If you're planning to start a business in the tax haven of Alaska, you must obtain a business license. Whether you're an independent contractor with a sole proprietorship or planning to establish an LLC, you are required to secure an Alaska business license after forming your LLC.
Let's break down the process of obtaining your business license in Alaska — including the associated costs and necessary steps — so you can get your business started in the Final Frontier.
What Is a Business License?
A business license is a legal document that permits a business to operate in compliance with state, city, or county laws. Failure to acquire a business license could result in the dissolution of your business along with monetary penalties of up to $2,000 and/or criminal charges resulting in six months of prison.
Do You Need a Business License in Alaska?
Yes. You're required to have a business license in Alaska before conducting any business activity. All businesses are required to have a state business license, even if they do not have a physical location in the state.
And, depending on your industry, you may also be required to obtain a professional license or other local-level or federal licenses. To avoid breaking any laws, check to make sure you've got all your business licenses and permits covered.
How to Get a License for Your Alaska Business
You'll need to obtain your Alaska state business license from Alaska's DCCED (Department of Commerce, Community, and Economic Development). To do so, follow these steps:
1. Form Your Business
The first step is to legally form your Alaska LLC business in the state of Alaska. Make sure to choose a business name, pick a business structure, and file your incorporation paperwork before applying for your Alaska business license.
2. Gather the Required Paperwork
Gather all of your required documentation to support your Alaska business license application. This will include:
- Contact information
- Business address
- NAICS code
- Alaska Entity Number
Ensure that all the information is accurate and up-to-date. Be prepared to provide details about your business activities, ownership structure, and other relevant information.
3. Fill Out the Application
You can fill out the Alaska business license application online or you can mail a hard copy along with the required documentation. You must also:
Select the Appropriate NAICS Codes
Make sure to select the NAICS code(s) that align with your business. You may be able to choose more than one code as long as it accurately represents the business activity of your company.
Add Any Endorsements
On the application, you will be asked to provide endorsements (if applicable).
Certain types of businesses in Alaska will require an "endorsement" or additional permission or authorization in order to complete the process of acquiring a business license from the DCCED. These types of businesses typically engage in activities that require additional monitoring and regulation. These may include firearms dealers, alcohol sellers or servers, or tobacco retailers.
Endorsements in Alaska cost $100 and renew along with your Alaska business license. To ensure you've acquired all the necessary endorsements, read over Alaska's business license endorsement requirements.
4. Pay the Licensing Fees
Alaska's business licensing fee is $50.
Alaska business licenses must be renewed annually by reapplying and paying a renewal fee of $50. You can also pay for a two-year license at the same monthly cost, meaning you'd pay $100 every two years.
5. Submit Your Application
Submit the completed application along with the required documentation and payment to the DCCED. You can apply online or download the form and send it through traditional mail to:
Business Licensing Section, State Office Building
P.O. Box 110806
Juneau, AK 99811-0806
The processing time for an Alaska business license application averages between two to three weeks.
FAQs About Alaska Business Licenses
How Much Does It Cost to Get a Business License in Alaska?
A business license in Alaska costs $50 for a one-year licensing period. After that, there is an additional fee of $50 for annual renewal. Alternatively, you may apply for a two-year license at $100 and renew biyearly for $100.
|
Form Name |
Form Number |
Fee |
|
Business License: New Application (Online or PDF) |
08-4181 |
$50 per year |
|
Business License: New Endorsement on Existing License |
08-4730 |
$100 per endorsement |
|
Business License: Renewal Application (Online or PDF) |
08-4743 |
$50 per year |
|
Business License: 30-Day Allowable Change (PDF) |
08-4733 |
No charge |
|
Business License: Address Change (PDF) |
08-4054 |
No charge |
|
Business License: NAICS Code(s) Change (PDF) |
08-4731 |
No charge |
|
Business License: Owner’s Legal Name Change (PDF) |
08-4104 |
$5.00 |
For a full list of fees related to your Alaska business license, including renewal fees, change-of-address fees, and more, review Alaska's current licensing forms and fees.
Do Sole Proprietors Need a Business License in Alaska?
No. Sole proprietors are not required to obtain a business license in Alaska, but depending on the nature of the work, they may be required to obtain other permits or licenses.
How Do I Get a Business Entity Number in Alaska?
When you form your business in the state of Alaska, you are assigned a business entity number, which you must add to your business license application.
Do I Need a Business License to Sell Crafts in Alaska?
Yes. If your Alaska business sells crafts, you will need a business license, which costs $50 yearly. However, the specific requirements may vary depending on the location and scale of your craft business. For help knowing exactly which forms you must submit, take advantage of Incfile's Business License Research Package.
Do I Need a Business License to Sell Online in Alaska?
Yes. Even if you do not have a physical shop in Alaska, if you formed your business in the state, you are required to obtain a business license for your online shop.
When Does My Alaska Business License Need to Be Renewed?
You will need to renew your Alaska business license every one to two years. Renewals cost $50 per year.
If you acquired your business license before October 1, it will expire on the last day of the year. If, however, your business license was approved after October 1, it will not need to be renewed until December 31 of the following year, giving you a few extra months of operation.
For example, if you received your business license on April 18, 2023, your license will expire on December 31, 2023, requiring renewal. If, however, you received your business license on November 7, 2023, your license will not expire until December 31, 2024.
|
Form Name |
Form Number |
Fee |
|
New Business Name Registration (Online or PDF) *Exclusive DBA business name for a five-year period |
08-557 |
$25 |
|
Renewal Business Name Registration *To be completed on the fifth calendar year |
08-560 |
$25 |
Let Incfile Help
Whether you're in the initial stages of forming your business or you need help getting your Alaska business license, Incfile's experienced team can assist. Use our Business License Research Package to uncover all the potential business licenses your business could need at the state and federal levels.
Peter Mavrikis
Peter Mavrikis is an author and editor with over 25 years of experience in publishing. He has worked as the Editorial Director for Barron’s Educational Series, as well as Kaplan Test Prep, where he ran the test prep, foreign language, and study guide divisions. Peter has also written several books on history, exploration, science, and technology.
