How to Get an Alaska Business License

Do you need a business license in Alaska?

Depending on the type of business you have, you may need to get local, state, and/or federal business licenses. 

Alaska state

Alaska requires most for-profit and nonprofit businesses to get a state-level business license in order to operate in the state.

It doesn’t matter if you have a physical location or presence in Alaska; applicable businesses that conduct any type of business activity in Alaska are required to have an Alaska business license.

Certain businesses—such as fisheries, insurance businesses, and national banks—may be exempt from having a state business license, but may need to meet other program or agency requirements. 

To find out the specific requirements for your unique business, you can check the Alaska Business Licensing Statutes and Regulations or contact the Alaska Department of Commerce via email at businesslicense@alaska.gov. 

Local

Depending on your area and business type, you may also be required to apply for certain licenses or permits on the local level. However, it may require some digging to figure out exactly what types of local licenses you need to operate your business in a particular location or comply with industry requirements. 

For example, if you have a property rental business, you will need an Alaska state business license to collect rental income, but you may also need an additional local business license or operating permit depending on your location. For instance, owners of rental properties within the city of Tukwila, Alaska are required to have a city business license and have all rental units inspected before renting them out, plus once every four years in order to rent properties in city limits. 

Check with your city hall or county clerk to determine the local license requirements for your specific location or business. 

Federal

Businesses in certain industries may also be required to obtain federal licenses. For example, businesses that manufacture alcohol, operate aircraft, or sell guns must obtain a federal license before engaging in business activities. 

How to get a business license in Alaska in 8 steps

Getting a business license in Alaska can involve choosing a business structure, selecting a business name, getting an employee identification number (EIN), registering to pay sales tax, and applying for local, state, and federal licenses and permits as necessary. 

Step 1: Choose a business structure and name

Before you get a business license, you’ll need to set up your business. Starting your business involves researching and deciding on a business name and thinking about how you want to structure your business.

The right business structure for your company depends on your business’ unique needs, including the extent of legal protection you need and how you want your business to be taxed.

Common business entity types include the following:

• Sole proprietorship
• Partnership
• Corporation
• Limited liability company (LLC)

Step 2: Get an Alaska Entity Number

Corporations, LLCs, limited partnerships (LPs), and limited liability partnerships (LLPs) need to register with the Corporations Section to get an Alaska Entity Number. These businesses will need to put their Alaska Entity Number on their business license application. Note that entity status can affect a business license, so it’s important to keep your business in good standing with the Corporations Section. 

Sole proprietors and general partnerships do not need to register with the Corporations Section. 

Step 3: Get an EIN

An EIN enables you to hire staff, pay sales and excise taxes, change your business structure or ownership, and administer specific trusts, retirement plans, or estates. 

The IRS suggests you form legal entities such as LLCs, partnerships, corporations, and tax-exempt organizations before applying for an EIN to ensure timely processing of your application. 

You can get an EIN for free by applying via the IRS’ website, or you can pay to have an online EIN service file an application on your behalf.

Step 4: Apply for professional licenses 

Businesses in certain regulated industries—including acupuncturists, barbers, construction contractors, and nurses—are required to obtain professional licenses. The status of a professional license can impact a business license, so it’s important to take the necessary steps to keep your professional license up-to-date and valid. 

Step 5: Apply for a state business license

To get your license as soon as possible, you can apply online for an Alaska state business license. If you’re willing to wait 10–15 days or longer, you can mail in a paper application.

You will need to submit the following information on your business license application:

• Business name
• Owner type (entity or individual)
• Entity number
• Line of business
• North American Industry Classification System (NAICS) code(s) (a 6-digit code that categorizes your business activity)
• Mailing and physical addresses
• Email address
• Phone number
• Endorsements (applicable if your business sells tobacco, nicotine, or electronic smoking products)
• Telemedicine business registration (if applicable)
• The name and title of the person completing the application 

Step 6: Register with the Alaska Remote Seller Sales Tax Commission

In addition to obtaining an Alaska state business license, some businesses may also be required to register with the Alaska Remote Seller Sales Tax Commission (ARSSTC).

Here are the ARSSTC requirements for the following types of businesses:

• Businesses that have a physical presence in Alaska and in a taxing jurisdiction must register and file in-person transactions with the jurisdiction.
• Businesses that have a physical presence in Alaska, don’t have a physical presence in a taxing jurisdiction, don’t conduct remote sales into a taxing jurisdiction, and have more than $100,000 in annual sales in Alaska over the previous year must register and file remote sales with the ARSSTC. 
• Businesses that conduct remote sales in the state, have over $100,000 in annual sales in Alaska during the previous year, and don’t have a physical presence in Alaska must register and file remote sales with the ARSSTC.

Physical presence can take the form of an office, warehouse, storefront, inventory, service or sales representative, or rental of equipment or property.

Step 7: Apply for local permits 

The next step is finding out whether you need to obtain any local permits. Contact your municipality to find out how to meet local requirements and pay any applicable fees.

Step 8: Apply for federal licenses

Businesses in certain industries are required to get licenses on the federal level. For example, businesses involved in agriculture need to get a license from the U.S. Department of Agriculture (USDA), while those that sell guns need to obtain a license from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). 

After getting your Alaska business license

Alaska state business licenses expire every year on December 31. To stay compliant, you will need to renew your business license annually.

It’s important to fulfill requirements for local and federal licenses and permits as well.

Remember that your Alaska business license can be impacted if you fail to comply with professional licensing requirements or lose good standing as an entity.

Be sure to update your business license to reflect any major changes (such as an owner’s legal name change or address change) and notify relevant authorities of any modifications.

Getting an AK business license the easy way

Need help figuring out which local, state, and federal business licenses your business needs? LegalZoom can assist you in finding and managing required business licenses. Our business license report and management service identifies the specific licenses your business needs and provides access to required license and permit applications.

We’ll notify you about any updates to your license report requirements and upcoming renewal deadlines, so you can spend time focusing on your business instead of stressing about compliance. 

FAQs

What should I do before getting a business license?

Before getting a business license you should decide how you will structure your business and pick a name for your business. Conducting an Alaska business search can help you find out if there are any other businesses operating under your desired business name. 

How much is a business license in Alaska?

An Alaska state business license costs $50 per year. Sole proprietors who are veterans or age 65 or older can get an Alaska business license for $25 per year.

The cost of various professional, local, and federal licenses depends on the license type. 

How long does it take to get a business license in Alaska?

If you apply online, you can get your Alaska state business license immediately. The standard processing time for paper applications turned in between March and September is 10 to 15 business days. Processing times are delayed for paper applications turned in between October and February. 

How do I get a copy of my Alaska business license?

You can get free copies of your state of Alaska business license certificate online by visiting the Alaska Business Licensing website.

You can also submit a Business License: Copy of Certificate Request form by mail or fax along with a $5 fee per copy.