If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Arkansas, the first step is visiting the Department of Finance and Administration website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Arkansas?
Sales of tangible goods are subject to sales tax in Arkansas. Utilities, gasoline, and telecommunications services are also subject to sales tax. Machinery and equipment used in manufacturing are exempt from sales tax.
Arkansas Sales Tax Rate
The sales tax rate in Arkansas is 6.5%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Arkansas Sales Tax
In Arkansas, acquire a seller’s permit by following the Department of Finance and Administration’s detailed instructions for registration:
- Go to the Arkansas Taxpayer Access Point website.
- Register for an account.
- Fill out the registration for sales tax form.
- Pay the $50 fee.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Arkansas, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.