Fayetteville, AR
July 8, 2025
I’m sharing this experience to help other small business owners avoid costly mistakes. When I was starting my LLC (cleaning business), I met with Carol in 2024 for tax guidance. She told me I would only need to pay taxes on money withdrawn from my business account into my personal account, and that there was no requirement to collect sales tax for cleaning services in Arkansas.
Both of these statements were incorrect.
I still have the written notes from that first meeting, so I know for a fact that this was the guidance I was given. I later spoke with another tax professional who confirmed that sales tax is required for my type of business, and I verified the same information on the official Arkansas DFA website. Because I followed Carol’s advice in good faith, I now owe sales tax on over $35,000 in revenue, which is costing me thousands of dollars, along with penalties and interest. This situation could have been entirely avoided with accurate information.
This review is meant to be a warning to others to verify any tax guidance you receive especially when it involves legal compliance. Mistakes like these can have serious financial consequences.