Rated by Forbes and U.S. News as a top ten state for quality of life and low business costs, Arkansas is a great place to launch your business. Start your business today with our simple step-by-step guide and get on the fast track to financial and personal independence. If you get stuck along the way, connect with a business resources in your local area for help.
Steps to Starting your Arkansas Business
To Start a Business in Arkansas, follow these steps:
The first step toward business ownership is deciding what kind of business to start. Look for an idea that suits your interests, your personal goals, and your natural abilities. This will help you stay motivated when the going gets tough and will greatly improve your odds of success. Need inspiration? Here were the most popular ideas among our Arkansas visitors in 2017:
TRENDING BUSINESS IDEAS IN Arkansas
Find the Right Business Idea for You
Our free Business Ideas Tool will help you identify great businesses that match your interests and lifestyle.
Successful businesses are built through careful planning. Before committing a significant amount of money and other resources toward your business, critically analyze your idea and create a game plan. At a minimum, you should have good answers to the following questions.
Product Development
What problem does your business solve? What will set your product or service apart from the competition?
Sales & Marketing
Who are your potential customers? How will you get their attention and convert them into buyers?
People and Partnerships
What roles will you need to hire and what professional relationships will you need to form in order to succeed?
Financial Planning
How many clients or sales will you need in order to break even? How much money will it take to get there, and where will you get the funding?
Start Planning
- Our Business Planning Guide helps you analyze your business idea and gets you access to free planning tools.
- Need Help? Find organizations in your local area that can assist you with planning.
- If you’re a woman in business, find funding, tools and resources with this great new series Women in Business.
Registering your company as an Arkansas business entity, such as an LLC or a Corporation, has two major advantages:
- Increased credibility
- Protection from personal liability in the event your business is sued
For most small businesses, registering an LLC is a great option. In comparison to other business entities, LLCs are easier to set up and manage and they have favorable tax treatment. You can set up an LLC in Arkansas for as little as $50.
If you choose not to register your company as a business entity, you will be held personally responsible for the debts and liabilities of your business. In addition, unregistered business owners may need to file a Trade Name, also known as a "DBA." Find out if your business is required to file a DBA.
Secure your Domain
We recommend that you check to see if the business name you are planning is available as a web domain. Even if you aren't ready to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
With limited exceptions, most businesses require an Employer Identification Number (EIN), also known as a Tax ID Number. An EIN is used to identify a business in its federal tax filings. Without an EIN, you can't hire employees or open a business bank account.
You should also be aware of important arkansas taxes that may apply to you business:
- If you are selling a physical product, you’ll typically need to register for Arkansas Sales Tax.
- If you have employees in Arkansas, you will need to register for Unemployment Insurance Tax and Employee Withholding Tax.
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
You can protect your business with these two steps:
1. Opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Get $200 when you open a business checking account with Chase. Learn more.
2. Getting a business credit card:
- Helps you separate personal and business expenses.
- Builds your company's credit history, which can be useful to raise capital later on.
An accounting system helps you track the performance of your business and simplifies annual tax filings. Quality accounting software lets you download your bank and credit card transactions, making accounting fast and easy. Learn more about the importance of accounting and how to get started with accounting today.
Recommended: QuickBooks has all the accounting features your small business will need.
To operate your new business legally, you will need to comply with federal, state, and local government regulations. In many cases, this involves obtaining one or more business permits and/or licenses. For example, a restaurant will likely need health permits, building permits, signage permits, etc.
Business insurance helps you manage risks and focus on growing your business. The most common types of business insurance you should consider are:
We recommend that all small businesses, including home based businesses, purchase a general liability policy. Businesses selling professional advice or services, such as consulting and accounting firms, should also consider a professional liability policy. In Arkansas, businesses with three or more employees, excluding officers and LLC members, are required by law to have workers compensation insurance.
Our recommended insurance provider can set you up with an insurance policy that is right for your business
The strongest and most memorable businesses are built on a solid brand.
When developing your brand, think about what your business stands for. What are the core values that drive your business? Customers and clients are looking for companies that have a compelling brand, as much as they are shopping for high quality products and services.
Your business name is the cornerstone of good branding and a successful business. To learn more about creating the best name for your business, read our How to Name a Business guide.
A professional website is critical to the long-term success of your business, regardless of what industry you are in. A website allows potential customers to find your business online and discover the products or services you offer, and it also enhances your business’ credibility.
In addition to a website, you should also consider other avenues for promoting your business online:
- Setting up social media profiles (Facebook, Twitter, etc)
- Creating accounts on review sites (Yelp, Google Reviews, etc)
- Registering for a local Google profile
More than ever, people are looking for reviews before doing business. Yelp is an important aspect of social validation for your business, claim your page today and get $300 in Yelp advertising credit.
Startup Junkie
Here are the Principle Service Areas:
- Mentoring
- Business Planning
- Coworking
- Networking
Offers Free Service
Accepts Walks In
Description
Located in Northwest Arkansas, Startup Junkie provides one-on-one consulting on a variety of topics and hosts events, workshops, and free conferences related to innovation and entrepreneurship. Example events include networking events, pitch contests with cash prizes, startup crawls, etc. They also provide free (walk-in) coworking space and a 25 person conference room (with reservation). Nearly all of their services are provided for free, however some events have nominal fees associated with them.
CONTACT INFORMATION:
1 E Center St., Suite 270
Fayetteville, AR 72701
479-310-6261
team@startupjunkie.org
HOURS OF OPERATION:
MON - FRI: 8 am - 5 pm
Henderson State University SBTDC
Here are the Principle Service Areas:
- Mentoring
- Business Planning
- Financial
Offers Free Service
Description
The greatest strength of the SBDC is their free, confidential, 1-on-1 business mentoring for anyone who seeks it. Sometimes in order to be considered for mentoring from one of their professional business advisors, you may have to attend a class/workshop or at least present your business plan. SBDC's are located all throughout the state and you should use the SBDC closest to your location if possible, but you can often transfer to a different location if they do not fit your needs.
Arkansas State University SBTDC
Here are the Principle Service Areas:
- Mentoring
- Business Planning
- Financial
Offers Free Service
Description
The greatest strength of the SBDC is their free, confidential, 1-on-1 business mentoring for anyone who seeks it. Sometimes in order to be considered for mentoring from one of their professional business advisors, you may have to attend a class/workshop or at least present your business plan. SBDC's are located all throughout the state and you should use the SBDC closest to your location if possible, but you can often transfer to a different location if they do not fit your needs.
CONTACT INFORMATION:
319 University Loop West, 2nd Floor, Delta Center for Economic Development
State University, AR 72467
The Venture Center
Here are the Principle Service Areas:
- Mentoring
- Business Planning
- Coworking
- Networking
Accepts Walks In
Description
The Venture Center provides several programs that include networking, pitch competitions, Hackathon, etc., all at affordable rates. Their programs are split between members-only events and "community" events that are open to the public. They also offer 2 pre-accelerator programs that progressively guide an entrepreneur through the initial development stage. With an annual membership, members of the Venture Center get access to the common area and meeting space, three mentoring sessions, membership only networking events and workshops, plus discounts for other programs. While much of the programming is aimed at tech-based companies, the mentoring network and events are open to startups in any industry.
CONTACT INFORMATION:
The Venture Center , 417 Main St.
Little Rock, AR 72201
501-404-9875
founders@venturecenter.co