Dry-etching of laser facets is commonly used for (InAl)GaN/sapphire-based structures since the epitaxial planes of the nitride layers are rotated with respect to the substrate planes making cleaving impractical. To achieve steep and smooth facets by chemically assisted ion beam etching, a 3-layer resist system is developed for patterning. Characterization by scanning electron microscopy and atomic force microscopy shows facets with root-mean-square roughnesses of 7 nm and inclination angles of 2-4 degrees. Optically pumped lasers yield low threshold excitation densities for fully doped separate confinement heterostructure lasers.