stormwater Permits
• Industrial Stormwater Permits
• Hazardous Waste Generator Permits
• Solid Waste Management Permits
• No-Discharge Land Application Permits
• Wetlands and Stream Alteration Permits
• Public Water System Permits
• Septic System and Subsurface Disposal Permits
• Animal Waste Management Systems
• Petroleum Storage and Handling
• Chemical Manufacturing and Processing
• Food Processing and Manufacturing
• Poultry and Livestock Operations
• Mining and Mineral Extraction

Federal Business Licenses for Arkansas LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration. 
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation

Arkansas Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years. 

This is not required for a Sales and Use Tax Permit unless you change the structure of your business (e.g., start as an LLC and then convert into a C Corp, etc). Arkansas sales tax permits remain active until you close your business account and do not require periodic renewal.

Several of the local permits will also need to be renewed annually; this includes health department permits, signage permits, and fire department permits, which generally all need to be renewed annually.

Having said that, this will depend on both your location and the license in question.

Arkansas Business License FAQs

Quick Resources

• Arkansas Department of Finance and Administration
• Arkansas Department of Labor and Licensing
• Arkansas Department of Energy and Environment
• Arkansas Municipal League
• Arkansas Small Business and Technology Development Center