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How to Start a Business in Paragould

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Resource Guide How to Start a Business in Paragould August 2022

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Licensing Your Business Privilege License New businesses should contact the City Inspector’s office to ensure compliance with the zoning laws before applying for a privilege license. Any person or entity doing business within the City limits of Paragould must have a privilege license. If your business requires a State Certification such as food trucks, etc. a copy of your state certification should be submitted with your application. If you have inventory, a Statement of Inventory should be submitted with your application. To apply for a privilege license, bring the privilege license application along with any other required documents to the City Clerk's office. There may be additional licenses and fee required, depending on the type of business. Paragould City Clerk 301 W Court Street Paragould, AR 72450 (870) 239-7500 Restaurants/Food Handling Businesses Restaurants and any food handling businesses must be approved by the Arkansas Department of Health. Greene County Health Unit 801 Goldsmith Road Paragould, AR 72450 (870) 236-7782 For new establishments, a plan review is required by the Division of Environmental Health Protection, Food Protection Services. Information can be obtained at the local health department or contact: Arkansas Health Department Division of Environmental Health Protection 4815 W Markham Little Rock, AR 72205 (501) 661-2171

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License to Sell Liquor Application must be made to: Alcoholic Beverage Control 101 E Capitol, Suite 401 Little Rock, AR 72201 (501) 682-1105 Any person who is applying for a retail alcoholic beverage license or private club license must attend an educational seminar offered by the Alcoholic Beverage Control Division. Attendance at the seminar by the applicant shall be required prior to any action on the application by the Director. An application for a private club permit must be filed on behalf of a not-for-profit corporation, which must obtain an ordinance form the City Council authorizing it to make the application. Permit to sell Cigarettes, Tobacco, Amusement & Vending Machines To apply for special permits to sell these types of goods or to operate amusement or vending machines, contact: Arkansas Department of Finance and Administration Miscellaneous Tax Section (501) 682-7187 Contractors The Licensing Board and the Residential Committee establish minimum standards for licensed contractors that include experience in the construction industry, business skills and financial stability. Arkansas licenses both commercial and residential contractors. To apply, contact: State of Arkansas Contractor’s Licensing Board 4100 Richards Road North Little Rock, AR 72117 (501) 372-4661 Electricians To apply for an electrician’s license, contact:

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Arkansas Board of Electrical Examiners 10421 W Markham Little Rock, AR 72205 (501) 682-4549 Plumbing Unless you are working on your own residence or agricultural building, you must have a license to do plumbing work in Arkansas. To apply for a license, contact: Arkansas Department of Health Plumbing & Natural Gas Section; Division of Protective Health Codes 4815 W Markham, Slot 24 Little Rock, AR 72205 (501) 661-2642 Child Care Contact for requirements and licensing of a childcare business: Arkansas Department of Human Services Division of Child Care and Early Childhood Education 700 Main St., Slot S-140 Little Rock, AR 72201 (501) 682-8590 Massage Therapy Arkansas State Board of Massage Therapy 4815 W. Markham Street, Slot #8 Little Rock, AR 72205 (501) 683-1448 For other specific occupational licenses required in Arkansas, visit or contact the Department of Workforce Services at (501) 682-3798. Zoning The Planning and Development office works with developers and industries to continue the growth and development of Paragould in a positive direction. It administers and enforces ordinances relating to land use and development.

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They meet on the 1st Thursday night of the month at 6:30 in the council meeting room in City Hall at 301 West Court St. Paperwork must be in the hands of the Commissioners, Planning Department, Planning Commission secretary and City Clerk by Friday prior to the meeting on Thursday. All fees must be paid to the city clerk by Friday prior to the meeting on Thursday. Planning and Development Department 301 W Court Street Paragould, AR 72450 (870) 239-7513 DBA/Inc./Trademarks Assumed names/DBA Owners wishing to obtain information to protect their business name can contact the County Clerk’s office. Greene County Clerk’s Office 320 W Court St. Room 102 Paragould, AR 72450 (870) 239-6311 Incorporating Your Business To incorporate your business, contact the Arkansas Secretary of State’s Office. A one-time, $50 filing fee is required to incorporate or to form an LLC. A corporation or LLC will then pay an annual franchise fee minimum of $150. Secretary of State’s Office Business & Commercial Services 1401 W Capitol Ave., Suite 250 Little Rock, AR (888) 233-0325 or (501) 682-3409

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Name Registration An application for registration of a Trademark or Service Mark can be obtained in person from the Secretary of State’s Business & Commercial Services Division. You can also request on to be mailed by calling (501) 682-3409. A fillable PDF application may be obtained online at: Three original samples showing the mark as it is used in business must be provided with the application. Examples include product labels, letterhead, business cards and actual products. Photocopies are not acceptable unless they are depicting large signage or website printouts. Secretary of State’s Business & Commercial Services Division Attn: Trademark/Service Marks 1401 W. Capitol Ave., Suite 250 Little Rock, AR 72201 (888) 233-0325 or (501) 682-3409 Arkansas Taxes The Arkansas Department of Finance and Administration is responsible for the collection of all sales and use taxes. For vending or gaming machines, you must speak with the miscellaneous tax section regarding tax decals for the machines. Local personal property taxes and business personal property taxes are handled by the Greene County Assessor and Collector’s office. A business owner must assess the property of the business (building, equipment, and furnishings, but not land). Leased equipment must be listed, even though the owner of the equipment is the one taxed. Greene County Tax Assessor 320 W Court St. Room 101 Paragould, AR 72450 (870) 239-6303

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Sales Tax Applications can be picked up at the Sales and Use Tax office, completed online at OR a form may be printed, completed and mailed by visiting State of Arkansas Sales and Use Tax Ledbetter Building 1816 W 7th St., Suite 1330 Little Rock, AR 72201 (501) 682-7104 Mailing address: PO BOX 1272 Little Rock, AR 72203 State and Local Sales Taxes State of Arkansas 6.5 % City of Paragould 0.75 % Greene County 1.375 % Total Sales Tax 8.625 % Additional Sales Tax Hotel/Motel within the city of Paragould 3 % Grand total for lodging 11.625 % Sales Tax Number Contact the State of Arkansas Sales Tax Office to obtain your Arkansas Sales Tax Number. Department of Finance & Administration Sales and Use Tax Ledbetter Building 1816 W. 7th St., Suite 1330

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Little Rock, AR 72201 (501) 682-7904 New businesses must complete an application for withholding taxes for employees (form AR4ER). Applicants should include their Federal ID Number with the application. Forms are available online at or by contacting the DFA Office. Department of Finance & Administration Withholding Tax Unit PO Box 9941 Little Rock, AR 72203 (501) 682-7290 Mailing Address for W-2s: PO Box 8055 Little Rock, AR 72203 Mailing Address for Payments: PO Box 9941 Little Rock, AR 72203 Estimated Taxes Businesses with no employees must estimate taxes on personal income on a quarterly basis if taxes are expected to be $1000 or more a year. For additional information, contact the Estimated Tax Section at the address below or access its website for forms and instructions. Department of Finance and Administration Estimated Tax Unit P. O. Box 3628 Little Rock, AR 72203-3628 (501) 682-1100 Corporate Tax Corporations must register with the Secretary of State and pay a filing fee before doing business in Arkansas. Arkansas uses the Federal ID Number for Identification purposes. For

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additional information, contact the Corporation Income Tax Section at the address below or access its website for forms and instructions. Department of Finance and Administration Corporation Income Tax Section P. O. Box 919 Little Rock, AR 72203 (501) 682-4775 Federal Income Tax For federal income tax, contact the IRS. Internal Revenue Service 700 West Capitol Little Rock, AR 72201 (501) 369-5711 Any business hiring employees must notify the withholding office. Withholding Tax Branch Ledbetter Building 1816 W 7th St., Room 1380 Little Rock, AR 72201 Reporting Requirements Federal Employer ID Number (EIN) Once issued an EIN, the IRS will forward needed materials for remitting federal withholding taxes on a monthly or semi-weekly basis. Any business hiring employees must notify the withholding office. Department of Finance & Administration Withholding Tax Unit PO Box 9941 Little Rock, AR 72203

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(501) 682-7290 Income Tax Withholding Employers are required to withhold tax from wages of employees who work within the State of Arkansas. Employers are not required to withhold Arkansas tax from the wages of any employee who does not work within the State of Arkansas, unless the employee is a resident of Arkansas and the state where they are employed does not have a state income tax. An employer or withholding agent is required to register by completing a registration packet from the Arkansas Withholding Tax Section upon hiring the first employee. The packet contains a withholding registration (form AR4ER), withholding chart & instructions, Arkansas employee’s withholding, and an exemption certificate (form AR 4EC). Employers are required to submit the full amount withheld from the wages of all employees monthly. Payments are due on the 15th of the following month. The Federal Employer Identification Number is used to report and remit withholding taxes. The Annual Reconciliation form AR3MAR and W-2 forms are due by the 28th of February of the following year, along with 1099s. For more information, contact the Income Tax Withholding Unit or visit Insurance Requirements State Unemployment Insurance Every business that meets the definition of an employer is required to have a state unemployment account. Contact the Department of Workforce Services to register the business. Arkansas Department of Workforce Services 2 Capitol Mall Little Rock, AR 72201 (501) 682-3798 Workers’ Compensation Insurance

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All employers, regardless of the number of employees, should contact the Arkansas Workers’ Compensation Commission to determine if you are legally obligated to provide workers’ compensation insurance coverage. Workers’ compensation insurance is purchased by the employer from an insurance provider. Employers must also comply with workplace posting requirements and with procedural and documentation requirements in the event of an accident in the workplace. Arkansas Workers’ Compensation Commission 324 Spring St. P. O. Box 950 Little Rock, AR 72203-0950 (501) 682-3930 Business Planning The Arkansas State Small Business & Technology Department offers free one-on-one business consulting. They work with all types of for-profit businesses, from home-based to high-tech and every aspect of business creation, management, and operation. Arkansas State Small Business & Technology Department 319 University Loop West P.O. Box 2650 State University, AR 72467 (870)972-3517 Business Financing East Arkansas Planning & Development District (EAPDD) is dedicated to ensuring there are sources of funding for start-up and growth of small businesses throughout Northeast Arkansas. EAPDD 2905 King Street Jonesboro, AR 72403 870-932-3957 Local banks can assist with Small Business Administration loans and access to capital as well. Visit the Paragould Regional Chamber of Commerce’s website for a listing of banks in our market.

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Business Start-Up Checklist Task Complete Date Completed Business License Sales Tax Permit & Other Applicable Permits FEIN Income Tax Withholding Insurance Business Plan Financing/Start-Up Funds

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The Economic Development Corporation of Paragould is committed to creating jobs and supporting entrepreneurs in Paragould, AR. The Generating Innovative Network (GIN) soon to be completed in Downtown Paragould will be ground zero for entrepreneurship, job creation, workforce development, and the cultivation of skills. The Generating Innovative Network will be located on the 200 North block of Pruett Street in Downtown Paragould. *This publication of “How to Start a Business in Paragould” is produced by the Economic Development Corporation of Paragould (EDC), and while we believe it to be the most accurate information, the EDC shall not be liable for any misinformation provided in the publication.