Arkansas Business Licenses by City: Fees and Rules in Little Rock, Fayetteville, Fort Smith, Springdale, Bentonville and Conway (No License)
Arkansas Business Licenses by City: Fees and Rules in Little Rock, Fayetteville, Fort Smith, Springdale, Bentonville and Conway (No License)
If you are opening a business in Arkansas, the first question is usually whether you need a state license. In most cases you do not. Arkansas has no general statewide business license, the Secretary of State does not issue business licenses, and counties do not license businesses. The licensing decisions that affect your costs happen at the city level, and that is where fees vary most. This guide explains how Arkansas cities set their own rules, what six major cities charge, and which state registrations and occupational licenses may apply on top of a city license.
This article is informational, not legal or tax advice. Fees and rules change, and the city clerk or the issuing agency is the final authority. For complex situations, including multi-city operations, professional services or choosing an entity, consult a qualified Arkansas attorney or CPA.
Do I Need a Business License in Arkansas?
Usually you need no state business license, but you may need a city license and several state registrations. Your obligations fall into three groups:
- State registrations: entity filings with the Secretary of State, sales and use tax and withholding through the Department of Finance and Administration (DFA), and unemployment insurance through the Division of Reemployment.
- City licenses or registries: set by each city, so the requirement depends on where your business operates.
- Occupational licenses: issued by a state board or agency when your trade is regulated, such as contracting, electrical work, food service, or alcohol sales.
The sections below cover each layer, starting with the city level, where costs vary the most.
How Arkansas Cities Set Their Own Rules
Arkansas has 75 counties and about 500 municipalities. Each city decides whether to levy a business license. Under A.C.A. 26-77-102, as summarized in the Arkansas Municipal League FAQ:
- The city council must approve the license ordinance by a two-thirds vote.
- A city may not base its license fee on earnings.
- A city generally may not charge a business that is already licensed by another Arkansas city, unless the business has a place of business in more than one city.
The result is that the same business can owe a different amount, or nothing, depending on its address.
Arkansas Business License Cost by City
The table below shows the published figures for the six cities in this guide. Some cities adjust fees on set dates, so confirm the current amount with the city before you budget.
| City | How the license is priced | Published fee | Key rule |
|---|---|---|---|
| Little Rock | Category base fee plus a per-employee charge, or 0.24% of stock | Base fees rise 3% on January 1, 2027 | Confirm your category with the city clerk |
| Fayetteville | Flat fee by location type | $98 new non-home-based, $31 new home-based, $10 annual renewal | All licenses expire October 31, with a $30 late fee after that date |
| Fort Smith | Annual fee | Generally $100 per year | Confirm with the city |
| Springdale | Base fee plus per-employee charge | $40 plus $2.50 per employee, maximum $300 | Confirm how employees are counted |
| Bentonville | Free business registry | No fee | A registry, not a license |
| Conway | No license required | None | Confirm that no other city filing applies |
Little Rock
Little Rock sets the license as a category base fee plus a per-employee charge, or 0.24% of stock, depending on your business category. Under Ordinance 22,699, passed December 16, 2025, every base fee rises 3% on January 1, 2027. If you plan to open or renew in 2027, budget for the higher amount, and ask the city clerk which calculation applies to your category.
Fayetteville
Fayetteville has required business licenses since 2011. A new non-home-based business pays $98, and a new home-based business pays $31. Every license expires October 31. The annual renewal is $10, and paying after October 31 adds a $30 late fee. Apply within 60 days of opening.
Fort Smith
Fort Smith's city pages generally list a $100 annual fee. Because the figure is presented as a general rule, confirm the exact amount, the due date and the calculation with the Fort Smith city clerk before you apply.
Springdale
Springdale charges $40 plus $2.50 per employee, with a maximum of $300. The published schedule applies the per-employee charge to the first 25 employees, so ask the city how it calculates the fee for larger staffs and whether owners or part-time workers count.
Bentonville
Bentonville maintains a free business registry rather than a license. There is no fee, but you should still confirm with the city whether your business should register.
Conway
Conway does not require a business license. That does not remove your state obligations. A Conway business still needs the state filings and occupational licenses that apply to its activity.
Outside this group, Benton charges $50 plus $1 per employee. North Little Rock uses a base fee plus employee formula similar to Little Rock, so check with its city office for current figures.
State Registrations and Filing Costs
Registrations are organized by activity, not by license. Use this table to map your filings:
| Activity | Where you file or register | Cost and notes |
|---|---|---|
| LLC formation | Secretary of State, Certificate of Organization (Form LL-01) | $45 online, $50 on paper |
| Corporation formation | Secretary of State, Articles of Incorporation for Domestic For-Profit Corporation (Form DN-01) | $45 online, $50 on paper |
| Name reservation | Secretary of State | $22.50 online or $25 on paper, holds the name for 120 days |
| Entity trade name | Secretary of State. A domestic corporation also files with the county clerk where its registered office is, unless that office is in Pulaski County | $22.50 online or $25 on paper |
| Sole proprietor assumed name | County clerk in your county | Set by each county, so confirm locally |
| Sales and use tax permit | DFA through the Arkansas Taxpayer Access Point (ATAP) | $50. The state sales tax rate is 6.5% |
| Withholding | DFA through ATAP | Confirm fees with DFA |
| Unemployment insurance | Division of Reemployment | Confirm fees with the division |
Registered agent. Every LLC and corporation must appoint a registered agent with a street address in Arkansas, and the agent must be located there. A P.O. Box is not acceptable, and an incomplete filing will be returned for correction. You can change your agent by filing with the Secretary of State at no fee.
Processing time. The Secretary of State lists anticipated processing of 3 to 5 business days for mailed, dropped off or online filings. Its FAQ says most filings are completed within two business days of receipt. In-person drop-offs carry a 48-hour turnaround. The office does not offer an expedited service or expedite fee.
Recurring costs. An LLC pays a flat $150 Annual LLC Franchise Tax Report, due May 1 each year. A late filing adds a $25 penalty plus interest. A corporation files an Annual Corporation Franchise Tax Report, also due May 1, with a minimum tax of $150 or 0.3% of outstanding capital stock if that is greater. Corporations without stock pay $300.
Occupational Licenses Come From State Agencies
If your trade is regulated, the license comes from a state board or agency, not from the city. Check the issuer for your trade:
- Department of Labor and Licensing: the Contractors Licensing Board, the Electrical Examiners board and the HVAC/R Board.
- Department of Health: plumbers, cosmetologists, massage therapists and food establishments.
- Alcoholic Beverage Control Division: alcohol sales.
- Medical Marijuana Commission: cannabis businesses.
- State Police: security businesses and investigators.
This guide does not list fees for these boards. Confirm the cost, application steps and renewal dates with the issuing agency.
Cost Checklist for Starting a Business in Arkansas
- Choose your entity. Budget $45 filed online ($50 on paper) for an LLC Certificate of Organization or corporation Articles of Incorporation. Add $22.50 online ($25 on paper) if you want to reserve a name for 120 days.
- Appoint a registered agent with an Arkansas street address. A P.O. Box will not work.
- Confirm the city license for each location. Use the city table above, and confirm the figure with the clerk.
- Get a sales and use tax permit for $50 if you sell taxable goods or services.
- Register for withholding and unemployment insurance if you have employees.
- Check occupational licensing with the relevant board or agency.
- Calendar your recurring dates: May 1 for the franchise tax report ($150 for an LLC), and your city renewal date, such as October 31 in Fayetteville.
Official Arkansas Resources
- Arkansas Secretary of State, Business and Commercial Services Division
- Corporations Online Filing System
- Business name search
- Arkansas Department of Finance and Administration
- Sales and use tax account registration
- Arkansas Small Business and Technology Development Center
- SBA Arkansas district office
Before you commit money to a city license or entity filing, verify the current fee on the agency or city page. If your structure, staffing or multi-city operations are complicated, a qualified Arkansas attorney or CPA can confirm what applies to you.