Most businesses operating in Alaska need a state business license. This guide will help you understand the licenses and permits required, the associated costs, and necessary steps for starting your business in the Final Frontier.
Essential Licenses and Requirements
The license is issued by the Corporations, Business & Professional Licensing office and is good for one year. In addition to the business license, certain businesses need professional licenses – this includes doctors, engineers, architects, and others. The Division of Corporations, Business and Professional Licensing issues these special licenses.
Are business licenses free in Alaska? Not typically, but Alaska is currently waiving the usual $50 fee to help new business owners during the COVID-19 pandemic. However, it’s unclear how long this will last.
Steps and Costs for Licensing
Before applying for a license, it’s important to:
- What licenses and permits you need
- What you need before applying
- Application steps
To operate a business anywhere in Alaska, ensure you comply with the law by having the right licenses and permits. For example, most Alaska businesses need a state business license annually, which usually costs $50. For online businesses that ship to Alaska, obtaining a sales tax certificate is necessary to collect sales tax.
For foreign LLCs looking to operate in Alaska, you’ll need to file a Certificate of Registration of Foreign Limited Liability Company online or by postal mail, with a $350 filing fee. Appoint an Alaska agent for service of process to ensure compliance.
Summary
- Alaska business license fee is typically $50 but is currently waived due to COVID-19.
- Professional licenses are required for certain professions.
- A DBA is necessary if using a different business name.
- For sole proprietors in Alaska, no formal setup process or fees are required.
- Annual state licensing, sales tax certification for online sellers, and biennial reports are some of the regulatory requirements.
- Businesses must check for additional permits based on their industry on the Alaska DCCED official website.