Who Needs an Arkansas Resale License?
Any business that resells items at retail needs an Arkansas resale license, including home-based and online-only businesses. While you can certainly operate your business without one, it makes things a bit more complicated.
For example, you buy and resale arts and crafts items. When you do not have a resale certificate, you must pay sales taxes to your vendors and suppliers. Then, when you sell the items to your customers, you must collect sales taxes from them, as well.
In this scenario, you can deduct the sales taxes you paid to your vendor and suppliers when submitting the collected sales taxes to the Arkansas Department of Revenue. However, you must keep meticulous records and receipts.
On the other hand, when your business has a resale certificate in Arkansas, you may not have to pay sales taxes to your vendors and suppliers. So while you still need to keep accurate records and receipts, submitting your collected sales taxes is much easier.