Sole Proprietorship Registration in Arkansas

By Jeff Franco J.D./M.A./M.B.A.

If you plan on starting a business in Arkansas, choosing to operate as a sole proprietorship is the quickest way to get your business off the ground. This is because Arkansas doesn’t impose the same level of registration requirements on sole proprietorships that it does on other business entities, such as corporations and limited liability companies.

Arkansas Sole Proprietorships

The great thing about starting a business as a sole proprietor in Arkansas is that you can start operations whenever you want without having to file documents or pay fees to the Arkansas Secretary of State. However, a significant disadvantage to this is that Arkansas doesn’t recognize a sole proprietorship as a separate entity, meaning that you’re personally liable for all debts and obligations of the business. In contrast, the owners of an Arkansas corporation must file articles of incorporation with the state, but after doing so, they aren’t personally liable for the debts of the corporation, as a corporation is an entity that is separate and distinct from its owners.

Business Name Registration

When operating an Arkansas sole proprietorship, state law only allows you to conduct business in your own name. However, if you prefer to conduct business using an assumed name, commonly referred to as a DBA, you must file a “Doing Business Under an Assumed Name” certificate in the county clerk’s office of each county where you will transact business. The certificate is a simple one-page form that you must fill out and sign in the presence of a notary before filing it with the county clerk and paying the $25 fee. To illustrate, if John Smith starts an accounting business as a sole proprietor, he can only refer to his business as “John Smith.” However, if he prefers to name the business, “Smith Accounting Consultants,” he can only do so after filing a DBA certificate in each county where he intends to practice.

Ready to start your LLC? Start an LLC Online Now

Arkansas Business Licenses

Despite the fact that sole proprietors don’t register their businesses, depending on the type of business you operate and the city or county where it operates, you may need to file applications for business licenses. The city of Fayetteville, for example, requires all sole proprietors that have a place of business within city limits to obtain a business license, which always requires the payment of a fee. There are a number of exemptions to this requirement, none of which apply to sole proprietors unless they are under the age of 18. Keep in mind, however, that not every city and county requires you to obtain a business license, so you will need to check with your local city or county government office.

Tax Filings

Although not technically a registration requirement, you will need to file tax returns that report your sole proprietorship income to the state and federal government. You can use the same net income you report on a Schedule C attachment to your federal return for Arkansas state income tax purposes.

Ready to start your LLC? Start an LLC Online Now
Forms and Fees for Registering a Sole Proprietorship in Mississippi


Related articles

How do I Change the Ownership of an LLC in Arkansas?

Arkansas law regulates the creation and maintenance of limited liability companies, or LLCs, organized in Arkansas. All LLC’s that conduct extensive business within Arkansas must register with the Arkansas Secretary of State by filing an Articles of Organization. Changes in the ownership structure of an LLC do not need to be filed with the Arkansas Secretary of State. However, if the change in ownership structure of an LLC affects the management of an LLC, the changes in the management structure must be noted in the annual franchise tax report to the Arkansas Secretary of State.

How to Set Up a DBA in Galveston County, Texas

Businesses operating with a name which contains any words except the true legal name of the owner are usually required to file a DBA -- “doing business as” -- statement in Texas. These statements are also referred to as “fictitious business name statements” or, as is the case in Texas, “assumed business name statements.” The Texas Business and Commerce Code section 71.002 (2) contains the exclusion criteria for an assumed name.

DBA as a Sole Proprietorship in Massachusetts

Naming a business is often a very important step from a branding perspective. In Massachusetts, business registrations are typically handled by the Secretary of the Commonwealth. For owners that choose to structure their business as a sole proprietorship, the name of the company defaults to the name of the owner. In some cases, however, this may not be a desirable option. In such cases, a new fictitious business name must be registered locally before the company can operate. The procedure involves the completion and filing of a certificate containing the addresses and names of the business and owner as well as the payment of a filing fee. The fictitious name will then be included on all government forms and tax filings as well as any applicable licenses and permits.

LLCs, Corporations, Patents, Attorney Help

Related articles

How to Create a Sole Proprietorship in South Carolina

If you are starting a business in South Carolina and want to operate it as a sole proprietorship, it isn’t necessary to ...

Sole Proprietorship in Kansas

When you’re the sole owner of a business in Kansas and don’t create a legal entity for it, state law designates it as a ...

Do You Need a DBA for Sole Proprietorship?

A sole proprietor can work under her own name or operate under a catchy business nickname. A DBA, which stands for ...

How to File a DBA on Your Own in Iowa

When you operate a business under any name besides the registered name or your own name if you are a sole proprietor, ...

Browse by category
Ready to Begin? GET STARTED