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. (See
the list of exemptions from business licensing).
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.
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.
Here
is a sample of the business lines. Remember don't
use these numbers unless you are applying in the state
of Alaska. This is copied from their business licenses
site, there you can click on the business line and be
directed to a different page with all the 4-6 digit codes
for the activity code within that line.
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.
