diff --git a/backend/src/ee/services/license/license-fns.ts b/backend/src/ee/services/license/license-fns.ts
index 4231ba3c23..09ff9e1081 100644
--- a/backend/src/ee/services/license/license-fns.ts
+++ b/backend/src/ee/services/license/license-fns.ts
@@ -7,7 +7,7 @@ import { BadRequestError } from "@app/lib/errors";
 import { logger } from "@app/lib/logger";
 import { UserAliasType } from "@app/services/user-alias/user-alias-types";
 
-import { TFeatureSet, TLicenseKeyConfig, TOfflineLicenseContents } from "./license-types";
+import { LicenseType, TFeatureSet, TLicenseKeyConfig, TOfflineLicenseContents } from "./license-types";
 
 export const isOfflineLicenseKey = (licenseKey: string): boolean => {
   try {
@@ -32,10 +32,10 @@ export const getLicenseKeyConfig = (
 
   if (licenseKey) {
     if (isOfflineLicenseKey(licenseKey)) {
-      return { isValid: true, licenseKey, type: "offline" };
+      return { isValid: true, licenseKey, type: LicenseType.Offline };
     }
 
-    return { isValid: true, licenseKey, type: "online" };
+    return { isValid: true, licenseKey, type: LicenseType.Online };
   }
 
   const offlineLicenseKey = cfg.LICENSE_KEY_OFFLINE;
@@ -43,7 +43,7 @@ export const getLicenseKeyConfig = (
   // backwards compatibility
   if (offlineLicenseKey) {
     if (isOfflineLicenseKey(offlineLicenseKey)) {
-      return { isValid: true, licenseKey: offlineLicenseKey, type: "offline" };
+      return { isValid: true, licenseKey: offlineLicenseKey, type: LicenseType.Offline };
     }
 
     return { isValid: false };
diff --git a/backend/src/ee/services/license/license-service.ts b/backend/src/ee/services/license/license-service.ts
index 080556ca57..3bbd58831a 100644
--- a/backend/src/ee/services/license/license-service.ts
+++ b/backend/src/ee/services/license/license-service.ts
@@ -25,6 +25,7 @@ import { TLicenseDALFactory } from "./license-dal";
 import { getDefaultOnPremFeatures, getLicenseKeyConfig, setupLicenseRequestWithStore } from "./license-fns";
 import {
   InstanceType,
+  LicenseType,
   TAddOrgPmtMethodDTO,
   TAddOrgTaxIdDTO,
   TCreateOrgPortalSession,
@@ -87,7 +88,7 @@ export const licenseServiceFactory = ({
   );
 
   const onlineLicenseKey =
-    licenseKeyConfig.isValid && licenseKeyConfig.type === "online" ? licenseKeyConfig.licenseKey : "";
+    licenseKeyConfig.isValid && licenseKeyConfig.type === LicenseType.Online ? licenseKeyConfig.licenseKey : "";
 
   const licenseServerOnPremApi = setupLicenseRequestWithStore(
     envConfig.LICENSE_SERVER_URL || "",
@@ -135,7 +136,7 @@ export const licenseServiceFactory = ({
         return;
       }
 
-      if (licenseKeyConfig.isValid && licenseKeyConfig.type === "online") {
+      if (licenseKeyConfig.isValid && licenseKeyConfig.type === LicenseType.Online) {
         const token = await licenseServerOnPremApi.refreshLicense();
         if (token) {
           await syncLicenseKeyOnPremFeatures(true);
@@ -146,7 +147,7 @@ export const licenseServiceFactory = ({
         return;
       }
 
-      if (licenseKeyConfig.isValid && licenseKeyConfig.type === "offline") {
+      if (licenseKeyConfig.isValid && licenseKeyConfig.type === LicenseType.Offline) {
         let isValidOfflineLicense = true;
         const contents: TOfflineLicenseContents = JSON.parse(
           Buffer.from(licenseKeyConfig.licenseKey, "base64").toString("utf8")
@@ -188,7 +189,7 @@ export const licenseServiceFactory = ({
   };
 
   const initializeBackgroundSync = async () => {
-    if (licenseKeyConfig?.isValid && licenseKeyConfig?.type === "online") {
+    if (licenseKeyConfig?.isValid && licenseKeyConfig?.type === LicenseType.Online) {
       logger.info("Setting up background sync process for refresh onPremFeatures");
       const job = new CronJob("*/10 * * * *", syncLicenseKeyOnPremFeatures);
       job.start();
diff --git a/backend/src/ee/services/license/license-types.ts b/backend/src/ee/services/license/license-types.ts
index 1fd11fabf4..8897eaabcf 100644
--- a/backend/src/ee/services/license/license-types.ts
+++ b/backend/src/ee/services/license/license-types.ts
@@ -137,6 +137,11 @@ export type TOrgInvoiceDTO = TOrgPermission;
 
 export type TOrgLicensesDTO = TOrgPermission;
 
+export enum LicenseType {
+  Offline = "offline",
+  Online = "online"
+}
+
 export type TLicenseKeyConfig =
   | {
       isValid: false;
@@ -144,5 +149,5 @@ export type TLicenseKeyConfig =
   | {
       isValid: true;
       licenseKey: string;
-      type: "offline" | "online";
+      type: LicenseType;
     };
diff --git a/backend/src/server/routes/v1/admin-router.ts b/backend/src/server/routes/v1/admin-router.ts
index 8586336429..f6ec36f6f0 100644
--- a/backend/src/server/routes/v1/admin-router.ts
+++ b/backend/src/server/routes/v1/admin-router.ts
@@ -10,6 +10,7 @@ import {
   UsersSchema
 } from "@app/db/schemas";
 import { getLicenseKeyConfig } from "@app/ee/services/license/license-fns";
+import { LicenseType } from "@app/ee/services/license/license-types";
 import { getConfig, overridableKeys } from "@app/lib/config/env";
 import { crypto } from "@app/lib/crypto/cryptography";
 import { BadRequestError } from "@app/lib/errors";
@@ -67,7 +68,7 @@ export const registerAdminRouter = async (server: FastifyZodProvider) => {
       const serverEnvs = getConfig();
 
       const licenseKeyConfig = getLicenseKeyConfig();
-      const hasOfflineLicense = licenseKeyConfig.isValid && licenseKeyConfig.type === "offline";
+      const hasOfflineLicense = licenseKeyConfig.isValid && licenseKeyConfig.type === LicenseType.Offline;
 
       return {
         config: {
diff --git a/backend/src/services/offline-usage-report/offline-usage-report-service.ts b/backend/src/services/offline-usage-report/offline-usage-report-service.ts
index 92360ca52d..f05c734c15 100644
--- a/backend/src/services/offline-usage-report/offline-usage-report-service.ts
+++ b/backend/src/services/offline-usage-report/offline-usage-report-service.ts
@@ -35,7 +35,8 @@ export const offlineUsageReportServiceFactory = ({
 
     if (!hasOfflineLicense) {
       throw new BadRequestError({
-        message: "Offline usage reports are not enabled. An offline license must be configured in LICENSE_KEY."
+        message:
+          "Offline usage reports are not enabled. Usage reports are only available for self-hosted offline instances"
       });
     }
 
diff --git a/docs/self-hosting/ee.mdx b/docs/self-hosting/ee.mdx
index ea32c416ce..9c3e7d644c 100644
--- a/docs/self-hosting/ee.mdx
+++ b/docs/self-hosting/ee.mdx
@@ -14,7 +14,7 @@ This guide walks through how you can use these paid features on a self-hosted in
         Once purchased, you will be issued a license key.
     </Step>
     <Step title="Activate the license">
-        Assign the issued license key to the `LICENSE_KEY` environment variable in your Infisical instance. The system will automatically detect whether the license is online or offline.
+        Set your license key as the value of the **LICENSE_KEY** environment variable within your Infisical instance.
 
         <Tabs>
             <Tab title="Regular License">
@@ -33,7 +33,7 @@ This guide walks through how you can use these paid features on a self-hosted in
             - The system will automatically detect that it's an offline license based on the key format.
 
             <Note>
-                <b>Backwards Compatibility:</b> The `LICENSE_KEY_OFFLINE` environment variable is still supported for backwards compatibility, but we recommend using `LICENSE_KEY` for all license types going forward.
+                While the LICENSE_KEY_OFFLINE environment variable continues to be supported for compatibility with existing configurations, we recommend transitioning to LICENSE_KEY for all license types going forward.
             </Note>
             </Tab>
         </Tabs>