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Swyft Filings is committed to providing accurate, reliable information to help you make informed decisions for your business. That's why our content is written and edited by professional editors, writers, and subject matter experts. Learn more about how Swyft Filings works, our editorial team and standards, what our customers think of us, and more on our trust page.
If you’re a new Alaska business owner with a great idea for a limited liability company (LLC), you need to do more than complete your formation documents. You need a business license or even several.
This article will tell you exactly what those licenses are and where you can get them.
Alaska Business License: Key Takeaways
A business license is essential for conducting legal business operations in Alaska, and no single license covers all businesses.
In addition to state and federal licenses, local city or county licenses may be required depending on where your business operates.
Most business licenses, including the general business license in Alaska, require regular renewal.
Ensuring you have the right business licenses and permits is crucial. Let us manage the complexities for you, so you can stay focused on what you do best — running your business.
What Is a Business License?
A business license is any sort of permission that you need from a government entity to conduct business in a location. That entity may be national, such as is the case with the federal government and its various licensing authorities. But you may also get licenses from city councils and states, depending on your line of business.
The state of Alaska’s business license requirements range from a general license all companies must have to individual licenses based on the type of business you run.
There isn’t a single business license that covers every type of company in Alaska. As well as state licenses, you may need federal, city, and professional licenses, all of which come together to cover your business activity.
Get Your Alaska Business License in 7 Steps
If you’re ready to get your state business license and any additional licenses you need to operate within Alaska, follow these seven steps.
Step 1: Apply for Alaska General Business Licenses
Alaska is one of a handful of states that require all companies to have a general business license before they set up shop. The Department of Commerce, Community, and Economic Development’s Division of Corporations, Business and Professional Licensing oversees the provision and renewal of these general licenses.[1]
You have a choice between one and two-year licenses, though every license expires on December 31 of its expiry year. You can purchase your license online via the Division of Corporations, Business and Professional Licensing website for $50 per calendar year. Senior citizens and disabled military veterans often receive discounts on the standard license fee.[2]
Per the application, you need to provide the following information about your small business:
Company name
Company’s physical address or P.O. Box
Information about the chosen business entity
Information about the type of business and its offered products or services
Any endorsements for selling alcohol or tobacco products
Note that you’ll need to renew this license every one or two years, paying additional license fees in the process. You can do this online or by sending the relevant forms to the following address:
Business Licensing Section
P.O. Box 110806
Juneau, AK 99811-0806
Step 2: Apply for Federal Licenses for Alaska Businesses
With your general business license secured, your next step is getting any necessary federal licenses.
You will need federal licenses if what you do requires oversight from a federal organization. For instance, any business transporting livestock across state lines needs a business license from the U.S. Department of Agriculture. If your work involves mining or drilling, you need approval from the Bureau of Safety and Environmental Enforcement.
The U.S. Small Business Administration maintains a list of possible federal licenses you may need, alongside contact information for the relevant departments that oversee these licenses. Check to see if your business requires a federal license to avoid severe financial and legal penalties.[3]
Step 3: Search for Alaska Permits and Licenses
Many states require companies to apply for specific licenses, such as building permits or occupational licenses. Alaska is no different, as it has several groups in place to oversee certain industries.
Take the state’s Alcoholic Beverage Control Board (ABCB) as an example. As the name implies, this state-level organization oversees the manufacturing and retailing of alcohol. You still need ABCB’s approval even if you have a federal license to sell alcohol.[4]
A federal license doesn’t supersede any state license you need in Alaska. You need both, along with any additional licenses on the local and professional levels.
Step 4: Search for Local County or City Alaska Business Licenses
Even though you may have several state and federal licenses at this point, you have to narrow your view to the city or county level to see what additional licenses you need to operate in your specific location.
In other words — every Alaskan city has its own ordinances and licenses that your business may need. A few examples include:
Anchorage: Anchorage has several municipal business licenses for industries like pawnbroking, towing, and detective agencies. It also issues permits related to food, transportation, and contracting businesses.[5]
Juneau: Every company that wishes to operate in Juneau must get a sales tax permit from the city’s sales tax administrator before it can make sales or render services.[6]
Fairbanks: The city requires every company within its city limits to have a city business license on top of its state business license.[7]
The local city clerk’s office is an excellent place to get information about any local licenses you may need. You need them alongside state and federal licenses, or the city you operate in may ban you from doing business.
Step 5: Search for Alaska Professional Licenses
Where a business license covers your entire company, a professional license tends only to cover an individual. For example, let’s say you’re running a plumbing company. Naturally, you hire plumbers. Those plumbers each need to have professional licenses from the state to do their jobs.
You’ll see this in other industries, such as lawyers and doctors.
The state of Alaska maintains a database of individuals who have professional licenses in the state. Your customers may check the database to confirm you have your license, so you need to apply with the appropriate licensing board to get it.[8]
Step 6: Apply for an Alaska Home-Based Business License
Some states require home-based businesses to get special business licenses for using a residential address as a business location. Alaska isn’t one of those states because its general business license covers all types of businesses, whether they’re home occupations or based on commercial premises.
But that doesn’t mean a home-based new business can always get away with having just the general state license. For instance, a daycare company may need licenses to care for children. In contrast, a business in which somebody sells items online from home may still need specific licenses, depending on what they sell.
Step 7: Maintain Your Alaska Business License
Most business licenses need to be renewed regularly.
Take Alaska’s general business license as an example — it needs renewing every one or two years, depending on your choice. The same often applies to other federal, state, local, and professional licenses, as it’s rare to find a business license that requires no renewal once you’ve received it.
Renewing your licenses is vital for staying in good standing with the Secretary of State of Alaska. Plus, it’ll ensure you’re not liable to get prosecuted for trying to run a company without the appropriate permissions.
Apply for an Alaska Business License Online
Every new business in Alaska must get a general business license to stay in good standing with the state. Then, it may need several other national, state, and local licenses. Add maintenance to that list (every business license application needs occasional renewal), and there’s a lot there for any small business owner to handle.
Swyft Filings makes things simple.
We’ve worked with over 300,000 companies and can offer your new business a Business License service. Use it to determine what licenses your Alaskan company needs, handle your filing requirements, and stay on top of renewals and license maintenance.
Focus on Your Business: Dive into your passion while we handle the intricacies of acquiring the necessary local, state, and federal business licenses and permits.
Simplify Your Paperwork: Complete our straightforward questionnaire, and we’ll handle all the required filings for you, accurately and promptly.
Stay Compliant: Avoid the risks and severe repercussions of non-compliance. We’re here to ensure your business remains in good standing.
FAQs
How do I get a business license in Alaska?
You can buy your general business license online from the Department of Commerce, Community, and Economic Development website.
Does Alaska require a general business license?
Yes, Alaska businesses must have a general business license available in one and two-year renewal varieties.
Can you sell things in Alaska without a license?
If you’re running a business, you must have a general business license (plus appropriate additional licenses) before selling anything.
Do I need a special license for an online business in Alaska?
No, there isn’t a special license for online businesses in Alaska.
Can I collect sales tax in Alaska without a license?
Sales tax depends on the city or municipality in which you’re in. The state of Alaska doesn’t have a sales tax, but each municipality within the state has its own rules that you must consider.[9]
How much does an Alaska business license cost?
Alaska general business licenses cost $50 per year.
What’s the penalty for not having a business license in Alaska?
Not having a business license, or having one without the required endorsements or additional licenses, can lead to a fine of up to $2,000 or up to six months in prison.[10]
Bibliography
Department of Commerce, Community, and Economic Development. “Business Licensing.” Accessed July 24, 2023.
Department of Commerce, Community, and Economic Development. “Alaska Business License and Endorsements New Application Instructions.” Accessed July 24, 2023.
U.S. Small Business Administration. “Apply for Licenses and Permits.” Accessed July 24, 2023.
Department of Commerce, Community, and Economic Development. “Alcohol & Marijuana Control Office.” Accessed July 24, 2023.
Municipality of Anchorage. “Licenses.” Accessed July 24, 2023.
City and Borough of Juneau. “Business Registration.” Accessed July 24, 2023.
City of Fairbanks Alaska. “City Business License Information.” Accessed July 24, 2023.
Department of Commerce, Community, and Economic Development. “Professional License Search.” Accessed July 24, 2023.
Department of Commerce, Community, and Economic Development. “Alaska Sales Tax Information.” Accessed July 24, 2023.
Department of Commerce, Community, and Economic Development. “Statutes and Regulations, Business Licensing.” Accessed July 24, 2023.
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