How to Start a Real Estate Business in Arkansas: Broker License, 24 of 48 Months as Salesperson, $70 Original and $80 Renewal

If you want to run your own brokerage in Arkansas, the credential you need is the Arkansas real estate broker license. The Arkansas Real Estate Commission issues it, and the Commission sits within the Department of Labor and Licensing. Most brokers begin with an Arkansas real estate license as a salesperson, then build the experience and education needed to upgrade. This guide covers the eligibility rules, the state fees, the exam and application steps, and the business registrations you will need once the license is in hand.

Disclaimer: This article is informational content, not legal or tax advice. Requirements, fees, and deadlines change. Confirm current figures with the agencies named below before you spend money or file anything.

Materials and Information You Need Before You Start

Gather these items before you begin. Having them ready prevents the most common delays.

• Your salesperson license history, with dates showing that you held a salesperson license for at least 24 of the preceding 48 months
• Completed education certificates for 60 classroom hours, including the 45 hours in the Commission course
• A payment method for the $50 application fee, the $70 original broker license fee, and the $25 Recovery Fund fee
• A budget for the broker exam, which is billed at the testing service's actual cost, with a statutory cap of $75
• If you plan to operate through an LLC: the Certificate of Organization (Form LL-01), a $45 online filing fee ($50 on paper), and an Arkansas street address for your registered agent
• A calendar entry for your renewal date, with a budget for the $80 annual broker renewal and seven hours of continuing education each year

Step 1: Confirm You Meet the Experience Requirement

To qualify for a broker license, you must have held a salesperson license for at least 24 of the preceding 48 months. The 24 months do not have to be consecutive, but they must fall within the 48 months immediately before your application. Pull your license history from the Commission and count the months yourself before you commit money to classes.

The Commission may waive the experience requirement in some cases under A.C.A. 17-42-303(b). Do not assume you qualify for a waiver. If you want to request one, ask the Commission in writing and wait for an answer before you enroll in courses or book the exam.

Step 2: Complete the Required Broker Education

Arkansas law sets a higher ceiling than the rule you will actually follow. The statute allows up to 120 hours of broker education, with 45 hours in a Commission course, and up to 90 hours of salesperson education. Regulation 4.1, however, sets the classroom requirement at 60 hours for both license types. Under Regulation 4.1, 45 of the broker hours must come from the Commission course.

Because the statute and the regulation differ, ask the Commission to confirm the current hour count before you enroll. Also confirm the course provider and course name with the Commission. Tuition varies by provider, so compare several quotes. Be cautious of any school that quotes a different hour requirement without citing the Commission.

Step 3: Schedule and Pass the Broker Exam

The exam fee is the actual cost charged by the testing service, and state law caps it at $75. Because the testing service sets the price, the Commission's fee schedule does not give you a fixed exam number. Check the current price, the scheduling process, and any retake policy with the Commission and the testing service before you book.

Study Arkansas-specific material, not only national real estate content. Arkansas law and Commission rules shape how brokers handle trust funds, agency relationships, and disclosures, and the exam reflects that. Confirm with the Commission whether your application must be filed before you test or after you pass, because the order determines when you pay the application fee.

Step 4: File the Application and Pay the State Fees

Under Regulation 3.1, the state fees for a new broker license and the recurring renewal are listed below. Confirm each amount on the Commission's current fee schedule before you pay.

Item	Fee
Application	$50
Original broker license	$70
Recovery Fund	$25
Broker exam (actual testing service cost, statutory cap $75)	Varies, capped at $75
Annual broker renewal	$80

Based on the listed fees, the three state charges for a new broker license total up to $145 before the exam and before any course tuition. Under Regulation 3.1, a successful applicant pays the license fee and Recovery Fund fee within 90 days of passing the exam, or the exam results become void, and the Recovery Fund fee is waived for an applicant who has previously paid it. The same schedule lists an original salesperson license at $50 and an annual salesperson renewal at $60, which matters if you still hold a salesperson license while you work toward the broker upgrade.

Step 5: Decide How to Structure Your Brokerage

You can operate under your own name or through a business entity. Whether to form an entity is a decision to make with an attorney or CPA, because it affects liability, taxes, and how your brokerage is named and registered. Confirm with the Commission whether any name or registration rules apply to a brokerage before you choose a name.

If you form an LLC, the Arkansas Secretary of State handles the filing. The key facts are:

• Formation document: Certificate of Organization for Limited Liability Company (Form LL-01), with a $45 online filing fee ($50 on paper).
• Name: The name must include Limited Liability Company or Limited Company, or the abbreviation L.L.C., L.C., LLC, or LC. Limited may be abbreviated as Ltd. and Company as Co. A company performing a professional service must use a professional designation instead, such as PLLC, so confirm which applies to your brokerage. Issuance of a name does not by itself give you an exclusive right to use it, so search the Secretary of State's business database before you file.
• Processing time: The Secretary of State's Business Services FAQ says most filings are completed within two business days of receipt. In-person drop-offs carry a 48 hour turnaround.
• Expedited service: The Secretary of State does not publish an expedited filing service or expedite fee for business entity filings.
• Name reservation: A name reservation costs $22.50 online ($25 on paper) and lasts 120 days.

Arkansas uses the term registered agent. Your registered agent must accept service of process and official notices. 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 serve as your own agent or hire a commercial registered agent, which must be registered with the Secretary of State. Changing your registered agent is filed at no fee.

Step 6: Register for Taxes and Employer Accounts

Your tax registrations depend on how you pay yourself and your agents, and on what you sell. The Arkansas Department of Finance and Administration (DFA) handles most of them through the Arkansas Taxpayer Access Point (ATAP). Check each item with the agency before you assume it applies:

• Sales and use tax: Any business selling tangible personal property or taxable services must obtain a sales and use tax permit, which costs $50 and is applied for through ATAP. Most brokerages earn commissions rather than sell taxable goods, but confirm this with DFA if any of your revenue could be taxable.
• Withholding: If you pay employees wages subject to Arkansas withholding, register with DFA through ATAP. Ask whether your agents will be employees or independent contractors, since the classification changes which registrations you need.
• Unemployment insurance: If you hire employees, register with the Division of Reemployment. Confirm your obligations with that division.
• Income tax: The personal income tax top rate is 3.7% for tax years beginning on or after January 1, 2026. The corporate income tax is graduated, reaching 4.3% on net income over $11,000 for tax years beginning on or after January 1, 2024.

Start with the DFA website at https://www.dfa.arkansas.gov/ and ask a CPA to confirm which accounts apply to your structure.

Step 7: Check City Business Licenses

Arkansas has no general state business license and no county business license, and the Secretary of State does not issue business licenses. Cities do, and their rules differ widely. Little Rock and North Little Rock charge a business license based on a base amount plus employees. Bentonville runs a free registry. Conway does not impose a city business license. These examples are not a guide to your city, so contact your city clerk to confirm what applies to your office location, and check whether the city requires a separate registration for your brokerage.

Some business activities also need a license from a state agency or board, but a real estate brokerage is licensed through the Commission, not through a separate general license.

Step 8: Renew Your License and Complete Continuing Education

Your broker license renews annually at $80. Each year you must complete seven classroom hours of continuing education, and one of those hours must cover personal safety. Set reminders well before the renewal date, and keep your course certificates in a folder you can produce if the Commission asks for them.

Common Mistakes to Avoid

• Relying on the statute's hour count. The statute allows up to 120 broker hours, but Regulation 4.1 sets 60 classroom hours. Confirm the current requirement with the Commission before you enroll.
• Miscounting your salesperson months. You need at least 24 of the preceding 48 months. Count from your license history, not from memory.
• Assuming a waiver. The Commission may waive the experience requirement in some cases, but it is not guaranteed. Get the answer in writing first.
• Paying for the exam without checking the price. The exam fee is the testing service's actual cost, capped at $75 by statute. Confirm the current charge before you book.
• Using a P.O. Box for your registered agent. An incomplete filing will be returned, which delays your entity.
• Missing the LLC annual report. The $150 Annual LLC Franchise Tax Report is due May 1 each year. A late filing adds a $25 penalty plus interest.
• Practicing before you are licensed. Unlicensed real estate activity is unlawful. It carries a civil penalty of up to $5,000 plus costs under 17-42-109, and the license law also makes it a Class D felony under 17-42-105.
• Skipping the city check. A business license that you never applied for can create problems even when your state license is in order.

What Results to Expect

Once licensed, a broker may be able to open a brokerage and supervise salespeople, but the exact scope of that authority comes from the Arkansas Code and Commission rules, so confirm it before you hire anyone. Timelines depend on exam scheduling, the Commission's processing, and Secretary of State review. Your results will vary with your local market, your experience, and your business model. Nothing in this guide promises any particular income, closing volume, or time to profitability.

Your Next Steps

1. Pull your salesperson license history and confirm the 24 of 48 month count.
2. Ask the Commission in writing to confirm the current education hour count and any waiver process.
3. Enroll in a Commission course and complete the 60 classroom hours.
4. Confirm the exam price, schedule the exam, and study Arkansas-specific material.
5. Confirm the filing order, then submit the $50 application, $70 original broker fee, and $25 Recovery Fund payment.
6. Decide with an attorney or CPA whether to operate through an LLC, then file Form LL-01 with the Secretary of State.
7. Register your registered agent, tax accounts, and any city license that applies.
8. Calendar your $80 annual renewal, seven hours of continuing education, and your May 1 LLC annual report if applicable.

Disclaimer: This article is informational content, not legal or tax advice. Consult a qualified Arkansas real estate attorney and a CPA before forming a brokerage entity, hiring agents, or structuring your income. Confirm current requirements and fees with the Arkansas Real Estate Commission, the Arkansas Secretary of State, and the Arkansas Department of Finance and Administration.