How to Open a Bar or Private Club in Jonesboro, Arkansas: Dry County Permit, City Supplemental Permit and Supplemental Beverage Tax

Craighead County is dry, so you cannot open a conventional bar that sells alcohol under a standard permit. In Jonesboro, the usual route is an Alcoholic Beverage Control (ABC) private-club permit. The city then adds its own requirements: a Supplemental Privilege License Permit on top of the regular business privilege license, and a city supplemental beverage tax that is reported and paid monthly. If you are researching how to start a Jonesboro, Arkansas private club business, this guide covers the order to work in, the costs we can verify, the figures you still need to confirm, and the mistakes that cause delays.

What a Dry County Means for a Jonesboro Bar

A dry county prohibits the sale of alcohol through ordinary retail channels. Private clubs are the exception the state allows. Act 762 of 2025, effective August 5, 2025, allows a private club to be operated as a for-profit business. That matters because many owners assumed a private club had to be a nonprofit membership organization. Confirm the current rules with ABC before you choose an ownership structure, because the statute is new and agency practice may still be developing.

Your Jonesboro bar therefore needs at least three layers of approval: a state ABC private-club permit, the city business privilege license with its supplemental permit, and the state and city tax registrations that come with selling taxable goods and services. Arkansas has no general statewide business license, and the Secretary of State does not issue business licenses. The licenses that matter for your bar come from ABC, the city, and the Department of Finance and Administration.

Materials and Information You Need Before You File

• Entity formation documents. For an LLC, the Certificate of Organization for Limited Liability Company (Form LL-01). For a corporation, the Articles of Incorporation for Domestic For-Profit Corporation (Form DN-01). Each carries a $45 online filing fee ($50 on paper).
• A registered agent with a street address in Arkansas. A P.O. Box will not work.
• A business name that meets Arkansas rules, and optionally a name reservation for $22.50, which holds the name for 120 days.
• A federal Employer Identification Number (EIN) from the IRS, which you will need for banking, payroll and tax accounts.
• A location commitment, such as a signed lease or purchase contract, that you make only after zoning is confirmed.
• A written operating plan with floor plan, hours, occupancy, food service plans and entertainment plans. ABC and city staff will ask for most of this.
• Ownership records for every member, manager, officer or shareholder who will hold an interest in the business.
• A budget for annual costs, including the $150 LLC franchise tax report, ABC fees and the city permit.
• Contact information for the Jonesboro Collections Office at 870-932-3042, which handles city tax and license questions.

Step 1: Form Your Business Entity

Most owners choose a limited liability company because it separates personal and business liability and is taxed by default as a pass-through entity. A corporation is also possible. Either way, file with the Arkansas Secretary of State, Business and Commercial Services Division. Online filing runs through the Corporations Online Filing System at https://www.ark.org/sos/corpfilings/index.php. You can also mail or drop off paper filings.

Before you file, search the name at the Secretary of State business search. An LLC name must include Limited Liability Company, Limited Company, or an abbreviation such as LLC or LC. The Secretary of State's new business page lists anticipated processing of 3 to 5 business days for all filings. Its Business Services FAQ states that most filings are completed within two business days of receipt. The Secretary of State does not publish an expedited service or expedite fee. An in-person drop-off currently carries a 48-hour turnaround.

If you choose a corporation, the annual report is due May 1. The minimum tax is $150, or 0.3 percent of outstanding capital stock if that amount is greater. Corporations without authorized stock pay $300. Late filing adds a $25 penalty plus interest.

Step 2: Appoint a Registered Agent

Every registered entity must appoint and continuously maintain a registered agent to accept legal papers and official notices. The Arkansas term is registered agent. The agent's address must be 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 may act as your own registered agent if you meet the requirements, or you may use a commercial registered agent. Changing the agent later is filed with the Secretary of State at no fee.

Step 3: Confirm Zoning and Location With Planning and Zoning

Do this before you sign a lease. A bar or private club has more zoning sensitivity than most retail uses, including parking, distance from other uses, hours of operation and building occupancy. Ask the city's Planning and Zoning staff whether the address allows a private club with your intended hours and entertainment. Get the answer in writing if you can. Home-based and internet businesses also need Planning and Zoning approval first, so a private club operated from a residence is not a realistic shortcut.

Step 4: Apply for the ABC Private-Club Permit

The ABC Division licenses alcohol sales in Arkansas, and the private-club permit is the state approval that makes sales possible in a dry county. Act 762 of 2025 sets the application and renewal fee for a hotel, restaurant or large-event facility private club permit at $1,500 a year, payable on or before June 30, plus an additional $1,500 application fee in an area where liquor sales have not been authorized by local option. Confirm with ABC which permit type applies to your bar, and treat these amounts as provisional until ABC confirms them in writing.

Ask ABC for the current application packet, the required background and ownership disclosures, and the review timeline. Plan for ABC review to take longer than the Secretary of State filing. Do not sign a long-term lease, buy inventory or announce an opening date until you have a clear picture of what ABC requires for your ownership structure.

Step 5: Obtain the City Privilege License and Supplemental Permit

Jonesboro requires a business privilege license. The amount depends on the type of business and its stock, so confirm the regular fee with the Collections Office at 870-932-3042 before you budget. Because you are operating a private club, you also need a Supplemental Privilege License Permit under Jonesboro Code Title IV, chapter 32, section 4.32.31. That permit costs 50 percent of the regular fee, capped at $250 a year.

Here is how the cap works in practice. If your regular privilege license fee were $400, the supplemental permit would be $200. If it were $600, 50 percent would be $300, but the cap limits the supplemental permit to $250. The regular fee figure above is a hypothetical for illustration only. Confirm the actual regular fee with the city before you calculate your total.

Step 6: Register for State Tax and Employer Accounts

Any business selling tangible personal property or taxable services must hold a sales and use tax permit from the Arkansas Department of Finance and Administration. The permit costs $50 and is applied for through the Arkansas Taxpayer Access Point (ATAP) at the Department of Finance and Administration sales and use tax registration page. The state sales tax rate is 6.5 percent. Confirm with the Department which of your sales, including food, beverages and merchandise, are taxable and how they are reported.

If you will have employees, register for withholding through ATAP as well. Unemployment insurance is handled separately through the Division of Reemployment. Register for both before your first payroll.

Step 7: Set Up the City Supplemental Beverage Tax and Other City Taxes

The city's Local Supplemental Tax Remittance Form lists the alcohol beverage tax at 5 percent. The code text prints the rate differently, so use the form as your working figure and confirm the rate with the Jonesboro Collections Office before you set up your point-of-sale system. The tax is paid monthly on the 20th, filed along with the state return. A 10 percent late fee applies if you pay late.

The same form lists two other city taxes you should confirm for your operation. A 2 percent prepared foods tax has been collected since January 1, 2022 under ORD-21:046. A 4 percent hotel and motel tax also appears on the form. Whether either applies depends on what you sell and whether you offer lodging. Ask the Collections Office, and set up your bookkeeping so each tax has its own line so you can file accurately.

Step 8: Build Your Operating Rules Around the Hours Limit

Private clubs may not dispense alcohol or allow drinking between 2:00 a.m. and 10:00 a.m. Patrons must leave within 30 minutes after the 2:00 a.m. closing hour. Write these rules into your closing procedure, staff schedule and point-of-sale settings. A bar that treats 2:00 a.m. as the start of cleanup, rather than the end of service, can run into compliance problems quickly.

Step 9: Address Food, Security and Other Local Approvals

If you serve food, the Arkansas Department of Health licenses food establishments, so confirm the permit type and fee with the Department before you open a kitchen. If you hire outside security or investigators, those are licensed by the Arkansas State Police. Ask the city about any additional inspections that apply to your occupancy and building, since Arkansas has no county business license and local requirements vary by city.

Step 10: Calendar Your Recurring Compliance Deadlines

Opening is only the first deadline. Build a compliance calendar with these items. The LLC Annual Franchise Tax Report carries a flat $150 fee and is due May 1 each year, with a $25 penalty plus interest for late filing. The city beverage tax is due monthly on the 20th. ABC private club permit fees are payable on or before June 30 each year, and city licenses also require renewal, so confirm each renewal date when you are issued the license.

Common Mistakes to Avoid

• Assuming a standard liquor license works in Craighead County. The dry county status drives the entire process, so start with the ABC private-club permit.
• Signing a lease before zoning is confirmed. Planning and Zoning approval can determine whether the space works at all.
• Forgetting the supplemental permit. The regular privilege license does not replace the Supplemental Privilege License Permit for a private club.
• Using a P.O. Box as the registered agent address. The filing will be returned, which delays your entity formation.
• Budgeting from unverified fee figures. The ABC fees, the city regular privilege fee and the beverage tax rate all need written confirmation before you finalize your budget.
• Missing the monthly beverage tax deadline. The 10 percent late fee adds up quickly if you do not build the 20th into your month-end routine.
• Treating the 2:00 a.m. rule as flexible. Late-night service and patron departure rules are among the first things inspectors check.
• Running home-based or online sales without approval. Planning and Zoning approval comes first.

What to Expect as You Work Through the Process

Owners who prepare their documents before filing tend to move through the process more smoothly, though the timing depends on agency review and the completeness of your application. The Secretary of State filing is usually the fastest step, while ABC and city approvals often take longer and may require follow-up questions. Many owners find that a clean operating plan, a confirmed zoning answer and a written list of fees from each agency makes the rest of the process more predictable. No timeline or outcome can be guaranteed, so build a buffer into your opening date and your lease commitments.

Where to Get Help

• Arkansas Secretary of State, Business and Commercial Services Division: https://www.sos.arkansas.gov/business-commercial-services-bcs/
• Arkansas Department of Finance and Administration: https://www.dfa.arkansas.gov/
• Arkansas Small Business and Technology Development Center: https://asbtdc.org/
• U.S. Small Business Administration, Arkansas district: https://www.sba.gov/district/arkansas
• Jonesboro Collections Office: 870-932-3042

For the ABC private-club permit, contact the Alcoholic Beverage Control Division directly through the state's official website, since that agency's application details are not listed in this guide.

Before You File: Important Notice

This article is informational only. It is not legal, tax or licensing advice, and it does not create an attorney-client or accountant-client relationship. Fees, rates and deadlines change, and several figures in this guide must be confirmed with the named agency before you rely on them. Because a private club involves liquor licensing, zoning, lease negotiation, entity structure and tax reporting, consult a qualified Arkansas attorney and a certified public accountant before you commit money or sign a lease.