REQUIREMENTS FOR DOING BUSINESS IN ARKANSAS

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|  Zoning Approval & Building & Sign Permits  |  Business License  |  Determining the Legal Form of a Business  |

|  Certificate for a DBA Company  |  Incorporating Your Business  |  Occupational Licenses  |  State Labor Laws  |

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Local Requirements

Zoning Approval & Building & Sign Permits

Before applying for a business license, first verify that the type of business & its physical location complies with local zoning regulations. Zoning laws vary significantly throughout the state.  Zoning approval is a one-time occurrence. Zoning offices can supply business license applications.  If the proposed business site is not in compliance, you must apply for a permit to change the current zoning. Home-based businesses must apply for a home occupation permit. Certain limitations apply.  Signage for your business requires a sign permit. If you plan to build a new building or to alter an existing building, apply for a building permit.  Contact: Columbia County Clerk, (870) 235-3774; Lafayette County Clerk, (870) 921-4633; Miller County Clerk, (870) 774-4501; or Union County Clerk, (870) 864-1910.

Business License (also known as privilege license)

After verifying zoning compliance, the next step is to apply for a business license. Some cities and counties do not issue business licenses.  Also, depending on the type of business, there may be additional licenses and fees required.  Apply for a business license in the city in which the business is physically located. If located outside of the city limits, contact the county collector or clerk's office.  If the business has a physical location in other cities, inquire about a business license for these cities.  Businesses located outside the city limits may still need a business license to operate within the city limits.

Determining the Legal Form of A Business

Be sure to research and discuss the specific advantages and disadvantages of each form of ownership with a qualified accountant or attorney before you finalize your decision.  Forms of ownership include sole proprietor, C Corporation, S Corporation, General Partnership, Limited Partnership, Limited Liability Partnership, and Limited Liability Company.  For a brief summary of the most common types of businesses go to, www.sosweb.state.ar.us/corp_ucc_corp-info-entity.html

Certificate for DBA (Doing Business As) Company

Sole proprietors and general partnerships operating their business under a fictitious or assumed name must apply for a DBA certificate with the county in which the business is physically located.  DBA application fees vary and generally, are a one-time occurrence.  A business name change, ownership change or business closure, will require filing an amendment   at the clerk’s office.    The county clerk's office will conduct a complimentary name search for the business. Inquire about a DBA application if a business is incorporated but operating under another business name.  A DBA does not protect or reserve a business name.  Contact: Columbia County Clerk, (870) 235-3774; Lafayette County Clerk, (870) 921-4633; Miller County Clerk, (870) 774-4501; or Union County Clerk, (870) 864-1910.

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State Requirements

Incorporating Your Business

A business is not required to incorporate. There is a one-time filing fee to incorporate. Thereafter, a corporation will pay an annual franchise fee – a minimum of $50.  Incorporating a business offers individuals a safeguard in protecting personal assets from liability.  Incorporating ensures a business name will not be used by other incorporated businesses within the state. Contact: Secretary of State's Office, 501 Woodlane (Aegon Building across from the State Capitol), Little Rock, AR 72201, (501) 682-3409, www.sosweb.state.ar.us

Occupational Licenses

To research the regulations that apply to specific occupations in Arkansas, contact the Arkansas Economic Development Commission, (501) 682-6105 or 1-800-ARKANSAS.

State Labor Laws

State labor laws, such as Worker’s Comp, apply to those companies employing four or more people and gross sales under $500,000.  Items such as wages, overtime, etc., are governed by Federal labor laws.  Contact: Arkansas Department of Labor in Little Rock, (501) 682-4505, www.state.ar.us/labor

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Federal Requirements

Employer Identification (EIN) Number

Employer Identification Numbers, also known as Federal Employer Identification (EIN) Numbers, are used to report withholding taxes and should be applied for 6-8 weeks prior to hiring.  EINs are issued by the IRS.  You may apply for an EIN online at

www.irs.gov/businesses/small/article/0,,id=98350,00.html

Federal Labor Laws

Contact the U.S. Department of Labor for questions about minimum wage, overtime wages,  Occupational Safety & health Administration, the Americans with Disabilities Act, the Family Medical Leave Act, etc.  www.dol.gov/compliance/