Conway AR Business License: The City Requires None, Plus the Letter of Verification, Free A&P Permit and Private-Club Rules in a Dry County

Does Conway AR require a business license? As of 2026, no general one. The City of Conway's FAQ says “No business license required; letter of verification is available upon request.” That answer is useful, but it leaves out what most new owners still need to check: zoning, a free Advertising and Promotion (A&P) permit if you sell prepared food, a temporary permit for some mobile vendors, and, if you plan a private club, the beverage rules that apply because Faulkner County is dry.

This guide walks through those steps in order. Where a figure should be confirmed with the agency or city office before you file, we say so.

Informational only: This article is general information, not legal or tax advice. Consult a qualified attorney or CPA for complex situations, including entity choice, liquor licensing and short-term rental compliance.

How Conway fits into Arkansas licensing

Arkansas has no general state business license, the Secretary of State does not issue business licenses, and counties issue no general business license. The variation happens at the city level. Little Rock and North Little Rock charge a base fee plus an employee-based amount, and Bentonville runs a free registry. Conway does not license like Little Rock, so do not assume a Little Rock answer applies here.

Arkansas registrations are organized by activity, not by one permit:

• Sales and use tax and withholding: Department of Finance and Administration (DFA), through the Arkansas Taxpayer Access Point (ATAP)
• Unemployment insurance: Division of Reemployment
• Entities and the franchise tax report: Arkansas Secretary of State
• Sole proprietor assumed names: county clerk
• Occupational licenses: the agency or board for your trade, such as the Department of Health for food establishments or the Alcoholic Beverage Control Division for alcohol

Materials and information to gather first

• Your business name, plus a backup name in case the first is unavailable or does not meet naming rules
• Your entity choice: sole proprietorship, LLC or corporation
• The Conway street address where you will operate, and your landlord's contact information if you rent
• A written description of what you sell and how: on-site, delivery, mobile, catering or short-term rental
• For an LLC or corporation, an Arkansas street address for your registered agent. A P.O. Box is not accepted.
• Your planned employee count, if you will hire
• A filing budget, with about $50 set aside for a sales and use tax permit if it applies

Step-by-step: confirming what Conway requires

Step 1: Request a letter of verification from the City Clerk

Ask the City Clerk for a letter of verification. The city says it is available upon request. Banks, landlords, lenders and some vendors ask for proof that your business is locally compliant, and this letter is the document that serves that purpose. Ask about any fee and turnaround time when you call, and get the letter in writing.

Step 2: Check zoning with Planning and Development

Call Planning and Development at 501-450-6105 before you sign a lease or buy equipment. Describe your exact use, not a general category. If you run a home occupation, know the limit: it may not put up signage or generate vehicular traffic. A home bakery with customers coming and going, or a sign in the yard, can fail this check even though Conway charges no general license. Ask for the answer in writing.

Step 3: Register your business name

The filing office depends on your entity type:

• Sole proprietor: record your assumed name with the county clerk. The Secretary of State does not handle this filing. Each county sets its own recording fee, so confirm the amount with the Faulkner County Clerk.
• LLC: file the Certificate of Organization (Form LL-01) with the Secretary of State for a $45 online filing fee ($50 on paper). The name must include Limited Liability Company, Limited Company, or an abbreviation such as LLC, LC, L.L.C. or L.C. A company performing a professional service must use a professional designation such as PLLC or P.L.L.C. instead.
• Corporation: file Articles of Incorporation for Domestic For-Profit Corporation (Form DN-01) for a $45 online filing fee ($50 on paper).
• Trade name for an entity: file the Application for Fictitious Name with the Secretary of State for $22.50 online or $25.00 on paper. A domestic corporation must also file an approved form with the county clerk where its registered office is located, unless that office is in Pulaski County. A Conway registered office is not in Pulaski County, so plan for that second filing.

Every registered entity must keep a registered agent. The agent may be an individual at a qualifying Arkansas street address or a commercial registered agent. Changing the agent is filed with the Secretary of State at no fee. The Secretary of State's business search lets you check whether a name is already on record before you file.

Step 4: Get a sales and use tax permit

Any business selling tangible personal property or taxable services must obtain a sales and use tax permit from DFA. The permit costs $50 and is applied for through ATAP at the DFA sales and use tax registration page. The state sales tax rate is 6.5%.

Step 5: Register for withholding and unemployment if you hire

If you pay employees, register for withholding through ATAP and for unemployment insurance with the Division of Reemployment. Register early, ideally before your first payroll. Confirm fees and deadlines with each agency, because this article does not set them out.

Step 6: Get the free A&P permit if you sell prepared food

Restaurants and mobile food vendors need an A&P permit for each location. The City Clerk issues it free. Prepared food also carries a 2% city A&P tax on top of sales tax. Combined, the rate on prepared food is about 11.125%:

Component	Rate
State sales tax	6.5%
City sales tax (since April 1, 2026)	2.125%
Faulkner County tax	0.5%
City A&P tax on prepared food	2%
Combined rate on prepared food	about 11.125%

Confirm the combined rate with DFA and the City Clerk before you set menu prices. Food establishments are licensed by the Department of Health, so confirm that application and its fees with the Department as well.

Step 7: Check mobile vendor and ice cream rules

Mobile vendors in place for more than 14 days need a $250 a year temporary building permit. Ice cream vendors pay $25 a year. Each mobile location still needs its own A&P permit, so plan your route before you apply.

Step 8: Plan for short-term rentals

A short-term rental in Conway needs a Short-Term Rental License at $100, renewed annually under Ord. O-21-94. You will also need an inspection, a $1,000,000 general commercial liability policy, a local representative and an A&P permit. Ask your insurer whether the policy meets the city's requirement before you buy it.

Step 9: Set up a private club in a dry county

Faulkner County is dry, so a private club cannot rely on a city permit alone. The Alcoholic Beverage Control Division must approve the club first. After state approval, the city charges:

• A $250 council application
• A $50 a year city supplemental beverage permit, or $25 if first obtained after July 1. The permit expires December 31.
• A 5% supplemental beverage tax

Confirm the order of approvals, and whether each fee is one time or recurring, with the ABC Division and the City Clerk. Do not sell or serve alcohol until every approval is in hand.

Step 10: Calendar your recurring filings

An LLC pays a flat $150 Annual LLC Franchise Tax Report, due on or before May 1 each year for the year ended December 31 before. A late filing adds a $25 penalty plus interest. Corporations file the Annual Corporation Franchise Tax Report by the same May 1 deadline. The minimum tax is $150, or 0.3% of outstanding capital stock if that is greater. A corporation without authorized stock pays $300. File online through the Corporations Online Filing System.

Expected results

If you complete these steps in order, you should end up with a written letter of verification, a zoning answer for your use, and the state registrations that match your activity. Timing varies. The Secretary of State lists 3 to 5 business days for all filings, whether mailed, dropped off or filed online, and says most filings such as articles of incorporation are typically completed within two business days of receipt. In-person drop-offs currently carry a 48 hour turnaround. The Secretary of State does not publish an expedited service or expedite fee, so plan accordingly. Your results may differ, and the final answer for your business comes from the city or agency that handles that item.

Tips

• Get the zoning answer and the letter of verification in writing. Verbal answers are hard to prove later.
• Ask the City Clerk whether each truck, cart or event location needs its own A&P permit, and treat each location as separate.
• Remember that a name issued by the Secretary of State does not by itself grant an exclusive right to use it. Check the Business and Commercial Services Division for trademark and name conflicts before you buy signage.
• Put May 1 on your calendar the day you form an entity.

Common mistakes to avoid

• Assuming Conway works like Little Rock. Conway has no general license, but its food, mobile and alcohol rules still apply.
• Skipping the free A&P permit. It costs nothing, but operating without it creates a compliance gap that can surface at the worst time.
• Running a home business with signs or heavy traffic. Zoning, not licensing, is the usual problem.
• Using a P.O. Box for a registered agent. The filing will be returned for correction.
• Serving alcohol before approvals. In a dry county, every approval must clear first.
• Treating a fictitious name as a license. It registers a name. It does not authorize operations.
• Missing the May 1 report. The late penalty is $25 plus interest.

Next steps

Work through the steps in order, starting with the City Clerk and Planning and Development. Keep a copy of every confirmation. This article is informational only and is not legal or tax advice. Have an attorney or CPA review your entity choice, any liquor application and any short-term rental plan before you commit money.