How to Start a Plumbing Business in Arkansas: Health Department License, $200 Master and $75 Journeyman, December 31 Expiry

If you want to run a plumbing business in Arkansas, your first gate is not the Secretary of State. It is the Arkansas Department of Health. Plumbers are licensed by the Department of Health's Plumbing and Natural Gas Program, which works with the State Committee of Plumbing Examiners. Plumbers are not licensed by the Department of Labor and Licensing. Under the current rules, effective September 5, 2024 (A.C.A. 17-38-101 et seq.), a master plumber license carries a $200 annual fee and a journeyman license carries a $75 annual fee. Both licenses expire on December 31.

This guide follows the order we recommend: sort out your plumbing license first, then form the business entity, then register for taxes and any city license. Some owners form the LLC first, and that works too. The license is the piece that decides whether you can legally do the work, though, so it gets the first look.

Arkansas Plumbing License Fees at a Glance

These are the figures the Department of Health sets for the plumbing license. Exam fees are separate, and you should confirm their current amounts with the department.

Item	Master Plumber	Journeyman Plumber
Application fee	$125	$75
Annual license fee	$200	$75
Exam retake	$50 per retake	$50 per retake
Reinstating an expired license	$325, plus back fees	$150, plus back fees
Experience required	5 years, or equivalent	4 years, or equivalent

Apprentices who work under a licensed plumber register separately for $25 a year.

What You Need Before You Start

• Documented plumbing experience. A master license requires 5 years of experience, and a journeyman license requires 4 years, or the equivalent. Ask the Department of Health what counts as equivalent before you assume your history qualifies.
• Employer or project records. Gather dates, employers, job types, and supervisor contact information. Vague records are the most common reason applications stall.
• Personal identification and the application checklist. Pull the current application from the Department of Health and build a checklist from it. Do not work from an old copy.
• Your budget. Set aside money for the application fee, the exam, the annual fee, and possible retakes.
• A business name. Search the name on the Secretary of State's business search at https://sos-corp-search.ark.org/corps before you commit to it.
• An Arkansas registered agent address. This must be a street address where the agent is physically located. A P.O. Box will not work.
• A federal Employer Identification Number (EIN) from the IRS, which you will need for tax registrations.
• Insurance quotes. Ask an insurance agent about general liability coverage and workers' compensation for your planned employees. Requirements depend on your situation, so confirm them with your agent.

Step 1: Choose Between Master and Journeyman

The master license is the one most owners want, because it is the license that lets you run the operation. Be realistic about your timeline, though. A master license requires 5 years of experience and a master exam. A journeyman license requires 4 years and a journeyman exam. If you have 4 years of documented work and no master-level track record, you may start with the journeyman license and plan to upgrade later.

Before you decide, confirm with the Department of Health what each license allows you to do, including whether you can pull permits, supervise apprentices, and sign off on work. Those scope questions matter more to a business plan than the fee difference does.

Step 2: Assemble Your Experience Documentation

Build a single file with one page per employer. On each page, list the employer name, your job title, start and end dates, the types of plumbing work you performed, and a contact who can verify the work. Include licensed supervisors if they are available. Keep copies of anything that proves dates, such as pay stubs or letters on company letterhead.

If you hold a license from another state, ask the Department of Health about Act 457 of 2023. That act provides automatic licensure for qualifying out-of-state licensees, who still pay the fee unless they qualify for an exemption.

Step 3: Submit Your Application and Pay the Application Fee

Submit the application through the Department of Health's Plumbing and Natural Gas Program. Search the department's website for the program page to get the current forms and submission methods. Pay the application fee: $125 for a master or $75 for a journeyman.

If your household income is low, Act 725 of 2021 waives initial fees for qualifying applicants. The waiver does not cover exam fees. Ask the department whether you qualify before you pay anything.

Step 4: Pass the Exam

Once your application is approved, you will sit for the exam for your license level. Confirm the exam schedule, test center, and exam fee with the Department of Health. A failed attempt can be retaken for $50 per retake, so study before you pay for the first attempt. Many applicants find the exam is a stronger test of code knowledge than of field experience, so review the current plumbing code the state adopts.

Step 5: Pay the Annual License Fee and Get Licensed

After you pass, pay the annual license fee: $200 for a master or $75 for a journeyman. Every plumbing license expires on December 31. Mark that date on your calendar the day you receive your license.

Renewal is due by February 1. If you renew late, a $5 monthly penalty applies. If your license lapses, reinstatement costs $325 for a master or $150 for a journeyman, plus back fees. Restricted licenses for gas fitting, water and sewer service-line installation, solar mechanics, and governmental or hospital maintenance carry their own fees and expire on June 30. Confirm those figures with the Department of Health if your work includes them.

Continuing education is required only for backflow technicians and for plumbing and gas inspectors, who must complete 8 hours a year. If you do only general plumbing work, the rules do not currently require continuing education for your license. Ask the department whether any homeowner exemption applies to your situation.

Step 6: Form Your Business Entity

Most plumbing owners form a limited liability company (LLC). The Arkansas filing is the Certificate of Organization for Limited Liability Company, Form LL-01. The filing fee is $45 online or $50 on paper, and you can file through the Corporations Online Filing System at https://sos-corpfilings.ark.org/ or by mail or in-person drop-off. The Secretary of State's new business page lists anticipated processing of 3 to 5 business days for all filings. The Business Services FAQ says in-person drop-offs currently carry a 48-hour turnaround. The Secretary of State does not publish an expedited service or expedite fee for business entity filings, so do not pay anyone who promises one from the state.

Your LLC must appoint a registered agent to accept legal papers and official notices. The agent's address must be a street address in Arkansas, and the agent must be located there. You can serve as your own registered agent if you have a qualifying Arkansas address, or you can hire a commercial registered agent. Changing the registered agent later is filed with the Secretary of State at no fee.

Step 7: Choose a Compliant Name and Reserve It If Needed

Your LLC name must contain "Limited Liability Company" or "Limited Company," or an accepted abbreviation such as L.L.C., L.C., LLC, or LC. Limited may be abbreviated as Ltd., and Company as Co. The Secretary of State's name rules include a separate set of terms for companies that perform professional services, so check which rules apply before you choose a name. The Secretary of State issues names that are distinguishable on its records, but issuing a name does not by itself give you an exclusive right to use it.

If you need time to file, you can reserve a name for 120 days for $22.50. Reservation is optional.

Step 8: Register for State Tax Accounts

Arkansas has no single general business license, and the Secretary of State does not issue business licenses. Tax registrations are handled separately:

• Withholding and sales tax accounts. Register through the Department of Finance and Administration's Arkansas Taxpayer Access Point (ATAP). Start at https://www.dfa.arkansas.gov/. Register for withholding as soon as you plan to pay employees.
• Sales and use tax permit. Any business that sells tangible personal property or taxable services must hold a sales and use tax permit, which costs $50 and is applied for through ATAP. The state sales tax rate is 6.5%. Plumbing labor and materials can be treated differently, so confirm with the Department of Finance and Administration whether your services are taxable before you assume you need the permit or that you do not.
• Unemployment insurance. Register with the Division of Reemployment once you hire your first employee.

If your LLC passes its income to your personal return, the Arkansas personal income tax applies to that income. The top rate is 3.7% for tax years beginning on or after January 1, 2026. How your LLC is taxed for federal purposes will shape the filing, so ask a CPA.

Step 9: Check City and Local Requirements

Arkansas has 75 counties and about 500 municipalities. Counties do not issue a general business license, but many cities do, and they use different bases. Little Rock and North Little Rock charge a base amount plus an employee-based amount. Bentonville runs a free registry. Conway does not require one. Check your city clerk's website before you start operating, and ask whether your plumbing work also needs a city permit or contractor registration.

Step 10: Handle Assumed Names Correctly

If your business will operate under a name other than the LLC's legal name, you must file a fictitious name. An LLC files with the Secretary of State for $22.50 online or $25.00 on paper. The Application for Fictitious Name is listed at https://www.sos.arkansas.gov/business-commercial-services-bcs/forms-fees/llc. A sole proprietor records the name with the county clerk, and the county sets that fee, so confirm the amount locally.

Step 11: Calendar Your Recurring Deadlines

Set these reminders on the day you form the business:

• Plumbing license: Expires December 31. Renew by February 1 to avoid the $5 monthly penalty.
• LLC annual franchise tax report: $150, due on or before May 1 each year. A late filing adds a $25 penalty plus interest.
• Restricted licenses, if you hold one: Expire June 30.

Estimated Startup Costs

The figures below are the state fees covered in this guide. They do not include exam fees, insurance, tools, vehicles, or marketing.

Cost	Amount	When
Master plumber application fee	$125	At application
Master plumber annual license fee	$200	Annually
Journeyman application fee	$75	At application
Journeyman annual license fee	$75	Annually
LLC Certificate of Organization (Form LL-01)	$45 online, $50 paper	One time
Name reservation (optional)	$22.50	For 120 days
Sales and use tax permit (if applicable)	$50	One time
LLC annual franchise tax report	$150	Annually by May 1

Common Mistakes to Avoid

• Looking for plumbing licensure at the Department of Labor and Licensing. Plumbing is licensed by the Department of Health.
• Treating the annual fee as your whole cost. Budget for application fees, exam fees, possible retakes, and the LLC filing.
• Using a P.O. Box as the registered agent address. An incomplete filing will be returned for correction.
• Missing the February 1 renewal deadline. The penalty adds up each month.
• Forgetting the May 1 franchise tax report. Late filings add a $25 penalty plus interest.
• Assuming a statewide business license exists. It does not, so check your city and the agencies that regulate your trade.
• Operating under a different name without filing. Use a fictitious name filing or the exact LLC name.
• Skipping the sales tax question. Ask the Department of Finance and Administration before you invoice your first customer.

Expected Results

Results vary with your experience records, how quickly you respond to agency questions, and how well you prepare for the exam. A well-documented application with the correct fees may move through review more smoothly, and the Secretary of State says it completes most filings within two business days of receipt. The Department of Health does not publish a processing timeline in the materials used for this guide, so ask the department for its current estimate before you schedule work that depends on the license. These are reasonable expectations, not guarantees.

When to Talk to a Professional

A business attorney can advise you on entity choice, operating agreements, and liability protection. A CPA can help you plan for federal and Arkansas income tax, sales tax treatment of your services, and payroll. An insurance agent can confirm the coverage your jobs and contracts require. If you plan to work on commercial projects or with contractors who hold separate licenses, ask the Department of Labor and Licensing's Contractors Licensing Board whether your work triggers any additional requirements.

For regulated trade questions, start with the Arkansas Department of Health. For business formation, the Secretary of State's Business and Commercial Services Division is at https://www.sos.arkansas.gov/business-commercial-services-bcs/. For free planning help, the Arkansas Small Business and Technology Development Center offers guidance at https://asbtdc.org/, and the SBA's Arkansas district office information is at https://www.sba.gov/district/arkansas.

Disclaimer: This article is informational content about starting a business in Arkansas. It is not legal, tax, or licensing advice. Fees, deadlines, and rules change, so confirm every figure with the agency that administers it before you file, pay, or rely on it. Consult a qualified attorney and a CPA for decisions about your business structure and taxes.