Starting a business in Alaska takes a bit more than just having a great idea—along with officially forming your company, you’ll need to obtain any necessary business licenses and permits before you can legally begin operations. Failing to do so can land your business in a lot of hot water, leading to things like fines, penalties, and, potentially, the closure of your business.
But what licenses and permits do Alaska business owners need, and how do you get them? In this in-depth guide, we’ll go over everything you need to know about how to get business licenses and permits in Alaska.
The main point of business licenses and permits is to make sure that companies comply with local, state, and federal regulations. Proving compliance with specific regulations is typically part of the process for obtaining these licenses/permits, and you’ll have to maintain compliance to keep getting them renewed.
Licenses grant businesses the authority to operate in a specific area, while permits typically regulate more specific activities—such as health or safety practices. Many Alaska businesses will need both, so it’s highly important to do your research ahead of time and determine your business’s specific requirements.
There are key differences between licenses and permits:
For example, a restaurant in Alaska will need a business license to operate legally in the state, but it will also require health permits before it is able to serve food to customers.
There are two main factors that determine the type of licenses and permits that a business in Alaska needs to legally operate: its location and its business activities.
Both state and local authorities may have their own requirements, so it’s important to check with both. Here’s a quick breakdown of the types of business licenses you may be required to obtain:
Almost all businesses in Alaska must obtain a general business license from the Alaska Department of Commerce, Community, and Economic Development (DCCED). This license gives you permission to operate within the state.
You can visit the Alaska Department of Commerce website to learn more and to apply for a general business license.
Depending on your business’s location (city or borough), you may also need a local business license or permit. Contact your local borough or municipality to learn about specific licensing requirements.
In addition to state/local licenses, your business may also be required to obtain specialized permits. Whether or not this is required (and which permits are required) will depend on your specific business operations. But a few common permits that businesses in Alaska are often required to have include ones like:
For a comprehensive list of federal licenses, check out the Small Business Administration (SBA) federal licenses and permits page.
While the exact steps required to obtain business licenses and permits in Alaska will depend on the specific licenses and permits you need, here is the general process for both state and federal licenses:
Start by identifying what type of licenses and permits your business requires. This includes both state and federal licenses:
You can find more information and application forms for Alaska’s business licenses on the DCCED website. For federal licenses, consult the SBA’s federal licensing page.
Once you’ve determined which licenses and permits your business needs, the next step is to gather and submit all required documents (and, in some cases, pay the associated fees). Here’s what the process looks like for most Alaska state business licenses:
Complete the application form on the DCCED website.
Provide details about your business structure (e.g., LLC, sole proprietorship).
Submit identification and proof of business location.
As for application fees, these will vary from one license to another, but an Alaska General Business License typically costs $50 for a one-year license (or $100 for two years).
For federal licenses, the application process and fees required will depend on the license and the agency it comes from. For example, applying for an alcohol license through the TTB requires a process similar to the one outlined for Alaska state business licenses, where you will be required to submit information about your business and wait for approval.
After you submit your application, you can track its status through the DCCED website (or the relevant federal agency for federal licenses). Approval times will vary, but, generally speaking, state-level licenses are usually processed within 10-15 business days. Federal licenses, meanwhile, can often take several weeks or more.
Business licenses and permits often require renewal. Alaska’s General Business License, for example, must be renewed annually or biennially, depending on the type of license you initially purchased. Missing a renewal deadline can result in fines or the suspension of your business operations, so be sure to track expiration dates and renew on time.
Acquiring the necessary business licenses and permits is a key part of starting a new company in Alaska. Since the exact licenses and permits your business needs will vary depending on where it’s located and the nature of its operations, it’s important to do your research and determine the requirements that apply to you before starting business operations.
Thankfully, most of the licenses and permits required for Alaskan businesses are relatively simple and straightforward to obtain. By following the steps outlined in this guide, you should be well on your way to getting everything you need to legally operate your business.
You never want to begin operating your business before you’ve acquired the necessary licenses and permits. Doing so can lead to some stiff consequences, including things like fines, penalties, or even business closure. Along with initially acquiring the right licenses and permits, it’s also important to make sure they are renewed on time.
Yes, even sole proprietors in Alaska must obtain a general business license from the DCCED. Depending on the operations you engage in, you may be required to obtain certain state/federal permits as well. For example, a sole proprietor operating a food truck will still need to acquire the appropriate health and safety permits.
Yes, Alaska business licenses need to be renewed either annually or every two years. Which option applies to you will depend on the type of license you initially applied for.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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