Starting a business in Arkansas is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax Permit in Arkansas, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Arkansas.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Who Needs a Seller’s Permit in Arkansas?
A business must register for a sales tax permit in Arkansas if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Arkansas
How to Register for a Seller’s Permit in Arkansas?
When applying for a sales tax permit in Arkansas, you can use the online application process on the Arkansas Department of Finance and Administration (DFA) website to complete your sales tax registration.1. Where to Apply for a Seller’s Permit in Arkansas?
The first step to register for a sales tax permit online is to go to Arkansas Taxpayer Access Point (ATAP) and click on “Register a Business” found in the “Businesses” section if you have a physical presence in the state and “Register a Remote Seller” if you are an out-of-state seller with no physical presence. For the purpose of this guide, we will focus on applying for a seller’s permit in Arkansas as an out-of-state/remote seller with no physical presence. At the beginning of the registration process, you will come across a question that says, “Are you a remote seller and/or marketplace facilitator?” Click the drop-down and answer “Yes” since you are registering as an out-of-state/remote seller with no physical presence. You will then follow through the prompts that walk you through your registration process and provide the necessary information.2. What Information Do You Need to Get a Seller’s Permit in Arkansas?
To successfully acquire a seller’s permit in Arkansas, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Arkansas:- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Arkansas?
Registering for a sales tax permit in Arkansas costs $50 for businesses with a physical presence in the state and free for out-of-state/remote sellers with no physical presence Arkansas sales tax permits do not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.4. What are Other Ways to Register for a Seller’s Permit in Arkansas?
- Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.
- Paper Application: You must fill out the AR-1R Combined Business Tax Registration form, attach the necessary documents, and mail it to the address provided in the form.