Having a business licence in Alaska is an important part of running a business legally and ensuring your activities comply with the state's regulations and laws. Nearly every business that operates in Alaska is required to have a general, state-level business licence. If you're planning to run a business in the state, you might need additional licences and permits from state agencies and local municipal governments, depending on your desired industry and where you intend to operate.

Whether you want to be an online seller, a food truck vendor, or a vacation rental host, obtaining the correct Alaska business licences can help protect you and your business legally and financially. Below, we'll discuss common types of business licences needed in Alaska, how to obtain them, and how much licensing could cost.

Key takeaways

• Alaska has a general, state-level business licence. Almost all businesses that operate in the state are required to have it.

• Your business might also need additional licences and permits from various state agencies and local municipalities. The Alaska Small Business Development Center (SBDC) and your local city or borough government can help you meet licensing requirements.

• Business licensing costs, application processes, and renewal frequencies vary depending on a business's location and industry.

Do you need a business licence in Alaska?

To operate a business in Alaska you need a general, statewide business licence, which is issued by the Division of Corporate, Business, and Professional Licensing (CBPL). Almost every business that operates in the state must have this licence, including sole proprietors, limited liability companies (LLCs), corporations, and non-profits. There are only a few exceptions (e.g., fisheries, insurance companies, mining operations), but these businesses have their own, separate licensing requirements.

The state-level business licence might not be the only licence you need. You might have to get other licences or permits, depending on the location you want to operate your business in and the type of business you're planning to set up.

What common types of business licences are needed in Alaska?

Here are some typical business licences you might need in Alaska:

• Statewide business licence: Alaska requires nearly every business to have a general, state-level business licence. This is a straightforward licence issued by the CBPL that needs to be renewed every one or two years, depending on the licence purchased.

• Professional licence: More than 40 professions (e.g., chiropractors, home inspectors, marine pilots) require additional professional licensing in Alaska. If you're planning to start a business in any of these industries, you'll need to get the relevant professional licence before you apply for the general business licence.

• Local business licence: In addition to the statewide business licence, some Alaskan cities and boroughs mandate a municipal business licence for certain companies and industries.

• Local municipal tax registration: Alaska doesn't have a state sales tax, so you won't need to register for a state-level sales tax permit. But some cities and boroughs in Alaska have a local sales tax and might require you to register your business for tax purposes.

• Zoning and planning permits: Check local zoning laws with your city or borough government to ensure you'll be able to operate a business there legally. Even if you plan to run your business from home, you might need additional permits.

• Other state licences: Depending on the type of business you intend to operate, you might need additional state licences or permits. Alaskan agencies that regulate various business activities and issue relevant permits include the Alaska Department of Revenue, Division of Environmental Health, and Department of Labor and Workforce Development.

• Federal licences: Certain types of businesses also need federal licences to operate legally in Alaska, such as firearms dealers, any business that sells alcohol, and radio and TV broadcasting companies.

Alaska doesn't have a single database for all business licences and permits, so it's important to research the requirements for the specific business you want to run. The Alaska Small Business Development Center (SBDC) offers resources (e.g., workshops, advisers) to help you meet licensing requirements.

How do you get a business licence in Alaska?

Here are the general steps to follow to get your business licence in Alaska:

• Choose your business structure: Decide whether your business will be a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each of these types of businesses needs a business licence to operate in Alaska. But if you're going to set up a corporation or LLC, you'll need to register for an Alaska Entity Number with the Corporations Section of CBPL first.

• Choose your business name: Getting a business licence in Alaska doesn't reserve or protect your business name. Search the state's licensing databases online to confirm availability, then register the name with the Corporations Section once you receive your licence.

• Get a federal EIN from the IRS: Once you know your business structure and name, you can apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) online.

• Obtain any required professional licences: Over 40 professions require additional professional licensing from the state (e.g., contractors, massage therapists, public accountants). Follow the prompts on the CBPL website for the relevant professions to apply for any licences you need.

• Apply for an Alaska business licence: If you apply for your Alaska business licence online, it'll be available immediately. However, if your business has a professional licensing requirement, you'll have to apply for your business licence via physical hard copy. The processing time is longer for these applications (10 – 15 days if you apply March – September, or longer during busier months).

• Register for local municipal taxes: Contact your local government for any tax registration requirements and forms. Contact information is listed on the Alaska tax jurisdictions page. If you're going to be operating as a remote seller, the Alaska Remote Seller Sales Tax Commission (ARSSTC) provides a portal that can help you handle local sales tax filings in one place.

How much do business licences cost in Alaska?

Here are some of the licensing costs you might have to pay as an Alaskan business owner.

General business licence fee

The statewide Alaska business licence costs US$50. For sole proprietors who are qualifying disabled veterans or senior citizens, the general business licence costs US$25 per year. You can find more details on this discount in CBPL's business licensing frequently asked questions (FAQs).

State professional licence fees

Statewide licensing fees for regulated professions in Alaska can cost several hundred dollars. For example, an acupuncturist professional licence, valid for up to two years, costs US$525, including a non-refundable application fee.

Other state agency licensing fees

Additional fees for businesses that require permits or licences from various Alaskan state agencies vary widely. For example, a catcher-seller permit for commercial fishing from the Alaska Department of Fish and Game (ADF&G) costs US$25, while an annual permit from the Division of Environmental Health for a large restaurant costs US$580.

Local licence and permit fees

Costs differ for any additional licences and permits that might be required by different cities and boroughs in Alaska. For example, in Anchorage, a circus, carnival, or fair event licence costs US$50. But an ice cream truck licence costs US$150, plus another US$150 to operate in parks.

In municipalities with no specific business licence requirement, there might be other licence or permit costs to factor in, such as zoning permits. For example, in Juneau, a zoning permit for a single commercial location costs US$300.

How do you renew an Alaska business licence?

Alaska business licences must be renewed every one or two years, depending on the licence you purchase. If you already have a business licence and need to renew it, you can visit CBPL's licence renewal site. Renewal opens 1 October every year.

All Alaska business licences expire on 31 December. If your licence was issued before 1 October, you'll have to renew it by 31 December that same year. If it was issued after 1 October, you won't have to renew it until 31 December the following year.

If your licence has lapsed, you might still be able to renew it, but it depends on how long it has been. If it's been less than nine months since the expiration date, you can renew online. If it's been longer than that, you need to renew your licence by physical hard copy and pay US$50 for each lapsed year. If it expired more than two years ago, you need to apply for a new business licence.

It's important to monitor your business licence renewals. Operating a business without an active business licence in Alaska is illegal. Penalties can include a fine up to US$2,000 or even prison time.

What Alaska-specific licensing considerations should you keep in mind?

Getting a business licence in Alaska requires business owners to interact with local city and borough municipal governments, state agencies, and various tax codes. Here are a few considerations specific to Alaska.

Local licensing requirements

Alaska's general, statewide business licence is a requirement for almost all businesses, but some Alaskan municipalities require additional licensing. For example, Anchorage lists ten specific types of businesses that need a municipal business licence as well.

Out-of-state business entities

Corporations and LLCs from other states that plan to operate in Alaska also need a state business licence. In Alaska, these businesses are labelled "foreign", which means they were initially formed and registered in another state or country. Any foreign business entities that plan to operate in Alaska must first register for an Alaska Entity Number.

Remote sellers

Even though there's no statewide sales tax in Alaska, many local municipalities levy their own sales taxes and are allowed to impose economic nexus requirements. A business creates economic nexus when it exceeds a certain threshold of economic activity, such as sales or revenue, in a specific jurisdiction. If a business does so, it is required to collect and remit sales tax.

A remote seller's business can create economic nexus in any locality in Alaska it sells into, potentially requiring multiple local filings and payments. To help simplify this, Alaska created the ARSSTC to coordinate sales tax collection for remote sales into the state. The ARSSTC gives sellers a single path to register and file with local governments.

However, not all jurisdictions are part of the ARSSTC. Remote sellers need to check both the ARSSTC and the guidelines in any locality they sell in for the latest rules.

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FAQs about getting a business licence in Alaska