Filing for a Business License
Each
state has their own special requirements for filing
for a license. You can find out what your state's requirements
are by either going down to the local city or state
government office, or accessing their site on the internet.
The address will be www.state.your state's 2 ltr name.us.
Alaska's is www.state.ak.us. You can also download all
the forms you'll need to file, for both the license
and registering your name.
Don't
forget to check into any special local requirements
such as state tax, city license and any special permits.
Here in Alaska fishing, hunting and mining all are closely
monitored and have special requirements. You will probably
obtain a State Business License from the Division of
Occupational Licensing, Business License Section, Department
of Commerce and Economic Development.
Here
is some information on applying for a business license
with the State of Alaska.
Do
You Need a Business License?
Any
individual, company or partnership which regularly engages
in business activity must have a business license for
that activity. Business activity includes nonprofit
as well as profit operations.
A
separate license is required for each business activity
that falls within a different line of business. One
license will cover branch offices of the same business,
as long as all the branches engage in the same activity
under the same name. On the other hand, a business which
engages in several different activities in a single
location will need more than one business license.
A
business license is not transferable. If a business
is sold, the new owner must purchase a new license.
Also, a new license must be purchased if a business
changes its activity.
Business
Name
Select
your business name carefully. Once a business license
is issued the business name cannot be changed.The
first question will be the name of your company.
Try
to make it relative to the line of the products you
will be selling. Keep it simple. Your name also serves
as an advertisement tool for your product. Also maintain
a professional look, the company name will usually be
the first thing to come to the customer's mind. So don't
start it with a bunch of A's in front of it; just to
get it in the phone book as the first name listing.
In picking a name also check to see if it is the only
one in your county with the same name. Try to make it
distinctive and one-of-a-kind. You may want to register
your company name with your state, so no one else will
be able to use it while you are setting up your business.
Registration
of Corporate Name
A
person conducting a business may register their business
name. The name can be registered for a period of five
years, and the registration is renewable. All corporate,
reserved, and registered corporate and business names
are checked for availability. This is a good idea, it
will keep someone else from using your name should there
be some time lag in renewing your business licensees.
Address
Another
question that should be on all business license applications
is your address. You would do better not to have a P.O.
Box as your business' main address. Many people don't
really want to do business with a P.O. Box, but would
rather see that you are more permanent, in a real building.
Another option is to go to mailbox unlimited or another
agency that gives you a street and suite number for
the address of your P.O. Box.
This is an issue in rural Alaska as there isn't door
to door delivery available, and most do not have house
numbers.
Line
of Business and Activities
Most
states have a business code to identify what kind of
business you are in. Select the 2-digit Line of Business
in which you intend to engage. The federal government
publishes a manual called the North American Industrial
Classification System which the division uses for guidance
in establishing the Lines of Business. A business license
permits the owner to engage in the activities listed
within a single assigned Line of Business. Once a Line
of Business is selected, choose a 4-digit or 6-digit
activity code within the Line of Business that describes
the Primary activity, and Secondary activity (if any)
of your business.
Additional
Licenses May Be Required
In
addition to state business licenses, some activities
require professional licenses or other federal, state,
or local permits. Contact your local government for
municipal license information. If you engage in an activity
with a 6-digit code, a state occupational license is
required before a business license will be issued for
your work. If a state occupational license is required,
the license type, name of one license holder, his or
her license number and position in the business must
be written on the business license application. In some
cases, the owner of the business must be the licensee.
Type
of Business
If a business is not a legally
recognized corporation or partnership, it is a sole
proprietorship. A
corporation does not legally exist until a Certificate
of Incorporation or Certificate of Authority is issued
by the state. More
information on choosing the type of business that is
best for you.
Social
Security Number or EIN
The
division uses these numbers to correctly identify people
when there are mismatches, misspellings, or other confusing
information in our computer files. They are optional.
If you provide a SSN, it will be deleted from public
documents, but may be given to other government agencies.
Owner
Name
If
the business is a corporation or LLC, print the holding
corporation’s legal name. This may be the same as the
business name. If the business is a sole proprietorship,
print the owner’s legal name. If the business is a partnership,
LLP or LP, print the social security number of the primary
partner and names of the first two partners. If there
are more than 2 partners, please attach a complete list
of partner names.
Fees
Fees
are nonrefundable and must be sent with the application
or it will not be processed. Each state has their own
set of fees, and that information will be included with
the business application.
Exemptions
If
you hold or should hold one of the following licenses,
you do not need a business license in accordance with
Alaska
Statutes. Check to see what applies with your state.