How to get an Alaska business license

Do you need a business license in Alaska?

Alaska is one of the few states that issues a statewide business license. Most businesses need to apply for one through the Alaska Division of Corporations, Business, and Professional Licensing.

Most businesses will also need professional or specialized licenses before they can legally operate. The Division has a resource page to help you find the appropriate licensing board.

Legal business entities such as LLCs and corporations must register for an Alaska Entity Number with the Division before applying for a business license. If your business requires professional licensing, you must obtain that license before applying for a business license.

Steps to obtaining a business license in Alaska

Business license requirements, and the process for obtaining a license, can vary based on your business activities and where you operate. Below are the general steps for obtaining a State of Alaska business license.

Step 1: Research licensing requirements

Research all licensing requirements early in your business planning process. This should be done for every location where you plan on operating. Check zoning requirements, as these may restrict where you can do business. State and various local Alaska government websites have online resources to help you identify your specific requirements.

For more information, see Research: The first step in business license compliance

Step 2: Register your business entity

Alaska requires legal entities such as corporations, LLCs, partnerships, and LLPs to register for an Alaska Entity Number before applying for a state business license. This rule applies to both domestic and foreign (out-of-state) business entities.

The Alaska Division of Corporations, Business, and Professional Licensing oversees both business entity registration and the issuing of state business licenses.

Both domestic and foreign business entities must also appoint and maintain an Alaska registered agent.

Step 3: Obtain an EIN

A federal employer identification number (EIN) is issued by the IRS and is required for many businesses. An EIN is used for filing federal taxes, opening a business bank account, and managing tax reporting for vendor payments (such as issuing 1099s).

Step 4: Decide on a DBA

The Alaska business license form asks for a business name, which serves as your trade name, also known as a "doing business as" (DBA) name. You must use this name exactly as it appears on your license for all advertising and operations.

Note that Alaska handles DBAs differently than most states. In most states, a DBA is a separate filing that allows a business to operate under a name other than its legal name. In Alaska, your DBA is tied directly to your business license rather than filed independently.

On the application, you can enter either your full legal name (e.g., Swing Line Inc.) or a pseudonym (e.g., Swing Shop). If your business operates or advertises under multiple names, a separate license is required for each one.

Step 5: Apply for an Alaska business license

You can apply online or by mail through the Alaska Division of Corporations, Business, and Professional Licensing.

Your application will require the following information:

• Business name, address, and contact details
• Previous business license number (if applicable)
• Ownership information, including entity name and entity number (if applicable)
• NAICS code
• State professional license number (if applicable)

There is the option of purchasing a license for one year or two years.

Step 6: Obtain professional and specialty licenses

Depending on your business activity, you may need a professional or specialty license from an Alaska licensing board or agency in addition to your general business license. Common examples include licenses for contractors, healthcare providers, and real estate agents. The Alaska Division of Corporations maintains a directory to help you identify which licenses apply to your business.

Step 7: Apply for local business licenses and permits

Your business may need one or more licenses, permits, or registrations at the city or borough level to operate legally. Common local requirements include a municipal business license, zoning approval, and permits for health, signage, or home-based operations.

Alaska does not have a statewide sales tax, but many local municipalities do. Your business may need to register for local sales tax collection.

Keep in mind that these requirements apply in every jurisdiction where you have a physical presence or conduct business, and some cities require separate permits and registrations for each location.

Alaska business license and permit requirements

Depending on your business type, location, and industry, you may need a combination of local, state, and federal licenses and permits. Here's an overview of the common license and permit requirements in Alaska.

State

• Alaska business license: This state business license is issued by the Division of Corporations, Business, and Professional Licensing (CBPL) in Alaska.
• Industry and professional licenses: Many industries and professions require a license or registration issued by a state agency. These requirements may apply to the business, the individual, or both. Common examples include professional services (such as healthcare or law), restaurants, and contractors. The CBPL has resources for many of these licenses.
• Special state permits: Businesses that sell regulated products such as alcohol or tobacco must obtain special state-issued permits.

Local

• Municipal business license: In addition to a state business license, you may need to get a municipal business license for each city where you plan to operate in Alaska.
• Sales tax registration. Many Alaska municipalities require businesses to register for local sales tax collection.
• Other local licenses and permits: Cities and boroughs may impose additional licensing and registration requirements, such as certificates of occupancy, certificates of use, and permits from zoning, health, and other departments.

Federal

• Federal licenses and registrations: Federal licenses are typically required for businesses regulated by a federal agency, such as the Securities and Exchange Commission (SEC), the U.S. Department of Agriculture (USDA), or the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). For example, food businesses that buy or sell more than 2,000 pounds of fresh or frozen fruits or vegetables in any given day must obtain a USDA PACA license.

How much does an Alaska business license cost?

The cost for an Alaska business license is $50 for one year and $100 for two years. Local licenses and permits vary by jurisdiction and type, so check with your city or borough for specific fees. Professional and specialty licenses carry their own fees set by the relevant licensing board.

What are the penalties for not having a business license in Alaska?

Conducting business without the required state or city licenses may subject you to fines and penalties. For general business operations, the State of Alaska may impose civil fines for knowingly operating without a license.

The penalties are much more severe for specialized industries. Failure to obtain a specialized state license (such as for contracting), can result in both civil and criminal penalties.

How to renew business licenses in Alaska

Business licenses and permits must be renewed periodically, and renewal requirements vary depending on the type of license. Professional licenses, for example, may require completed continuing education hours or a passed exam before renewal can be filed.

The general business licenses issued by the State of Alaska expire on December 31, either one or two years from the date of issue depending on whether you choose an annual or biennial license. This license can be renewed online through the Division of Corporations, Business, and Professional Licensing website or by mail. The cost is $50 for a one-year license and $100 for a two-year license.

It's important to track renewal deadlines and update your licenses promptly if any business details change, such as your name or address. Failing to renew a required license can result in penalties, fees, and the inability to legally operate your business.

Alaska business license resources

• Business license requirements: Compliance guide
• Alaska Division of Corporations, Business, and Professional Licensing