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Arkansas State Law

What is State Law? State laws are statutes, regulations, and requirements enacted by the Arkansas state legislature and government agencies. These cover business formation, taxation, employment requirements, professional licensing, and financing programs that apply statewide. Always verify current information directly with the issuing agency before making business decisions.

AR Business Registration

Licensing

Arkansas requires businesses to register with the Secretary of State before conducting business in the state. Sole proprietors and general partnerships using a trade name must file a DBA with…

Source: AR Secretary of State

AR Unemployment Insurance Employer Registration

Employment

Arkansas employers who pay $1,500 or more in wages in any quarter or employ one or more workers in 20 weeks of a year must register with the Division of…

Source: AR Division of Workforce Services

AR LLC Formation Requirements

Formation

Arkansas LLCs are formed by filing Articles of Organization with the Secretary of State and paying a $45 fee online. All LLCs must designate a registered agent with an Arkansas…

Source: AR Secretary of State

AR Corporation Formation

Formation

Arkansas corporations are formed by filing Articles of Incorporation with the Secretary of State and paying a minimum $50 fee based on authorized shares. Corporations must designate a registered agent…

Source: AR Secretary of State

AR Annual Franchise Tax Report

Formation

Arkansas LLCs and corporations must file an Annual Franchise Tax Report with the Secretary of State by May 1 each year. The minimum franchise tax is $150 for LLCs and…

Source: AR Secretary of State

AR Corporate Income Tax

Taxes

Arkansas imposes a flat 4.3% corporate income tax on net income attributable to Arkansas, reduced from higher graduated rates under recent tax reform. C corporations file Form AR1100CT with the…

Source: AR Department of Finance and Administration

AR Sales and Use Tax

Taxes

Arkansas imposes a state sales tax of 6.5% on retail sales of tangible personal property and certain services, with city and county taxes bringing combined rates up to 11.5% in…

Source: AR Department of Finance and Administration

AR Minimum Wage

Employment

Arkansas minimum wage is $11.00 per hour as of January 1, 2024, established by a voter-approved constitutional amendment. Tipped employees may be paid $2.63 per hour provided tips bring total…

Source: AR Department of Labor and Licensing

AR Workers Compensation Insurance

Employment

Arkansas employers with three or more employees must carry workers compensation insurance. Construction industry employers must provide coverage with one or more employees. Coverage may be obtained through a private…

Source: AR Workers Compensation Commission

AR Professional Licensing

Licensing

Arkansas professional licensing is administered through the Department of Labor and Licensing and multiple state boards covering engineers, architects, real estate agents, healthcare providers, accountants, and contractors. The Arkansas.gov business…

Source: AR Department of Labor and Licensing

AR Contractor Licensing

Licensing

Arkansas requires contractors performing work valued at $2,000 or more to be licensed by the Contractors Licensing Board. Residential builders and commercial contractors have separate license classifications. Electrical, plumbing, and…

Source: AR Contractors Licensing Board

AR Quick Action Closing Fund

Financing

The Arkansas Quick Action Closing Fund provides discretionary grants to businesses locating or expanding significant operations in Arkansas. Awards are negotiated based on projected job creation and capital investment and…

Source: AR Economic Development Commission

AR Small Business and Entrepreneurship Council Loan

Financing

The Arkansas Small Business and Entrepreneurship Council supports small business lending through partnerships with CDFIs and community lenders. Programs target businesses in underserved communities and rural areas that cannot fully…

Source: AR Economic Development Commission

AR Home-Based Business Rules

Home Business

Home-based businesses in Arkansas are regulated by local city and county zoning ordinances. Most jurisdictions permit home occupations as an accessory residential use subject to restrictions on signage, customer visits,…

Source: AR Economic Development Commission

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