The SoCE Law (Arkansas Minor Microbusiness Act)
Supporting Arkansas Kids • Strengthening Families • Building Next Gen Leaders

Executive Summary
The SoCE Law (Arkansas Minor Microbusiness Act) empowers Arkansas youth ages 6–18 to start and operate microbusinesses without unnecessary regulatory barriers, while ensuring parental oversight, financial responsibility, and tax compliance.

Key Features

• Revenue Cap: $10,000 per year
• Sales Limit: 12 channels or events annually (includes online and consignment)
• Parental Consent & Supervision: Required for all businesses
• Tax Compliance: State sales tax and federal obligations apply
• Financial Safeguard: 10% of earnings saved in a trust account for the child’s future
• Guardian Compensation: Limited to 15% of revenue for support services
• Food Safety: Required for any food-based business
• Operate solely in the handmade goods category
• Maintain annual earnings reports and proper documentation of all sales activity.
• Register their business as a "Youth (DBA)” with the Arkansas Secretary of State, regardless of age, upon submission of parental or guardian consent.
• Waive yearly franchise tax fee

Why Arkansas Needs This Law Now
Current Situation

Arkansas currently has no statewide protections for minor-run businesses. Missouri, Nebraska, and Colorado have “lemonade stand” laws, but Arkansas can lead with a structured, safe approach that builds financial literacy and entrepreneurial skills, at zero cost to the state.

Why It Matters

• Teaches financial literacy and accountability
• Encourages creativity, leadership, and work ethic
• Strengthens family and community engagement
• Positions Arkansas as a leader in structured, safe youth entrepreneurship
• This is more than a lemonade stand law, it’s an investment in the next generation of Arkansas leaders.

Bottom Line

The SoCE Law strikes a balance between freedom and safeguards. Unlike other states’ deregulation-only models, Arkansas can lead with a structured framework that teaches responsibility, promotes education, and protects kids.

Why Arkansas Needs This Now

Without a clear law, minors face inconsistent local regulations and limited protections. The SoCE Law:

• Standardizes rules across the state
• Expands existing trust requirements to entrepreneurship
• Encourages workforce readiness and small-business innovation
• Costs the state nothing while boosting local economies