Arkansas Occupational Licensing Guide: Which State Board Licenses Contractors, Electricians, Plumbers, Cosmetologists, Barbers, Towing and More
Arkansas Occupational Licensing Guide: Which State Board Licenses Contractors, Electricians, Plumbers, Cosmetologists, Barbers, Towing and More
Most new Arkansas businesses deal with two separate kinds of government paperwork. The first is registration, which tells the state and your city that you exist, collect sales tax, or have employees. The second is occupational licensing, which is permission from a specific board or agency to perform a regulated trade. People mix these up constantly, and it costs them weeks. This guide separates the two and shows which body licenses which trade. Arkansas occupational licensing is run agency by agency and board by board, so your first job is finding the right regulator.
Disclaimer: This is informational content, not legal or tax advice. Fees, deadlines, and requirements change, and boards apply their rules to individual circumstances. Confirm current details with the agency named here, and consult a qualified attorney or CPA for complex situations, such as a licensed trade combined with multiple entities or locations.
Arkansas Has No General Business License
Arkansas does not issue a general statewide business license. The Secretary of State does not issue business licenses either, and there is no county business license. Your local obligations come from your city. With 500 municipalities and 75 counties in the state, the rules depend on where you operate, so check before you sign a lease.
Cities set their own requirements, and they vary widely:
- Little Rock and North Little Rock charge a business license or privilege license based on a base amount plus the number of employees. Confirm the current amounts with each city.
- Bentonville maintains a free registry.
- Conway does not require a city business license.
Registrations Are Handled by Activity
Registrations tell an agency that you are operating. They do not give you permission to perform a trade. Each one is handled by the office that administers that tax or entity:
- Sales and use tax and withholding: Arkansas Department of Finance and Administration (DFA), through the Arkansas Taxpayer Access Point (ATAP). A sales and use tax permit costs $50 and is required for any business selling tangible personal property or taxable services. The state sales tax rate is 6.5%. Apply at the DFA sales and use tax registration page.
- Unemployment insurance: the Division of Reemployment, once you have employees.
- Entities and the franchise tax report: the Arkansas Secretary of State, Business and Commercial Services Division. An LLC files a Certificate of Organization (Form LL-01) for a $45 filing fee and pays a flat $150 annual franchise tax, due May 1 each year. A corporation files Articles of Incorporation (Form DN-01) for the same $45 filing fee and files an annual report with a minimum tax of $150, or 0.3 percent of capital stock if that is greater.
- Sole proprietor assumed names: the county clerk in your county. The Secretary of State does not handle these. An LLC or corporation that wants to operate under a trade name files with the Secretary of State instead, at $22.50 online or $25.00 on paper.
Every LLC and corporation must also appoint and continuously maintain a registered agent with a street address in Arkansas. A P.O. Box is not an acceptable registered agent address, and the filing will be returned if it is incomplete.
Occupational Licensing by Agency and Board
Occupational licenses come from the regulator for your trade. Use the table below as a starting map. Phone numbers are included where they have been verified. For every other contact, confirm the current number and process on the agency's website before you apply.
| Trade or activity | Licensing body | Contact |
|---|---|---|
| Contractors | Contractors Licensing Board, Department of Labor and Licensing (DLL) | Confirm with the board |
| Electricians | Board of Electrical Examiners, DLL | Confirm with the board |
| HVAC and refrigeration | HVACR Licensing Board, DLL | Confirm with the board |
| Plumbing and natural gas | Department of Health | 501-661-2642 |
| Cosmetology | Department of Health | 501-682-2168 |
| Body art | Department of Health | Confirm with the Department of Health |
| Barbers | State Board of Barber Examiners, DLL | 501-682-4035 |
| Massage therapy | Department of Health | Confirm with the Department of Health |
| Food establishments (food permits) | Department of Health | Confirm with the Department of Health |
| Towing and recovery | Towing and Recovery Board, DLL | 501-682-3801 |
| Home inspection | Home Inspector Registration Board, DLL | Confirm with the board |
| Real estate | Real Estate Commission, DLL | Confirm with the commission |
| Lawn care and pest control (pesticide applicators) | Department of Agriculture | 501-225-1598 |
| Alcohol sales | Alcoholic Beverage Control Division | Confirm with the division |
| Cannabis | Medical Marijuana Commission | Confirm with the commission |
| Security and investigators | Arkansas State Police | Confirm with the agency |
| Child care facilities | Department of Education, Office of Early Childhood | Check with DESE to confirm which office licenses a new facility |
The Trades People Most Often Confuse
Contractors and Electricians
The Contractors Licensing Board and the Board of Electrical Examiners both sit in the Department of Labor and Licensing. The HVACR Licensing Board does too. Before you apply, confirm with the board which classification fits your work, because the scope of the license controls which jobs you can bid and perform. Ask each board for its current exam, experience, and fee requirements, since none of those figures should be assumed from another trade.
Plumbing and Natural Gas
Plumbing is not a DLL trade. The Department of Health licenses plumbers and natural gas work. Call 501-661-2642 to confirm the current application process and any exam requirements.
Cosmetology and Barbering
This is the split that trips up the most applicants. Cosmetology and body art are licensed by the Department of Health, and cosmetology can be reached at 501-682-2168. Barbers are different. The State Board of Barber Examiners sits in the Department of Labor and Licensing and can be reached at 501-682-4035. Barbers are not licensed by the Department of Health, so applying to the wrong agency wastes time and fees.
Towing and Recovery
The Towing and Recovery Board, housed in DLL, licenses towing and recovery operators. Call 501-682-3801 to confirm the application requirements. Check with your city about any local registration, since cities regulate businesses separately from state boards.
Other Regulated Activities
Home inspectors register with the Home Inspector Registration Board, and real estate professionals are licensed by the Real Estate Commission, both within DLL. Massage therapy and food establishments are handled by the Department of Health, which also issues food permits. Lawn care and pest control businesses that apply pesticides need applicator licensing through the Department of Agriculture at 501-225-1598.
Alcohol sales go through the Alcoholic Beverage Control Division, cannabis through the Medical Marijuana Commission, and security and investigator licenses through the Arkansas State Police. Child care is in transition. The Office of Early Childhood moved from the Department of Human Services to the Department of Education under the 2023 LEARNS Act, and it now posts licensing requirements. Check with DESE to confirm which office licenses a new facility.
Licensed in Another State? Act 457 of 2023
Act 457 of 2023 requires boards to grant automatic licensure to out-of-state licensees who are in good standing for one year. An Arkansas law exam may still be required. The process differs from board to board, so check each board directly rather than assuming automatic recognition of your out-of-state license.
A Practical Sequence for Your First Filings
- Identify the regulator. Use the table above, then confirm the board's current requirements by phone or on its website.
- Form your entity if you need one. An LLC files Form LL-01 with the Secretary of State for a $45 filing fee. Name reservation costs $22.50 and holds the name for 120 days. The Secretary of State anticipates processing of 3 to 5 business days for all filings, and it lists a 48 hour turnaround for in-person drop off.
- Register for taxes. Get a $50 sales and use tax permit through ATAP if you sell tangible goods or taxable services. Register for withholding and unemployment insurance once you have employees.
- Check your city. Confirm whether your city requires a business license, privilege license, or registry, and what the base amount and employee count rules are.
- Apply for the occupational license. Submit the board's application, pass any required exam, and pay the board's fees.
- Calendar the recurring filings. An LLC's annual franchise tax report is $150 and is due May 1 each year. Late filing adds a $25 penalty plus interest.
Where to Get Help
Start with the regulating agency for your trade, then review the Secretary of State's business services page at sos.arkansas.gov. The Arkansas Small Business and Technology Development Center can help with planning questions, and the SBA district page for Arkansas lists resources for small businesses in the state.
If your business combines a licensed trade, multiple entities, or more than one city, talk with a qualified Arkansas attorney or CPA before you file. Occupational licensing rules are specific to each board, and a short consultation is cheaper than correcting a filing after the fact.