How to Register for a Sales Tax Permit in Arkansas

Whether you are looking to start a wholesale business buying and reselling merchandise in bulk or you have a regular job but you would like to earn a little something on the side, there are some legal requirements you have to familiarize yourself with, in order to run a successful and legal business.

Zoning rules mean you have to comply with zoning ordinances and regulations that define how you can use your property. These rules come into play on all properties, no matter the size. In the case of running a business from the comfort of your home, you still have to contact relevant regulatory authorities that will have to check and confirm your dedicated space complies with the regulations and whether you need to file for additional permits.

Registering a New Business in Arkansas

You have already decided what sort of products you are going to buy and sell. Now you have to register your business with the state of Arkansas. While there are different ways of registering your company, we will focus on two types you should look into.

Registering an LLC, a limited liability company is a popular way as it offers more protection. Even if you’d be your company’s only member, you can register it as an LLC, which would protect you from personal liability.

The second option you have is the simplest choice for a business structure, ‘Sole Proprietorship.’ This means you are running the business on your own and there is nothing you should file with the state. However, you are giving up on personal liability protection.

Registering for Sales Tax / Seller’s Permits

According to the Arkansas’ Department of Finance and Administration, “vendors located and operating in Arkansas must register under the Gross Receipts Tax Law if the vendor sells property or services subject to sales tax.”

This is something you should have a good look at as not all businesses have to collect tax but, there are several rules and exceptions, and depending on the type of products you intend to sell, you will have to apply for an Arkansas Sales Tax Permit accordingly. This means that first, you have to see whether the products or services your company is going to sell are taxable in Arkansas. For a complete list of taxable products and services visit the Arkansas Department of Finance and Administration website. In short, some of the taxable products are computers, home appliances, books, while goods considered necessities, such as medications, clothing or gasoline are not taxed.

If you find that the products you are going to sell are taxable in the state of Arkansas, you have to register for Sales Tax Permit, which is effectively a seller’s permit. To register for a seller’s permit in Arkansas, you need the SSN or ITIN number, business identification information, business entity type, nature of your business and the North American Industrial Classification System (NAICS) code required for all businesses. The cost of applying for a sales tax permit in Arkansas is $50 and you will receive your state tax permit within 8 to 10 days.

Unlike many other states, Arkansas does not issue a separate resale permit or certificate. This means your resale business needs to register in exactly the same way as any new business, simplifying the process.

There are links to most of the forms you will need here.

For more information, please contact:

Department of Finance and Administration
Sales and Use Tax Section
P. O. Box 1272
Little Rock, AR 72203-1272
Phone: (501) 682-7104 Fax: (501) 682-7904

While this article sheds some light on the legal basics of setting up an online resale business in Arkansas, we urge you to contact your authorities or get in touch with legal advisors who will be able to clarify the complexities of Arkansas laws and guidelines relating to online resale businesses in more detail. Helpfully, the State has provided a guide to setting up a new business, and what you need to do here.

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Henley Johnson

Henley currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Henley is here to help you grow your business.

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