Arkansas is known for its rivers, mountains, diamond quarry, and the Razorbacks. While this smaller, rural state may be attractive to start a business, you need to know all the ins and outs of state regulations before you start. The place to begin is by selecting a business name.
Arkansas, like every state, won’t let you create a business with any name. It must be a unique name that meets the state’s approval. You must determine a name’s availability by doing a name search. We have all you need to know to do a business name search and offer other tips that will help you get your LLC off and running in Arkansas.
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How to check business name availability in Arkansas
Any business name you pick must be distinguishable from other businesses in the state. That means you will need to do a name search to see what’s available in Arkansas. Here is how to do it.
1. Go to the Arkansas Secretary of State site
The site has an entity search page that you can use to check name availability. It has a search tool that is easy to use.
2. Choose the type of business for the search
The corporation bar allows you to scroll down and pick the type of corporation you want to search under. You can choose from at least 30 types of domestic and foreign corporations.
3. Enter a business name
Use the name bar to enter a possible business name. You don’t have to enter the rest of the boxes but it may be helpful to put Arkansas in the state line.
4. Hit search
The website will show you a list of names that are exactly like the name you picked or similar. This is helpful for you to know so you can pick a distinguishable name. You may have to do this a few times to get an available name that suits your business.
5. Consider reserving a name
After running an Arkansas business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Arkansas allows business owners to reserve a name for 120 days for $22.50. You can file online or through a paper form.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Arkansas but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
6. Check domain name availability
We created a tool that makes it easy.
How to name your Arkansas business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Arkansas company?
As you research available business names in Arkansas, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Arkansas business
Ready to set up your business in AR? Here’s what you do:
1. File your Articles of Organization
Visit the Arkansas Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Arkansas, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Arkansas, the cost is $45.
4. Wait for approval
Arkansas will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Arkansas small business facts
You may think you’re ready to pick a name for your Arkansas business but you should first take a peek at some of these state statistics from the U.S. Business Administration:
- Arkansas has 255,004 small businesses and that makes up 99.3 percent of all the state’s small businesses.
- There are 490,680 employees that work at small businesses, making up 47.6 percent of all of Arkansas’ employees.
- Numbers from 2020 show the unemployment rate to be 10.2 percent. That is an increase from 2019 when the rate was 3.5 percent. The 2020 number was still below the national average of 14.7 percent.
- Companies with less than 20 employees make up the biggest chunk of small business employment.
- Top industries in Arkansas include healthcare and social services, accommodations and food services, construction, retail and manufacturing.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Arkansas:
Why is it so important to check on business name availability?
Arkansas will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
What else do I need to do to start a business in Arkansas?
There are many elements to starting a business in Arkansas but some of the legal steps you will need to follow after you file for Articles of Organization include applying for Arkansas licenses and permits as determined by your industry, getting an employment identification number, picking a location, check for zoning requirements, obtain liability and loss insurance and file and report taxes.
Once you’ve completed these basic legal requirements, you can start seriously planning to open your business in Arkansas. There could be a series of other documents you will need to file depending on which city you settle in. Check with local municipalities for a list of their requirements.
Does Arkansas always require a business license?
The State of Arkansas requires both businesses and those in occupations to have business licenses and permits to sell goods or perform services. The state even technically requires permits for part-time lawn mowing services, which could affect teens trying to earn some summer money.
Is Arkansas a business-friendly state?
There are varying opinions on how business-friendly the State of Arkansas is for new businesses. Some state its licensing and permitting requirements are too harsh and barr entry into entrepreneurship. CNBC ranks Arkansas 43 out of all the states in its business-friendliness.
However, the Arkansas Economic Development Commission and several other entrepreneurial groups state Arkansas is a great place to start a business. It was a top destination for business startups in 2018.
Do I need to register my business in Arkansas to do business there?
Those who have businesses located within the State of Arkansas are required to register for at least one tax-specific identification number, as well as income tax withholding, sales and use tax, unemployment insurance tax, and licenses and permits. You can have more than one tax identification number depending on your business requirements.
Does Arkansas have financing options for businesses?
Arkansas has lots of information about various forms of financing. Whether or not you get money to start your business largely depends on your business, your situation, and what’s available. The Arkansas Secretary of State’s office is always a good place to find links to possible financing.
Two programs are currently available through the Arkansas Development Finance Authority. One is for the construction of affordable housing and the other is to finance expansion and development within the state.
Arkansas offers some grants for those in particular industries, even though the U.S. government does not provide grants. Grants are monies that do not have to be paid back. Those in farming can also apply for small business grants. Arkansas has more than 49,000 farms.
Other grants are given by the state to either start or expand their business but those are limited in number and scope.
What are some of the permits I will be required to get?
Every business is different and the type of permits you are required to get in Arkansas can vary. Some of them include a building permit, a health permit, an occupational permit, an alarm permit, a signage permit, and a zoning permit.
Permit requirements can vary from city to city within the state. They can also be different in county rural areas from cities. Be sure to check with local municipalities on what all is required before you start putting out money to start your business.
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