Having a business license 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 license. If you’re planning to run a business in the state, you might need additional licenses 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 licenses can help protect you and your business legally and financially. Below, we’ll discuss common types of business licenses needed in Alaska, how to obtain them, and how much licensing could cost.

Key takeaways

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

• Your business might also need additional licenses 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 license in Alaska?

To operate a business in Alaska you need a general, statewide business license, which is issued by the Division of Corporate, Business, and Professional Licensing (CBPL). Almost every business that operates in the state must have this license, including sole proprietors, limited liability companies (LLCs), corporations, and nonprofits. 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 license might not be the only license you need. You might have to get other licenses 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 licenses are needed in Alaska?

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

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

• Professional license: 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 license before you apply for the general business license.

• Local business license: In addition to the statewide business license, some Alaskan cities and boroughs mandate a municipal business license 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 licenses: Depending on the type of business you intend to operate, you might need additional state licenses 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 licenses: Certain types of businesses also need federal licenses 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 licenses 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 license in Alaska?

Here are the general steps to follow to get your business license 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 license 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 license 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 license.

• 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 licenses: 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 licenses you need.

• Apply for an Alaska business license: If you apply for your Alaska business license online, it’ll be available immediately. However, if your business has a professional licensing requirement, you’ll have to apply for your business license 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 licenses cost in Alaska?

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

General business license fee

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

State professional license fees

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

Other state agency licensing fees

Additional fees for businesses that require permits or licenses 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 $25, while an annual permit from the Division of Environmental Health for a large restaurant costs $580.

Local license and permit fees

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

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

How do you renew an Alaska business license?

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

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

If your license 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 license by physical hard copy and pay $50 for each lapsed year. If it expired more than two years ago, you need to apply for a new business license.

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

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

Getting a business license 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 license is a requirement for almost all businesses, but some Alaskan municipalities require additional licensing. For example, Anchorage lists 10 specific types of businesses that need a municipal business license as well.

Out-of-state business entities

Corporations and LLCs from other states that plan to operate in Alaska also need a state business license. In Alaska, these businesses are labeled “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 license in Alaska