To get a tax ID number in Arkansas, you typically need two: a free federal Employer Identification Number (EIN) from the IRS, which you can obtain online in minutes, and an Arkansas state tax account through the Department of Finance and Administration’s online portal, which costs $50 if you’re registering for a sales tax permit. Apply for the federal EIN first, because the state registration asks for it.1Arkansas Department of Finance and Administration. Register for a Tax Account
Which Numbers You Actually Need
A federal EIN is a nine-digit number the IRS assigns to businesses, nonprofits, estates, and trusts. You need one if you hire employees, operate as a corporation, partnership, or multi-member LLC, run a nonprofit, or manage an estate or trust.2Internal Revenue Service. Employer Identification Number Sole proprietors who don’t strictly need one often get one anyway to avoid putting their Social Security number on invoices and W-9s.
An Arkansas state tax ID is a separate account number from the DFA. You’ll need it if your business collects sales tax, withholds Arkansas income tax from employees, or owes state corporate income tax.1Arkansas Department of Finance and Administration. Register for a Tax Account Most businesses selling physical goods or certain services need a sales tax permit, and any business with employees in Arkansas needs a withholding account. Most operating businesses end up with both.
Getting Your Federal EIN
The IRS uses Form SS-4, but the fastest path is the online application at irs.gov, which issues the number on screen the moment you finish. There is no fee.3Internal Revenue Service. About Form SS-4, Application for Employer Identification Number (EIN)
Have this ready before you start:
- Legal name, trade name if different, mailing address, and the entity type (sole proprietorship, LLC, corporation, partnership, nonprofit, trust, or estate).
- The responsible party’s name, Social Security number or ITIN, and signature. This is the person who controls the entity and its assets.2Internal Revenue Service. Employer Identification Number
- Your reason for applying: starting a new business, hiring employees, opening a bank account, or another qualifying reason.
Online Hours and Limits
The IRS online tool doesn’t run around the clock. It’s open Monday through Friday from 6:00 a.m. to 1:00 a.m. Eastern, Saturday from 6:00 a.m. to 9:00 p.m. Eastern, and Sunday from 6:00 p.m. to midnight Eastern. You have to finish in one sitting, since the application can’t be saved, and it times out after 15 minutes of inactivity. The IRS also limits you to one EIN per responsible party per day.4Internal Revenue Service. Get an Employer Identification Number
If You Can’t Apply Online
You can fax a completed Form SS-4 to the IRS and usually get your EIN back within four business days. Mailing the form takes about four weeks. Phone applications are only available to international applicants; domestic taxpayers can’t get an EIN by phone.5Internal Revenue Service. Instructions for Form SS-4 (12/2025)
Registering for Arkansas State Taxes
Arkansas state registration runs through the Arkansas Taxpayer Access Point (ATAP) at atap.arkansas.gov. If you’d rather use paper, Form AR-1R (the Combined Business Tax Registration) covers sales and use tax, withholding tax, motor fuel tax, and several other state taxes in a single application.1Arkansas Department of Finance and Administration. Register for a Tax Account
Before you start, pull together your federal EIN, the business’s legal name and address, the type of business activity, and the specific tax accounts you need. On ATAP, click “Register New Business” under Quick Links. The system walks you through each tax type and sets up a username and password you’ll use later to file returns.
Sales Tax Permit
If your business sells tangible goods or certain taxable services in Arkansas, you need a sales tax permit. The fee is $50, nonrefundable, paid electronically when you submit the registration.1Arkansas Department of Finance and Administration. Register for a Tax Account The state base rate is 6.5%, and local jurisdictions can add up to 5% on top, so combined rates run as high as 11.5% in some areas. Once you’re registered, you’re responsible for collecting the correct rate for each transaction and remitting it to the DFA.
Withholding Tax Account
Any business with employees working in Arkansas needs a withholding tax account to remit state income tax withheld from wages.6Arkansas Department of Finance and Administration. Income Tax Administration Register through ATAP or Form AR-1R. There’s no separate fee. The DFA assigns your account ID and filing frequency, and the paperwork typically arrives by mail within one to two weeks.
Out-of-State Sellers
If you’re based outside Arkansas but sell into the state, you still have to register and collect sales tax once you cross the economic nexus threshold: $100,000 in sales or 200 transactions delivered into Arkansas in the current or previous calendar year. Either one is enough on its own.7Arkansas Department of Finance and Administration. Remote Sellers Marketplace facilitators like Amazon or Etsy handle collection for sales made through their platforms, but sales through your own website or other direct channels are on you. Registration runs through ATAP, the same as for in-state businesses.
After You Receive Your Numbers
Your federal EIN appears on screen the moment you finish the online application. Print or save the confirmation page. The IRS also mails a formal notice called CP 575, which is your official proof of EIN assignment.8Internal Revenue Service. Topic No. 654, Understanding Your CP575 Notice Keep it somewhere safe; banks, licensing agencies, and creditors often ask for it. If you lose it, you can request a 147C verification letter by calling the IRS Business and Specialty Tax Line.
Sales tax permits registered through ATAP are usually confirmed quickly, with the account number often emailed within 24 hours. Withholding tax paperwork generally arrives by mail within a couple of weeks. Store both alongside your EIN confirmation. You’ll need every one of these numbers for filing tax returns, opening a business bank account, applying for local licenses, and running payroll.
Filing starts as soon as your accounts are active. Arkansas sales tax returns are due by the 20th of the month following each tax period, and you still have to file a return for months when you collected zero.9Arkansas Department of Finance and Administration. Sales and Use Tax Forms Withholding returns follow a schedule the DFA assigns based on your payroll size and are filed through ATAP. Federal employment taxes are filed separately with the IRS, typically on Form 941 each quarter. Federal and state obligations run on different schedules to different agencies, so one filing never covers both.