The Complete Guide to Alaska Business Licenses
Alaska is one of the few states with a general state business license. Almost every business needs one from the Division of Corporations, Business and Professional Licensing (CBPL). Alaska has no state sales tax, but some boroughs and cities levy their own. This guide explains each step for a new Alaska business.
Step 1: Form the LLC
File Articles of Organization with the CBPL Corporations Section for $250. Alaska LLCs file a biennial report for $100. See the Alaska LLC guide for every formation step.
Step 2: State business license
Apply to CBPL for an Alaska business license before you start trading. The fee is $50 a year; state regulations also allow a two-year license for $100. Sole proprietors aged 65 or older and disabled veterans pay $25. Operating without a license can bring a civil fine of up to $300. Some activities also need an endorsement on the license (for example tobacco or alcohol-related sales), at $100 each.
Step 3: Local sales taxes
Alaska has no state sales tax and no state personal income tax. Many boroughs and cities levy their own sales tax, so check with the borough or city where you sell before you open.
Step 4: Contractor and professional licenses
Construction contractors need both a contractor license from CBPL Professional Licensing and the state business license. Each contractor posts a bond: $25,000 for a general contractor, $20,000 with a residential endorsement, $10,000 for mechanical or specialty contractors and $5,000 for handymen, who are limited to projects of $10,000 or less. CBPL also licenses many professions.
Hiring staff and business names
Employers register for unemployment insurance with the Alaska Department of Labor Employment Security Tax section. To trade under another name, file a business name registration with the Corporations Section for $25; the name must match your business license.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | CBPL Corporations Section | $250; $100 biennial report |
| State business license | CBPL | $50 a year |
| Contractor license and bond | CBPL Professional Licensing | Bond $5,000–$25,000 |
| Business name registration | Corporations Section | $25 |
Frequently Asked Questions
Does Alaska require a business license?
Yes. Almost every business needs an Alaska state business license from the Division of Corporations, Business and Professional Licensing.
How much is an Alaska business license?
$50 a year. Sole proprietors aged 65 or older and disabled veterans pay $25, and each endorsement costs $100.
Does Alaska have sales tax?
There is no state sales tax, but many boroughs and cities levy a local sales tax.
How much does it cost to form an LLC in Alaska?
The Articles of Organization cost $250, and the biennial report is $100.
Do contractors need a license in Alaska?
Yes. Contractors need a CBPL contractor license and bond plus the state business license; the bond ranges from $5,000 for handymen to $25,000 for general contractors.