How to get an Alaska business license
Businesses starting out in Alaska need a state license, possibly local and professional. Here’s what you should know
Published on Monday 4 August 2025
Table of contents
Key takeaways
- Alaska requires all businesses (with limited exceptions) to get a state business license.
- You may also need local and professional/occupational licenses.
- You can apply online or by mail, and the fee is just $50.
- Remember to renew your license annually.
What is an Alaska business license?
An Alaska business license is your ‘permission granted’ to operate a business in the state. Alaska requires almost all businesses to get a state business license and, depending on the type of business you run and where you’re running it, you may need professional and local business licenses too.
Having your Alaska small business licenses keeps you compliant with state and local regulations, so you avoid penalties and can focus on running your business
Types of Alaska business licenses
You may need some or all of the following licenses to do business in Alaska:
Alaska state business license
All businesses operating in Alaska must obtain a state business license from the Department of Commerce Community and Economic Development (DCCED). Remote businesses (businesses without a physical presence in Alaska) with more than $100,000 a year in Alaska sales also need an Alaska business license so they can collect sales tax from customers.
Even if all your sales are in areas without sales tax, you still must get an Alaska business license if your sales are over the threshold.
Businesses in certain industries don’t need a general state license. There are exceptions for businesses like fisheries, insurance, mining, investment clubs, banks, credit unions, and certain businesses that sell liquor. Businesses in these categories must obtain state licenses from other entities.
Professional and occupational licenses
Alaska requires professionals ranging from nail techs to doctors to electricians to have professional or occupational licenses. Most professions in highly regulated industries such as healthcare, finance, and construction require licenses, even if they’re already licensed professionals in another state.
There are exceptions, though – for example, life coaches don't need professional licenses, but family and marriage therapists, psychologists, and professional counselors do.
Conduct an Alaska business license search with the DCCED to see which professional licenses you need. You may also need an Alaska trade license depending on the type of services you provide.
Local business licenses and permits
Your local area may require a business license, Alaska business permit, and potentially even a sales tax permit. Check the requirements in your area at city and borough websites, and check your local zoning laws to make sure you can legally operate in your location – you can’t operate most businesses in residential areas.
How to get a business license in Alaska
If you're starting a business, here's what to do to complete your Alaska business registration and get licensed.
1. Choose your business structure
Your business structure affects how the business is taxed, your liability for business debts, and whether you can sell shares in the company. Here are the options:
- Sole proprietor – the business and its owner exist as a single entity. All profits are taxed as self-employment income, and the owner is solely responsible for the liabilities of the business. Although the IRS lets married couples operate sole props together.
- Partnership – two or more people who operate a business together. All profits flow to the partners and are taxed as self-employment income. Partners are generally responsible for the business's liabilities, although this varies: limited partnerships (LPs) can be set up to make only certain partners liable for business debts, while under limited liability partnerships (LLPs) no partners are personally liable.
- Limited liability company (LLC) – an LLC creates a legal distinction between the business and its owners, so owners have some protection against the business’s debts. You have some choices on your taxes too: single-member LLCs are taxed as sole proprietors, multi-member LLCs are taxed as partnerships. LLCs can also choose to be taxed as S-corporations, which increases your administrative duties but can reduce your self-employment tax.
2. Make sure you have the right professional licenses
Most businesses will also need to complete an Alaska EIN application to get a federal employer identification number for tax purposes.
Before registering your business, make sure you have the right licenses for your profession. Many professions that don't require licenses in other states – for example, handymen – need one in Alaska.
3. Make sure you have the right professional licenses
Corporations, LLCs, LPs, LLPs, etc must get an entity number from the State of Alaska Corporations Section. When applying for a number, list your Alaska business entity type and a registered agent with a physical and mailing address to receive communication on your behalf. You’ll also need to stay current with your Alaska corporate filings to remain compliant.
4. Apply for an Alaska business license
It's time to fill out your Alaska business license application. You can apply online or by mail using Form 08-4181. The DCCED deals with online applications quickly, while mail applications take about 3 weeks to process – but will take longer if you apply between October and February.
For the state license, you need:
- Your business name
- Whether the business is an individual or an entity (sole trader, partnership, LLC, or corporation)
- The entity number if applicable
- Your line of business
- Contact details: physical and mailing address, email, and phone number
- The name of the person completing the application
You also need a North American Industry Classification System (NAICS) number – this is public information you can easily get online – just search for your industry and "NAICS".
Here’s the DCCED’s main licensing page for more info.
5. Get local licenses and permits
Once you're licensed on the state level, line up local licenses and permits. Check with your city and borough to learn the requirements in your area. Ask about business licenses, and local rules on zoning, signage, health department requirements, and anything else that may affect your operations.
6. Renew your license on time
To maintain your Alaska business license , you need to renew it annually. Renew it online or through the mail with Form 08-4617. If you forget to renew, you can apply by mail up to 2 years after missing the deadline. Otherwise, you need to apply for a new license.
You also need a new license if you change your business name or if a new owner buys the business. Alaska business license renewal costs the same as getting a new license, but if you renew late, you may have to pay for multiple years at the same time – see the next section.
To start your licensing journey, make a checklist of everything you need.
Alaska business license costs and renewal requirements
New Alaska business licenses cost $50. Renewals are $50 for 1 year or $100 for 2 years. If you renew late, you may need to pay for multiple years – for example, if you got your license in 2023, forgot to renew in 2024, and renew in 2025, you will pay $100 to cover the fee for both 2024 and 2025.
These fees tend to stay the same for years, but check with the DCCED's Division of Corporations, Business, and Professional Licensing for updated fees. Local governments charge a variety of fees for their licenses.
You might be eligible for a discount. If you’re a sole proprietor and either 65 years or older, or you're a veteran with a service-related disability, you get a discounted rate of $25. The discounted rate applies to new and renewed licenses ($25 for a single year or $50 for two years).
Common mistake to avoid when applying for an Alaska business license
To smooth the licensing process, keep these tips in mind.
- Review the DCCED’s requirements – check out their licensing FAQs for details about situations that relate to your circumstances.
- Get your entity number before applying for a state business license – corporations, LLCs, and partnerships can't complete the state application without one.
- Double-check your application – licensing fees are non-refundable, so make sure your application is error-free.
- If applying by mail, include the application fee to avoid delays.
- Apply either online or by mail – not both. Double applications slow the process down.
- Remember local license requirements – you might need local permits as well as the state license to maintain Alaska business compliance.
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FAQs on Alaska business licenses
Alaska business license requirements can get confusing. To help you out, here's a look at some of the most commonly asked questions.
I’ve missed the renewal deadline for my Alaska business license. What should I do?
If it's been less than 9 months since the deadline, you can still renew online. If it's been longer than 9 months but less than 2 years, apply through the mail and send in an annual fee that covers the years you missed and the current year. If it's been more than two years, you’ll have to apply for a new license online or by mail. So renew as early as you can.
How long will it be until I receive my Alaska business license after applying?
Online licenses are available as soon as you complete the application. Mailed applications take about 3 weeks to process, but delays are common during the busy season from October to February. So if you’re applying by mail, do it as early as you can.
What happens if I operate without the required business licenses in Alaska?
If you don't get a business license, the state can prevent you from operating your business, and penalize you in other ways, too – even criminal charges in some cases. So make sure you get the licenses you need.
How do I update my business information or make changes to my Alaska business license?
You can make small changes to your application within 30 days of applying by filling out Form 08-4733. There are other forms for more fundamental changes. To update the business address, file Form 08-4054. If the business owner's name has changed, use Form 08-4104 instead. And if your business’s NAICS code has changed, use Form 08-4731. Most other changes – for instance, if a new owner takes over – require the business to get a new business license.
Can I check the progress of my business license application in Alaska?
Yes, you have a few options: contact the DCCED to see if your application is done processing or search online yourself to see if your business license is active.
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