Do You Need a Sellers Permit in Arkansas?

A seller’s permit is required if you want to sell physical things in the state of Arkansas. Any company selling items that are subject to sales tax must have a seller’s permit, commonly known as a sales tax permit or a sales and use tax permit. You are permitted to gather and send sales tax to the state of Arkansas using this permit.

You must submit an application to the Arkansas Department of Finance and Administration in order to obtain a seller’s permit in Arkansas. You have two options for applying: online or on paper. The application will ask for details regarding your company, such as the name, address, and tax ID number.

You must start collecting sales tax on all taxable sales made in Arkansas once you receive your seller’s permit. With additional local taxes in some locations, Arkansas’s current sales tax rate is 6.5%. Regularly, usually monthly or quarterly, you must report and send sales tax to the state.

In Arkansas, establishing a sole proprietorship is not too difficult. You must select a company name and register it with the Secretary of State of Arkansas. Depending on the kind of business you intend to run, you might also need to secure any required business licenses or permissions.

You must fill out a Business Name Reservation form and submit it to the Arkansas Secretary of State in order to register your business name. You can submit your Articles of Organization and pay the filing fee to formally register your sole proprietorship after your name has been authorized.

Corporations and other types of business entities that conduct business in Arkansas are subject to the Arkansas franchise tax. The annual tax is dependent on the capital stock or net worth of the company. The Arkansas Secretary of State’s Office is in charge of collecting the tax.

You must submit Articles of Dissolution to the Arkansas Secretary of State in order to dissolve an LLC there. A declaration stating that all of the LLC’s debts and obligations have been settled or discharged must be included in the Articles of Dissolution, which must be signed by the majority of the LLC’s members.

Arkansas may impose fines and interest on the unpaid tax if you don’t pay your franchise tax. The charter or certificate granting your company permission to conduct business in Arkansas may also be revoked by the state. To avoid these fines and keep your good standing with the state, it’s critical to file and pay your franchise tax on time.