Little Rock Business License 2026 and 2027: Base Fee Plus Per-Employee Plus 0.24% of Stock, the 3% Increase and the 2% and 4% A&P Taxes

If your business operates in Little Rock, you need a City of Little Rock Business or Privilege License. The city does not charge one flat fee. Its schedule covers more than 225 business classes, and each class has a base amount plus either a per-employee charge or a per-unit charge. Sellers of goods also add 0.24% of their average stock. Under Ordinance 22,699, dated December 16, 2025, every base fee rises 3% on January 1, 2027. It is the first base fee increase since 2011. The per-employee and stock parts do not change.

This guide shows you how to calculate the license for 2026 and 2027, what to gather before you pay, and how the Advertising and Promotion (A&P) taxes on prepared food, drink and lodging fit alongside it. Arkansas has no general state business license and no county business license, so the city license is the local charge to check first.

Disclaimer: This article is informational content, not legal or tax advice. Fees, rates and deadlines can change, so confirm every figure with the agency named before you pay. For complex situations, consult a qualified attorney or CPA.

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What You Need Before You Start

Gather these items before you call or log in. Having them ready keeps your calculation accurate.

The street address where the business operates in Little Rock.
A plain-language description of your main activity, so you can match it to a city class.
Your current number of employees, counted the way the city instructs. Confirm the counting method with Treasury, including how part-time workers are handled.
For sellers of goods, your average stock value, calculated using the city's method.
Your Arkansas sales and use tax permit number, if you already have one.
Your Secretary of State filing number and entity documents, if you operate as an LLC or corporation.
Any state occupational license number, if your trade is regulated by a state board.
The current fee schedule from the City of Little Rock Treasury Management Division, reachable at 501-371-4567.

Step 1: Confirm the City License Applies to Your Location

The Little Rock license applies to businesses located in Little Rock. Other Arkansas cities run their own systems. North Little Rock also uses a base plus employee formula, but its schedule is separate, so do not apply Little Rock figures there. Bentonville maintains a free registry, and Conway does not impose a city business license. Confirm where your business is located before you use any number in this guide.

Step 2: Find Your Class in the Schedule

Because the schedule has more than 225 classes, choosing the right one matters. Pick the class that matches your primary activity. If your business has more than one activity, ask Treasury how the city assigns the class before you pay. The class determines your base fee and whether a per-employee or stock charge applies.

The 2027 examples below show how the figures are built:

Business type	2027 base fee	Additional charge
Restaurant	$103	$20 per employee
Retail or grocery	$206	0.24% of average stock
Home-based computer services	$103	$30 per employee
Advertising agency	$314	$35 per employee

Step 3: Calculate the Fee

Use this formula for each class:

License fee = base fee + (per-employee charge × number of employees) + (0.24% × average stock, for sellers of goods only)

Two worked examples for 2027:

Restaurant with 12 employees: $103 + ($20 × 12) = $103 + $240 = $343.
Retail store with $150,000 average stock: $206 + (0.24% × $150,000) = $206 + $360 = $566.

For 2026, the base fees are the figures before the 3% increase, roughly $100 for common classes such as restaurants and home-based services, and roughly $200 for retail or grocery. The per-employee and stock charges match 2027. A 12-employee restaurant would therefore pay about $340 in 2026 (about $100 plus $240), compared with $343 in 2027. The difference is only the base increase. Confirm the exact 2026 base for your class with Treasury.

Step 4: Plan Your Payment Date

The license is due in advance, on January 1. For the 2027 license, plan to pay by January 1, 2027, using the higher base fee. If you pay late, a penalty may apply. Call the Treasury Management Division at 501-371-4567 to confirm the penalty amount and how it is calculated, because this guide does not state a penalty figure.

Step 5: Add the A&P Taxes If You Serve Food, Drink or Lodging

The A&P taxes are separate from the license fee. They apply as follows:

2% on prepared food and drink, except mixed drinks.
4% on short-term lodging.

A restaurant pays the 2% on prepared food sales but not on mixed drinks. Confirm with the City of Little Rock what qualifies as short-term lodging, and confirm the registration, reporting and remittance process before you start collecting. If you sell alcohol, you also need a license from the Alcoholic Beverage Control Division. That license is separate from both the city license and the A&P taxes.

Step 6: Add the Sales Tax Permit If You Sell Taxable Goods or Services

Any business selling tangible personal property or taxable services must obtain a sales and use tax permit from the Arkansas Department of Finance and Administration (DFA). The permit costs $50 and is applied for through the Arkansas Taxpayer Access Point. Start at the DFA sales tax registration page.

The combined sales tax rate in Little Rock is 8.625% for October to December 2026. It is made up of the 6.5% state rate, the 1.125% Little Rock rate and the 1.0% Pulaski County rate. Rates can change, so check the DFA website before you set prices or file.

Step 7: Pay and Keep Your Records

Pay the license through the City of Little Rock for the correct year, using the amount you calculated. Confirm the accepted payment methods and the document you will receive as proof of payment. Keep that proof with your formation documents, sales tax permit and A&P records.

Expected results: Once you confirm the correct class and fee, the annual renewal may become a repeatable process. Your bill can still change from year to year, because your employee count and average stock change. Recalculate each January instead of copying last year's figure. Treasury can confirm the outcome for your specific business.

Common Mistakes to Avoid

Paying only the base fee. Leaving out the per-employee or stock charge is the most common underpayment.
Using 2026 figures for 2027. The base fee rises 3% on January 1, 2027, but the per-employee and stock parts do not.
Applying the 3% increase to every charge. Only the base fee changes.
Treating A&P taxes as part of the license. They are separate taxes with their own process.
Choosing a class by guesswork. The class drives the whole calculation, so confirm it before you pay.
Assuming Arkansas has a general state business license. It does not. The Secretary of State does not issue business licenses, and occupational licenses come from industry boards.
Applying Little Rock figures in another city. North Little Rock uses its own schedule, and other cities differ.
Using a year-end stock count. Confirm whether the city wants average stock, and use that method.

Tips for Filing Smoothly

Build a simple spreadsheet with one row per class, the base fee, the per-employee charge and a field for average stock. You can recalculate the fee in minutes each year.
Keep the city and state calendars separate. If you operate as an LLC, the Annual LLC Franchise Tax Report carries a $150 fee and is due May 1. It is filed with the Secretary of State and does not replace the city license.
If you are forming an LLC, the Certificate of Organization (Form LL-01) carries a $45 filing fee online or $50 on paper. The Secretary of State says most filings are completed within two business days of receipt, and its online filing system is available.
If your activity is unusual, call Treasury before you register. Ask which class applies and how employees are counted.
For help with planning, the Arkansas Small Business and Technology Development Center can point you to resources.

Official Resources

This article is informational, not legal or tax advice. If your business has employees in several locations, unusual revenue sources or a complex ownership structure, consult a qualified attorney or CPA before you file.