Arkansas Small Business Annual Checklist
Important dates and tasks to remember.
We know that business owners have a lot on their plates, and it can seem overwhelming to keep up with all the important tasks and deadlines that come with owning a business. With all that in mind, we’ve compiled a checklist below that goes over important dates and tasks to help you stay on track. Some of these dates have passed, but if you're a business owner who has just started your business after the year had started, then this article can help you learn what to expect next year to help you plan.
Complete Initial BOI Reporting
A business’s BOI report is a report on the business owners (beneficial owners). Businesses formed on or after January 1, 2024, must complete this report. Businesses are given 90 days to file it after public notice of their company’s creation or registration becomes effective. The due date to file your business’s franchise tax in Arkansas is May 1st. This requirement didn’t go into effect until this year (January 1, 2024), so this will be a new task to remember for all businesses. In our corporate transparency act blog, we explained that the purpose of this report is to prevent individuals with malicious intent from participating in illegal operations and hiding them, preserving the economic integrity of businesses in the United States.
What is in a BOI report?
The information that will need to be provided for a business’ beneficial owners and business applicants is:
Full legal names
Date of birth
Current residential or business street address
An identifying number from an acceptable identification document such as a passport, driver’s license, or any other government-issued ID
Trademarks
Taxpayer identification number
Jurisdiction where the business was formed or registered
Who needs to file a BOI, and who doesn’t?
This report is mandatory for many corporations and LLCs in the US, both domestic and foreign, that have registered to do business in the US. There are some exceptions, though, and they are:
Securities reporting issuer
Governmental authority
Bank
Credit union
Bank or savings and loan holding company
Money transmitting business
Broker or dealer in securities
Securities exchange or clearing agency
Other Exchange Act registered entity
An investment company or investment adviser
Venture capital fund adviser
Insurance company
State-licensed insurance producer
Commodity Exchange Act registered entity
Accounting firm
Public utility
Financial market utility
Pooled investment vehicle
Tax-exempt entity
Entity assisting a tax-exempt entity
Large operating company
Subsidiary of certain exempt entities
Inactive entities
Entities that the Secretary of the Treasury has determined the information would not serve the public interest.
2. File and Pay for Franchise Tax
Businesses must file and pay the franchise tax to operate within the state they register. If your business is registered in multiple states, you must pay the franchise taxes for your business in each state. In Arkansas, these taxes are due on May 1st. The due date is not the same in every state, so if your business is registered in multiple states, be sure to look online to see when other state deadlines are!
Failure to pay these taxes on time annually can result in additional fees, penalties, interest, and even revocation of the authorization to do business, according to the Arkansas Secretary of State. These penalties will continue to stack, even for revoked businesses, until the business is dissolved, merged, or withdrawn.
For most businesses, filing and paying franchise taxes can be done online, making the process as simple as possible. For more information on fees and forms for your business, check out the Arkansas Secretary of State linked above!
3. Renew Your Business License
The frequency and process for renewing your business license depend on your city, so be sure to check your local requirements to determine what you need to do in your area. In Arkansas, there is no requirement for every business to obtain a business license on a state level. The only statewide license mandatory for most businesses in the state is the Arkansas Sales Tax permit (Seller’s permit), which registers a business for the Arkansas sales and use tax. Specific cities require you to have a general business license for the specific city or county where you intend to do business. Here are some of the rules for some major cities in Arkansas:
Little Rock, AR
All businesses within the city limits of Little Rock, Arkansas, must obtain a business license.
Fayetteville, AR
All businesses within the city limits of Fayetteville, Arkansas, must obtain a business license.
Jonesboro, AR
All businesses within the city limits of Jonesboro, Arkansas, must obtain a City of Jonesboro Privilege License.
Rogers, AR
All businesses within the city limits of Rogers, Arkansas, must have a business license.
Hot Springs, AR
All businesses within the city limits of Hot Springs, Arkansas, must obtain an occupation tax permit.
Fort Smith, AR
All businesses within the city limits of Fort Smith, Arkansas, must obtain a business license.
Conway, AR
Conway, Arkansas, does not require a business license. The City Clerk’s Office can help with the process of starting a business.
Be sure to check with your specific city to see what license requirements are needed for your business! For more information on business licenses in Arkansas, check out this Forbes article called How To Get A Business License In Arkansas (2024).
4. Does your Business Require other Licenses to Operate?
Something you should also be mindful of is that your business may need additional licenses depending on what type of business it is and what goods and services it provides. For instance, if you run a small restaurant and want to sell alcohol, you will need a permit that states your business is allowed to sell alcohol, and this can only be obtained through attending an educational seminar from the Alcoholic Beverage Control Division and paying special fees.
Here are a few examples of some special permits businesses in Arkansas need to acquire depending on the services and products they offer, according to the Arkansas Small Business and Technology Development Center (ASBTDC):
Restaurant and Food Services
This license is required for any business working in food services, which includes restaurants, food trucks, caterers, convenience stores, bed and breakfasts, and home-based businesses. The Arkansas Department of Health requires this license and involves having kitchen plans approved before the business is established and having an on-site inspector look over food preparation facilities.
Permit to Serve Alcohol.
As stated before, the ABC requires businesses that intend to serve alcohol to attend a four-hour educational seminar (which they host twice a month) before they can issue a permit. On top of that, the permit fees cost between $40-$1,000 plus a federal occupational tax, which is approximately $250.
Permit to Sell Cigarettes, Tobacco, Amusement, and Vending Machines
This permit is required by the Arkansas Department of Finance and Administration Miscellaneous Tax Section.
Contractor Licenses
This is required by the Arkansas Contractors Licensing Board for businesses that intend to do commercial or residential construction or home remodeling and/or improvement.
Occupational Licenses
There are a variety of specific occupational Licenses that the Arkansas Department of Workforce Services requires certain businesses to obtain.
Childcare license
The Arkansas Department of Human Services requires this for businesses that intend to offer child care as one of their services.
Renew and complete professional licensing requirements as required
Obtaining these licenses for your business is one thing, but maintaining them is another. Some of these renewal processes just involve paying the fees, but others may need assessments and applications done to make sure businesses are maintaining specific regulations and rules that are set for the different licenses. Most of the licenses have a renewal deadline of June 30th to be considered on time, but be sure to check the requirements for your specific license, just in case! Here are some set due date periods for specific licenses:
Permit to Serve Alcohol
All permits issued by the ABC are renewable between July 1st and June 30th of each fiscal year. Any renewal done after June 30th will result in a late renewal penalty, and late renewals will be allowed until October 28th each fiscal year.
Permit to Sell Cigarettes/Tobacco products
Permits expire on June 30th of each year, and renewal applications must be submitted before this date to be considered timely. Businesses have 60 days after that to submit a new application and pay late fees to receive a renewal. If the 60 days pass, businesses will not be allowed to continue selling tobacco products until a renewal is set and late fees are paid.
Contractor Licenses
These license expiration dates are determined by when they were issued and are renewed annually on that day. The renewal application and fees can be filed online and must be completed before the license expires. Any renewal not completed by the license's expiration date will be required to pay an additional $50 late fee.
Childcare license (Care Facility)
An annual license fee is issued based on the maximum license capacity of all licenses located within the same premises. The rates are as follows:
1-17 children- $15 per year
17-99 children- $50 per year
100+ children- $100 per year
A notice will be sent to inform businesses that it’s time to renew their licenses. If the renewal fees haven't been paid after 20 days, another notice will be sent. After another 20 days, if the fees are still not paid, the childcare license will be suspended pending payment of the license renewal fee.
5. Pay Federal, State, Sales & Use Taxes
Taxes are due on April 15th each year, meaning this year's deadline has already passed. If your business started after that date, though, and if you sometimes find yourself in a time crunch when the time comes next year, you can always file for an extension by filling out Form 7004.
6. Payroll Taxes
Businesses must obtain an Employer Identification Number (EIN) to open a business and file state withholding taxes and employee payroll. The IRS can assign you either a monthly or semiweekly schedule for payroll taxes, but you only have to report taxes quarterly.
There are three main classifications for businesses that affect taxes we want to discuss. They are:
S-Corp
An S-Corp is a business that elects to “pass through taxable income, losses, deductions, and credits to company shareholders”. This type of company is popular because it appeals to small businesses and offers tempting tax benefits. S-Corps file taxes annually. S-Corps use an IRS Form 1120-S for taxes. These forms are due two months after the tax year ends, which is usually March 15th.
C-Corp
A C-Corp is a business where the owner's assets are separate from the business’s assets. C-Corps, unlike S-Corps, are subject to double taxation that S-Corps can avoid due to their pass-through nature. C-Corps file taxes quarterly. C-Corps file an IRS Form 1120 for taxes, and these are usually due on the 15th day of the 4th month after the end of your tax year.
LLC
An LLC can file as either an S-Corp, C-Corp, or a sole proprietor. This allows LLCs to have lower taxation rates by filing under a specific type while keeping the LLC structure.
For more information on these structures and the tax structure, check out these articles:
Seeing as how the process can be a little complicated in Arkansas, we recommend businesses use online tools to help streamline the payroll tax process so that it’s easier to track, file, and pay payroll and withholding taxes. Here are some online tools your business can use:
7. Review and Adjust Insurance as Needed (liability, property, professional, workers’ comp, etc.)
It is best to review your business's insurance policies annually and make adjustments as needed for what is best for your business and its employees.
8. Commercial personal property assessment and taxes
Your commercial personal property is every item used for the production of income for your business. This can range from the goods your business sells, the office equipment your business uses, and the building itself that your business is in. While the due date for assessments is on May 31st, the commercial personal property taxes aren’t due until October 31st, so be sure to mark that date!
As you’ve just read, businesses have many tasks, due dates, and assessments, and every business’s checklist will look slightly different depending on what it sells, provides, where it is based, and so on. For help figuring out what your business’s checklist for the year will look like and how to get everything organized so you can keep up with it all, feel free to contact Comprehensive Consulting Solutions for Small Businesses at (479) 935-2488 or go to our website for a free consultation. We’d love to help your small business!
For more information on the important steps to starting and maintaining your business, check out these other articles from CCS:
