How to Start a Brewery or Brewpub in Arkansas: $750 Microbrewery-Restaurant Permit, 45,000 Barrel Small Brewery Cap and Self-Distribution

If you want to know how to start a brewery business in Arkansas, plan for several layers of approval, each handled by a different agency. You form an entity with the Arkansas Secretary of State, get federal brewing approval from the Alcohol and Tobacco Tax and Trade Bureau (TTB), obtain a state alcohol license from the Alcoholic Beverage Control Division (ABC), register with the Department of Finance and Administration (DFA), and then clear local, zoning and health requirements. Arkansas has no general state business license and no county business license, so there is no single application that covers everything. This guide follows the order that works for most founders.

One point to settle first: the $750 figure in the title is the fee for the microbrewery-restaurant private club permit that applies in dry areas. It is not the standard brewpub permit fee. The standard fee is not in our verified sources, so confirm the current figure with ABC before you build your budget.

Know Your License Path Before You File Anything

The license you choose controls where you can operate, how you can sell and how much beer you can make. Review the options below with ABC before you sign a lease or order equipment.

Path	Legal reference	What it allows	Fee or cap
Microbrewery-restaurant (brewpub)	A.C.A. 3-5-1201 et seq.	Brewing on site with food service	Confirm current permit fee with ABC. Permits run on the state fiscal year, which ends June 30.
Wholesale authority for a microbrewery-restaurant	Act 207 of 2023, A.C.A. 3-5-1204(a)(10)	Sell and transport your own beer, malt beverage or hard cider to licensed retailers	Up to 5,000 barrels a year. $250 a year wholesale permit.
Small brewery	A.C.A. 3-5-1401 et seq.	Production-focused brewing	45,000 barrel cap. Confirm on-site brewing share and fees with ABC.
Microbrewery-restaurant private club (dry areas)	Act 762 of 2025, effective 2025-08-05	Brewpub operation in dry areas, open to for-profit entities such as LLCs and sole proprietors	$750 per fiscal year

A federal TTB brewer's notice is required in addition to any state license. Plan for it from the start.

Materials and Equipment You Will Need

Brewing ingredients and supplies

• Base malts and specialty malts
• Hops, in pellet or whole-cone form
• Brewing yeast, with a backup supply
• Water, with a lab analysis of your source
• Adjuncts, fining agents and yeast nutrients as your recipes require
• Caustic and acid cleaners, sanitizer and CO2

Brewhouse and cellar equipment

• Grain mill and mash vessel or mash tun with lauter capability
• Brew kettle with whirlpool and a heat exchanger
• Fermenters and brite tanks
• Glycol chiller and cold storage for the cellar
• Kegs, a keg washer and a CO2 system
• Lab tools: hydrometer or refractometer, pH meter and calibrated thermometers
• Batch and production logging software or a spreadsheet

Paperwork and documents

• Certificate of Organization for Limited Liability Company (Form LL-01), or articles for a corporation
• Arkansas registered agent with a street address in the state
• Operating agreement
• Federal employer identification number from the IRS
• TTB brewer's notice
• ABC license application and supporting documents
• DFA sales and use tax permit
• City business license or registry, where your city requires one
• Department of Health food establishment permit, if you serve food
• Written zoning confirmation for your site
• Insurance quotes and a business bank account
• Business plan with a production forecast in barrels

Step-by-Step: How to Start a Brewery in Arkansas

Step 1: Choose your license path

Start with the business model. A brewpub that brews on site and serves food fits the microbrewery-restaurant license under A.C.A. 3-5-1201 et seq. A production-focused brewery looks at the small brewery category under A.C.A. 3-5-1401 et seq. Many brewpubs also want to sell kegs to bars and stores. Under Act 207 of 2023, a microbrewery-restaurant may sell and transport its own beer, malt beverage or hard cider to licensed retailers, up to 5,000 barrels a year, with a $250 a year wholesale permit. In the enacted text, that wholesale authority has no county-size limit.

Two caps matter for your plan. ABC rule 1.19(27) caps total microbrewery-restaurant brewing at 45,000 barrels per calendar year. The small brewery category is also capped at 45,000 barrels, and ABC sets its on-site brewing share and fees, so ask for those figures before you finalize your production plan.

Step 2: Form your entity with the Secretary of State

Most brewery owners choose an LLC. The formation document is the Certificate of Organization (Form LL-01). The filing fee is $45 online or $50 on paper. You can file through the Corporations Online Filing System at https://www.ark.org/sos/corpfilings/index.php, or by mail or in-person drop off. The Secretary of State's Business Services FAQ says most filings are completed within two business days of receipt and that in-person drop offs currently carry a 48 hour turnaround.

Your name must contain Limited Liability Company, Limited Company, or an abbreviation such as LLC or LC. Search existing names at the Secretary of State business search. You can reserve a name for 120 days for $22.50 online ($25 on paper), using the forms listed at the LLC forms and fees page. Issuance of a name does not by itself grant an exclusive right to use it, so run a trademark search separately.

Every entity must appoint a registered agent with a street address in Arkansas where the agent is located. A P.O. Box is not acceptable, and an incomplete filing will be returned. The recurring cost is the Annual LLC Franchise Tax Report, a flat $150 due on or before May 1. A late filing adds a $25 penalty plus interest. If you form a corporation instead, the Articles of Incorporation (Form DN-01) carry the same $45 online filing fee ($50 on paper), and the annual report minimum is $150 or 0.3 percent of outstanding stock if greater, with $300 for corporations without authorized stock.

Step 3: Get federal approval and an EIN

Before you brew for sale, you need a TTB brewer's notice. The notice asks about your business and your premises, so have your LLC documents and your planned address ready. Expect TTB to review the notice before production begins. Confirm current forms, timing and any federal excise tax obligations directly with TTB and your CPA.

Also apply for a federal employer identification number from the IRS. Your bank, DFA, ABC and the Division of Reemployment will ask for it.

Step 4: Check zoning and local licensing

Arkansas has 75 counties and 500 municipalities. Counties issue no general business license, but many cities impose their own business license, privilege license or registry, and each city uses a different basis. Little Rock and North Little Rock charge a base amount plus an amount tied to employees. Bentonville runs a free registry. Conway imposes none. Call your city clerk or planning office before you sign a lease.

Get written confirmation that your site allows both manufacturing and a restaurant or taproom. Also confirm whether your city and county are wet or dry for alcohol sales. That answer decides which permit you can use. Do not sign a lease until both answers are in writing.

Step 5: Apply to ABC

ABC licenses alcohol sales and manufacturing in Arkansas. Your application will typically require your entity documents, your premises details, your brewing plan and, for a brewpub, your food service plan. Build your production forecast before you file, because your annual barrel volume determines whether the 5,000 barrel wholesale authority and the 45,000 barrel caps fit your plan.

The microbrewery-restaurant permit runs on the state fiscal year, which ends June 30. Ask ABC how that timing affects your first-year fee and your opening date. The current permit fee for this license is not in our verified sources, so get it from ABC. ABC processing times are also not in our verified sources, so ask for current estimates before you set an opening date.

Step 6: Register with DFA for sales tax and withholding

Any business selling tangible personal property or taxable services must hold a sales and use tax permit from DFA. The permit costs $50 and you apply through the Arkansas Taxpayer Access Point. The state sales tax rate is 6.5 percent. A taproom selling beer, food and merchandise will have taxable sales, so confirm with DFA which items are taxed and how to file. If you will have employees, register for withholding in the same portal.

Your income tax position depends on your entity type. Arkansas corporate income tax is graduated, and personal income tax has a top rate of 3.7 percent for tax years beginning on or after January 1, 2026. Ask your CPA how your LLC or corporation will be taxed.

Step 7: Clear the Department of Health for your kitchen

If you serve food, the Arkansas Department of Health licenses food establishments. Talk to the department before you finalize the kitchen layout, sinks, food storage and equipment. Confirm the application steps, required documents and any fees with the department directly. Retrofitting a kitchen after construction is expensive.

Step 8: Register for unemployment insurance before you hire

Register with the Arkansas Division of Reemployment before you pay your first employee. Confirm your other employer obligations with the agency and your insurance agent, including workers' compensation coverage.

Step 9: Insure the business and plan production

Get quotes for general liability, property and liquor liability coverage before you sign a lease. Insurers will ask about your production volume, your taproom hours and your food service, so your forecast from Step 5 is useful here too. Once you are brewing, keep a batch and barrel log so you can show that you stay under the 5,000 barrel wholesale authority and the 45,000 barrel caps.

Tips and Common Mistakes to Avoid

• Treating the $750 as your standard fee. The $750 figure in this guide applies to the dry area private club permit. Confirm the standard microbrewery-restaurant permit fee with ABC.
• Signing a lease first. Confirm zoning, wet or dry status and city licensing in writing before you commit.
• Brewing before the TTB notice is in place. Production for sale should wait until your federal approval is complete.
• Using a P.O. Box for your registered agent. The filing will be returned. Use a street address where the agent is located.
• Missing the May 1 franchise tax report. A late filing adds a $25 penalty plus interest, and the penalty compounds your administrative work.
• Assuming a name is protected. Secretary of State name issuance does not grant exclusive rights. Run a separate trademark search before you print labels.
• Ignoring the city layer. Counties issue no general business license, but your city may require one. Check before opening day.
• Planning volume without the caps. Forecast barrels against the 5,000 barrel wholesale authority and the 45,000 barrel caps before you commit to distribution.
• Making health or nutrition claims. Keep marketing and menus free of health claims. Alcohol labeling and advertising fall under federal TTB rules, and food claims on a brewpub menu may draw attention from FDA.

Expected Results and Timeline

Results vary widely by location, concept and capital. We cannot promise sales volume, profit or approval dates, and you should not rely on any projection that a vendor or consultant gives you without checking its assumptions. Entity formation can move quickly. The Secretary of State says most filings are completed within two business days of receipt. Federal approval, state licensing and local permits usually take longer and run in parallel, so start them early.

Many founders find the lease, the build-out and the permits take more time than the brewing itself. Budget for delays, and use your ABC and local timelines, once confirmed, to set your opening date.

Official Resources

• Arkansas Secretary of State, Business and Commercial Services Division: https://www.sos.arkansas.gov/business-commercial-services-bcs/
• Corporations Online Filing System: https://www.ark.org/sos/corpfilings/index.php
• Arkansas Department of Finance and Administration: https://www.dfa.arkansas.gov/
• Sales and use tax account registration: sales and use tax registration
• Arkansas Small Business and Technology Development Center: https://asbtdc.org/
• U.S. Small Business Administration, Arkansas district: https://www.sba.gov/district/arkansas

Important Disclaimer

This article is informational content, not legal or tax advice. Licensing rules, fees and deadlines change, and some figures above must be confirmed with the named agency before you rely on them. Before you form your entity, sign a lease, apply for federal or state approval, or make tax decisions, consult a qualified Arkansas attorney and a CPA. A brewery business involves federal, state, and local rules at once, and a professional who knows your facts can save you costly rework.