Arkansas's Gross Receipts Tax is just its sales tax by another name.

The Bottom Line for Arkansas eBay Sellers

Arkansas gives you most of the answers a marketplace-only eBay seller needs, and an LLC changes none of them. The registration relief, the resale-certificate rule and the federal-tracking 1099-K duty all apply the same way to a sole proprietor and an entity. What forming the LLC changes is who absorbs the risk once you're operating as something bigger than an individual seller, worth doing before, not after, your Arkansas volume grows.

Arkansas's Department of Finance and Administration answers the registration and resale-certificate questions in plain, current guidance, and its 1099-K approach simply tracks whatever the IRS already requires through the federal-state filing program it participates in. The one genuine gap is whether a marketplace-facilitated sale counts toward your own threshold the same way it does in states with an explicit statutory carve-out. Arkansas's statute addresses how the facilitator's own threshold works but doesn't say the same thing for the seller's side in language confirmed from a primary source, and this page says so rather than guessing. That gap sits specifically on the seller's side of the calculation; the facilitator's own threshold, and the mechanics that shift its own registration duty, are both clearly documented. It's only the seller-facing mirror question that the state hasn't addressed in anything a primary source could confirm.

If every one of your sales into Arkansas runs through eBay, you do not need your own Arkansas sales-tax registration — eBay is the one collecting and remitting. We could not confirm whether Arkansas counts marketplace-facilitated sales toward its remote-seller threshold. Arkansas uses the federal reporting threshold, so eBay issues a 1099-K once you pass $20,000 and 200 transactions.

eBay Collects Arkansas Sales Tax. What Is Still Yours?

If every one of your sales into Arkansas runs through eBay, you do not need your own Arkansas sales-tax registration — eBay is the one collecting and remitting.

Working through Arkansas's marketplace-facilitator statute rather than a plain Q&A page, the mechanics point the same direction other states answer directly: a marketplace-facilitated sale counts toward the facilitator's own registration threshold, not the seller's, which means a seller whose only Arkansas sales run through a participating marketplace would never independently trip the state's registration duty on those sales. That reading is consistent with how Arkansas's Department of Finance and Administration has summarized the outcome elsewhere, but it comes from working through the statute's structure rather than a single sentence stating the conclusion outright. Worth confirming directly with the department if your setup is anything but straightforward eBay-only selling.

Do Your eBay Sales Count Toward Arkansas's Nexus Test?

We could not confirm whether Arkansas counts marketplace-facilitated sales toward its remote-seller threshold.

Here's the honest gap: Arkansas's remote-seller threshold itself is clearly stated and well documented, but whether a sale facilitated by eBay counts toward that number the way a direct sale would is a question the state's own remote-sellers page doesn't resolve, and neither does the statute creating the threshold. Other states in this cluster answer this explicitly, one way or the other; Arkansas currently doesn't, at least not in anything published where a primary source could confirm it. Track your off-marketplace sales carefully regardless, since those unambiguously count, and don't assume either answer for the marketplace side until Arkansas states one.

Arkansas's 1099-K Threshold

Arkansas uses the federal reporting threshold, so eBay issues a 1099-K once you pass $20,000 and 200 transactions.

Arkansas participates in the IRS's combined federal-state filing program, and its own guidance states the rule about as plainly as a state can: whatever 1099 forms you're required to file with the IRS, you're required to file with Arkansas too, with no separate state-specific figure for a 1099-K sitting on top of the federal one. That means the form you get reflects federal law start to finish. Reconcile its gross figure against your LLC's actual net proceeds before treating it as an income number; fees, refunds and cost of goods all belong in that reconciliation, and none of them show up on the form itself.

Buying Inventory to Resell in Arkansas

Arkansas accepts a resale certificate issued by another state, so you can buy inventory for resale without registering here first.

Arkansas is a full Streamlined Sales Tax member state and its own official exemption certificate form is drafted to accept a nonresident purchaser's home-state permit number in lieu of an Arkansas permit.

Arkansas's own exemption certificate includes a line specifically for a nonresident purchaser's home-state permit number as an alternative to an Arkansas one; the state is a full member of the Streamlined Sales Tax agreement, and its paperwork reflects that directly. On the secondhand side, Arkansas's Dealer in Secondhand Goods statute defines the term broadly enough to sound like it might license general resellers, but reading the actual enacted text shows it creates only civil procedures for recovering stolen property, not a licensing or registration requirement of any kind. Little Rock runs its own municipal secondhand-dealer license, which is where general licensing in Arkansas actually lives. Check your own city rather than assuming a state license is the relevant one. If a supplier does ask specifically for an Arkansas number rather than accepting your home-state permit, that's a supplier policy rather than a state requirement, and it's worth asking them directly whether they'll accept the Streamlined Sales Tax paperwork before assuming you need a new registration.

Arkansas leaves second-hand dealer licensing to cities and counties, so check your own. Arkansas's 'Dealer in Secondhand Goods Reform and Disclosure Act' (Ark. Code § 18-27-301 et seq., enacted by Act 1242 of 2015) defines 'dealer' broadly to include both pawnbrokers and anyone 'purchasing other than at wholesale or retail an article of personal property for resale in any form', but read directly (via pdftotext of the enacted bill text), the Act only creates civil procedures and liability rules for recovering stolen property from dealers; it does NOT impose any statewide license, permit, or registration requirement (no 'license'/'registration'/'permit' language governing dealers appears anywhere in the Act). Arkansas separately requires precious-metals dealers to register with local law enforcement (Ark. Code § 17-23-201 et seq.), a narrow carve-out, not general resale. General secondhand-dealer licensing in Arkansas is handled at the city level (e.g., Little Rock's municipal code has its own secondhand goods/pawnbroker/precious-metals/scrap-metal dealer license divisions).

Setting Up to Sell on eBay from Arkansas

1. Tally your off-marketplace Arkansas sales separately from your eBay volume

   Direct sales, wholesale transactions and non-marketplace channels unambiguously count toward the state's threshold, whatever the answer turns out to be for eBay itself.

2. Ask DFA directly whether your eBay sales count toward the state threshold

   The published guidance doesn't resolve this, so a direct call is the way to get a current answer for your specific situation.

3. Form the LLC before your sourcing or wholesale activity grows

   The registration and resale-certificate relief apply the same way to an LLC as a sole proprietorship, so there's no reason to wait on the entity filing.

4. Use your existing exemption certificate with an Arkansas supplier

   Arkansas's own form accepts a nonresident purchaser's home-state permit number, so a new Arkansas registration usually isn't needed just to buy wholesale.

5. Check Little Rock's or your own city's secondhand-dealer rules if relevant

   Arkansas's state statute creates no licensing duty of its own, so any requirement you'll face comes from local ordinance instead.

What We Could Not Confirm for Arkansas

These pages only state what a primary source establishes. For Arkansas we could not confirm the following, so this page does not answer it:

• whether marketplace sales count toward the economic-nexus threshold

Who to Ask in Arkansas

The Arkansas Department of Finance and Administration is the right contact for registration, resale-certificate and nexus questions, and is also the office that could confirm the open facilitated-sales question this page couldn't resolve on its own. The Arkansas Secretary of State's office handles the LLC filing itself, separately from anything DFA tracks. Arkansas's DFA also maintains an online taxpayer portal for registration and filing, which is the practical starting point once you've a direct answer on the open nexus question.

Sources

• https://arkleg.state.ar.us/Home/FTPDocument?path=/ACTS/2019R/Public/ACT822.pdf
• https://www.dfa.arkansas.gov/office/taxes/excise-tax-administration/sales-use-tax/remote-sellers/
• https://www.dfa.arkansas.gov/income-tax/sales-and-use-tax/remote-sellers/
• https://www.dfa.arkansas.gov/wp-content/uploads/2025_Mag_Media.pdf
• https://www.dfa.arkansas.gov/wp-content/uploads/Withholding-Tax-Instructions-for-Employers.pdf
• https://www.dfa.arkansas.gov/office/taxes/income-tax-administration/withholding-tax-branch/
• https://www.dfa.arkansas.gov/wp-content/uploads/ExemptionCertificate.pdf
• https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FActs%2F2015%2FPublic%2F&file=1242.pdf&ddBienniumSession=2015%2F2015R
• https://www.sos.arkansas.gov/uploads/rulesRegs/Arkansas%20Register/2006/nov_dec_2006/006.05.06-005.pdf
• https://dfa.arkansas.gov/excise-tax/sales-and-use-tax/remote-sellers
• https://www.irs.gov/instructions/i1099k

Federal 1099-K threshold: IRC § 6050W(e), as amended by § 70432(a) of the One, Big, Beautiful Bill Act (P.L. 119-21, July 4, 2025). A third-party settlement organization such as eBay must file Form 1099-K only if BOTH tests are met for the calendar year: gross payments exceed $20,000 AND the number of transactions exceeds 200. These are the figures for tax year 2026. There is no forward phase-in: § 70432(a) takes effect "as if included in section 9674 of the American Rescue Plan Act," so the same $20,000 / 200 figures apply retroactively to calendar years after 2021 (tax years 2022 through 2026 alike). The $600 threshold enacted by ARPA § 9674 (P.L. 117-2) was repealed before it operated, and the IRS transition-relief thresholds previously announced for 2024 and 2025 are superseded. A platform may issue a 1099-K below these figures, and a state may set a lower TPSO threshold, in which case a seller can receive a 1099-K without meeting the federal test.. Verified 2026-08-08.