Little Rock has the nation’s 2nd-lowest labor costs, and the 12th-lowest business costs, making it a great choice for entrepreneurs. Establish your business today with our simple step-by-step guide and get on the path to financial independence. Get in touch with a local business resource for some help if you get stuck.
Following are the steps to starting a business in Little Rock, Arkansas:
Step 1: Select The Right Business Idea
The first step toward becoming a business owner is to determine what kind of business to start. Look for an idea that matches your interests, your personal goals, and your natural abilities. You will remain motivated when the going gets tough and thus greatly improve your chances of success. Our small business ideas will help you get started. Here are the top Arkansas attractions that attracted visitors in 2021:
Step 2: Plan Your Business
Successful businesses are built by carefully planning. Before you commit a significant amount of money and other resources into your business, analyze your idea critically and create an action plan. You should at least have good answers to the following questions.
Business Name
You’ll want to choose an Arkansas naming rule that is available for use as a URL, resonates with your customers, and follows the rules for naming your business.
Development Of Products
What problem is your business solving? How does it differ from its competitors?
Sales & Marketing
Who are your potential customers, and how are you going to get their attention and convert them into buyers?
Building Partnerships
What roles will you need to hire and how will you establish professional relationships in order to succeed?
Planning Your Finances.
What number of clients or sales are you going to need to break even? What funding will you need to make it happen?
Step 3: Organizing Your Business
Having your Arkansas company registered as a legal business entity, such as a Corp or LLC, has two major advantages.
- Enhanced credibility
- Liability protection in the event your business is sued
Generally, it’s a great option for small businesses to form an LLC.LLCs are simpler to form and manage than other business entities, and they also enjoy favorable tax treatment. An LLC can be created for less than $50 in Arkansas.
You become personally responsible for your company’s debts and liabilities if you choose not to incorporate your business as an entity. In addition, unregistered businesses may need to file a Trade Name, otherwise known as a Doing Business As, or DBA.
Step 4: Securing Your Domain
Please check the availability of your business name as a web domain online. Even if you don’t intend to make a business site today, you may want to register the URL to prevent others from obtaining it. For checking your domain name you can use Namecheap.
Step 5: Enroll for taxes
Employer Identification Numbers (EINs) are also known as Tax Identification Numbers and are generally required by most businesses. An EIN identifies a corporation in tax filings. Businesses cannot open bank accounts unless they have an EIN.
You should also know about important arkansas tax issues that may affect your business:
- Selling a physical product typically requires that you register for Arkansas Sales Tax.
- If you hire employees in Arkansas, you will be required to register for Unemployment Insurance Tax and Employee Withholding Tax.
Step 6: Open Business Banking & Credit Accounts
Personal asset protection is important when using dedicated business banking and credit accounts.
In business law, this is referred to as piercing your corporate veil when your personal assets (your home, car, jewelry, and other valuables) are at risk if your business is sued.
Furthermore, learning how to build business credit can help you secure credit cards and other financing in your business’s name (instead of your own) along with better interest rates, higher credit histories, and more.
These two steps will assist you in protecting your business:
1. Opening a bank account for your business:
- Separates your personal assets from your business assets, a necessary step in the protection of your personal assets.
- Facilitates tax preparation and accounting.
2. How to get a business credit card:
- Separates business expenses from personal expenses.
- Builds your company’s credit history (such as small business loans) which can be helpful for you later on.
Step 7: Set Up Books For Accounting
An accounting system simplifies filing of annual tax returns and allows you to track the performance of your business. Accounting software allows you to download your bank and credit card transactions, which makes it faster and easier to do your accounting. Read on to find out more about the importance of accounting and how to get started today.
Step 8: Getting Permits & Licenses
To run your new business legally, you must abide by federal, state, and local government regulations. In most cases, this involves applying for permits and/or licenses in order to operate a business. For example, a restaurant may need a health permit, a building permit, signage permits, etc.
Step 9: Make Sure You’re Insured
Business insurance allows you to manage risks and stay focused on growing your business. The most common types of business insurance include:
- Insurance coverage for general liability
- Workers Compensation Insurance
- Liability insurance Professional Liability Insurance
A general liability policy should be purchased by all small businesses, including home based businesses. A professional liability policy is also important for firms offering professional services, such as accounting firms and consulting firms. Businesses in Arkansas with three or more employees must have workers compensation insurance, excluding officers and members of LLCs.
Step 10: Define Your Brand & Promote Your Business
Businesses that succeed must have a strong brand. When developing your brand, you should consider:
- What do you stand for as a business?
- How would you describe your core values?
- How can you earn a customer’s trust?
Once you feel comfortable answering these questions, it is time to work on your business name. A successful business starts with good branding. To learn more about naming your business, read our How to Name a Business guide.
Promoting Your Business
It is possible to promote your business in many different ways, but the best methods are:
- Press Releases
Press Releases
Press Releases are an effective method to promote your brand, and one of the most cost-effective ways of doing so.
- Attracts publicity
- Establish your brand on the internet
- Increase traffic to your website by improving its SEO
- Are a one-time investment in time and resources
- Have long-lasting benefits
Through a Facebook page, you can keep in touch with your customers free of charge. However, success requires ongoing effort.
A Facebook page is useful for:
- Establish a local presence for your business
- Showcase your company’s products and services
- Get to know your customers
- Get customer reviews and share them
- Promote your business by advertising, even if ads are not appropriate for your business.
Step 11: Create a Web PresenceStep 11: Establish a Web Presence
No matter what industry you are in, a professional website is critical to your long-term business success. A website allows your business to be discovered online and enables customers to discover the products or services you offer, and it also enhances your business’s credibility.
As well as a website, you should also consider the following options for promoting your business online:
- Setting up social media accounts (Facebook, Twitter, etc.)
- Establishing accounts on review sites (Yelp, Google Reviews, etc.)
- Making a local Google profile
Infodrafts Solutions can assist you after having your business license validated.
We offer Search Engine Optimization, Pay Per Click, Web Design, and any other digital marketing solution that you need. As you’re looking for more information on how to take your business to the next level, you can view our Little Rock SEO page.