Cabin Business

Small businesses are the lifeblood of communities throughout Arkansas, and Conway is no exception. These small businesses provide a sense of personal service and a feeling of community with which larger corporations simply cannot compete. On the other hand, however, corporate businesses generally have access to much quicker and better funding. Fortunately, several agencies, including both federal and state, provide small businesses with resources to level the playing field.
From a tax perspective, Arkansas provides efficient online tax filing and reporting capabilities for withholding, sales and use tax, and unemployment insurance. For small businesses, which often do not have the administrative capacity of larger corporations, Arkansas allows quarterly and, in some cases, annual versus monthly tax filing.
For assistance in understanding the resources and getting more information regarding tax filing responsibilities, the Arkansas Department of Finance and Administration provides a Taxpayer Assistance Office and a Revenue Legal Counsel Office to answer specific tax questions.
The Small Business Administration (SBA) in partnership with UALR’s Arkansas Small Business and Technology Development Center work together to provide consulting, training and research to small and start up businesses in Arkansas. The SBA also partners with local lenders in providing stable financing, one of the most important factors in business success. Since February 2009, the SBA has made $91 million in loans available, creating 2,500 small business jobs in Arkansas.
While much of the resources at the Arkansas Department of Economic Development are targeted to larger businesses, they, in partnership with the SBA, conduct an annual Small Business Procurement Conference. The next conference is scheduled for April 27.
The business sales tax refund filing process stemming from the cap on purchases of large items is a big consideration for businesses in Arkansas and, most especially, for small businesses. As part of the streamline sales tax reform laws, a business making a business-related purchase is entitled to a local sales tax refund for the entire amount of tax paid on the portion of the purchase price which exceeds $2,500.
My colleagues and I enacted three key pieces of legislation during the 87th General Assembly to help small businesses.
• Act 498 provides an income tax credit equal to 25 percent of the total qualified rehabilitation expenses up to $500,000 of expense on income producing property or $100,000 of expenses on non-income producing property.
• Act 349 amends the Delta Geotourism Incentive Act of 2007 to allow a geotourism income tax credit to transfer to other tourism projects around the state and to allow the income tax credit to carry forward.
• Act 1205 exempts from the sales and use tax the sale of raw products from a farm, orchard or garden that are produced and sold by the producer of the raw products at a farmers’ market.
Some of the best sources of information and assistance can be found at http://arkansas.gov/dfa. Additionally, one of the most helpful resources for small businesses is a handbook entitled Starting a New Business, which can be found at http://www.arkansas.gov/dfa/income_tax/tax_guide_overview.html
Additional important informational links for small businesses are:
• Arkansas Small Business and Technology Development Center: http://asbtdc.ualr.edu
• Arkansas Procurement Assistance Center: http://www.arcommunities.org/apac.htm
• SCORE is a group of retired executives who provide free counseling and mentoring to small business owners. Jim Sadler is the Little Rock chapter contact. Email him at littlerockscore@sbcglobal.net.
• Moving to Arkansas Brochure Link: http://www.arkansas.gov/dfa/income_tax/tax_general_moving.html
• Starting A New Business Link: http://www.arkansas.gov/dfa/income_tax/tax_guide_overview.html
• Tax Credits, Special Refunds Section Link, and Business Incentives Link: http://www.arkansas.gov/dfa/excise_tax_v2/tc_index.html
Rep. Linda Tyler was part of the 87th General Assembly which enacted three different pieces of state tax legislation in 2009.