How to Start a Business and Form Your LLC in Alaska

Alaska Business Facts and Environment

AK Business Facts

Economy in the State of the Last Frontier has been identified primarily by two major industries, petroleum and gas, and the federal government. These two sectors are flanked by all the other services and industries. 2004-2006 reports state that jobs within the federal government amounted to 135,000 in Alaska. 110,000 jobs in the gas and petroleum sector was combined with jobs for all other industries and services to boast a total of 122,000 Alaskan jobs.

After natural gas, seafood is a staple industry in Alaska. Salmon, cod, pollock and crab are fished in mass quantities. Just the 2013 fishing season alone brought fisherman a total of 5.8 billion pounds of seafood! The fishing industry in Alaska generates almost 2 billion dollars annually.

In comparison to natural gas and seafood, a much smaller amount of revenues are generated through agriculture. Most farmed goods and livestock product stays within Alaska and serves those live there. Most food and general goods are imported and the Last Frontier depends on areas outside its boundaries for manufactured goods.

Major Companies Headquartered in Alaska

Alaska is home to several large businesses, including Bristol Bay Native, Chugach Alaska, Afognak Native, Yukon-Kuskokwim Health, Ukpeagvik IOoOupiat, NANA Dev and Lynden.

Startup Environment

Alaska has the potential for a sustainable and strong future. The need to support the growth and development of new and emerging businesses is imperative. The use of promotional activities, business assistance, and research can sustain and accelerate business growth. Such approach has helped strengthen the seafood and visitor industries in Alaska.

Step 1: Decide on a Business Structure

There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.

• A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
• A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
• An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.

Step 2: Pick a Business Name

Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Alaska, but we highly recommend you do the following before searching Alaska state databases:

• Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
• Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
• Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself.

TIP: search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.

• Make sure your company name choice is available by searching the Alaska Business Entity Database and doing a name search on the State of Alaska website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).

NOTE: Familiarize yourself with the Alaska naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.

Restrictions on Alaska Business Name & Business Purpose

• An unincorporated business is not permitted to use “incorporated” or “corporation” as part of its name, while an incorporated name should contain “corporation”, “company”, “incorporation”, or “limited”, or an abbreviation, as part of its name.
• A business name does not suggest that the organization is a governmental unit unless they are a governmental unit.

Step 3: Register the Business

Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and picked your business name, here are the requirements to register your business in Alaska.

How to form an LLC in Alaska

• File the “Articles of Organization” with the Alaska Secretary of State.
• Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLCs”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
• Hire a professional Registered Agent.
• Hold an Organizational Meeting to take contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more (yes, even for 1 person LLCs).
• Optional: Elect S-Corporation status with the IRS by filing IRS Form 2553. Yes, even an LLC can choose to be taxed as an S-Corporation (or even a C-Corporation). 

TIP: Speak to your tax advisor about this important issue because it adds complexity to your LLC most people would rather avoid.

• Optional: Create an operating agreement. This is a legal document that outlines ownership and operating procedures of your LLC.

How to Incorporate in Alaska

• File the “Articles of Incorporation” with the Alaska Secretary of State.
• Hold an Organizational Meeting to properly organize the corporation, take contributions from the shareholders, elect directors and officers, issues stock, adopts the Corporate Bylaws and more.
• Hire a professional Registered Agent.
• Optional: Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.

Considerations when incorporating or forming an LLC in Alaska

The Alaska Secretary of State could take anywhere from 10 to 15 days for mail filings to process the paperwork. This may increase during peak periods.

• A Registered Agent is required for every Alaska Corporations and LLC. The chosen registered agent must have a physical street address in Alaska.

TIP: Check our order form to see how long Alaska is currently taking to process regular and expedited orders.

• A professional Registered Agent who will provide their address and forward any important documents to you. This is convenient if you have to move, since you won’t have to file forms or pay fees, (just update your address with your agent).

How to File a DBA in Alaska

• There are requirements when filing a DBA in Alaska.
• Pay a $25 registration fee to the Division of Corporations Section of the State of Alaska.
• Provide the corporate owner’s name, address, and signature on the application.
• Processing time for a DBA registration could take anywhere from 10 to 15 days.

Ready to Start Now? Let Us Do The Work

Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.

• Learn more about our business formation service
• Read our verified reviews and 100% Satisfaction Guarantee
• Contact our friendly support team if you have any questions

Step 4: Obtain Your Federal Employer Identification Number

Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.

To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.

TIP: We will obtain your EIN for you if you we form your company.

Step 5: Open Company Bank and Credit Accounts

To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).

Top 5 Major Banks in Alaska

• Wells Fargo Bank
• First National Bank Alaska
• KeyBank
• Northrim Bank
• First Bank

Click here to view a list of our recommended banks in our Vendor Network.

TIP: Our business formation service includes a free banking resolution for your use.

Step 6: Set-up An Accounting System

Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.

Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.

Review our list of Accountants, Accounting Software and Bookkeepers in our Vendor Network.

Step 7: Obtain Licenses and Permits

Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).

TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.

Step 8: Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.

Review our list of recommended Payroll Providers in our Vendor Network.

Step 9: Obtain Business Insurance

There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.

Click here to view our list of insurance providers in our Vendor Network.

Step 10: Systemize and Organize

Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.

Step 11: Branding and Marketing

Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.

Step 12: Annual and Ongoing Requirements

DBA: Your Fictitious Business Name should be valid for 5 years (unless you change company name or other information listed on the FBN) at which point you’ll need to renew it with the county.

LLC: Alaska corporations are required to file a Periodic Report with the Alaska Secretary of State every year on or before January 1, in addition to general taxation. Information on your business’ taxes can be found here.

Corporation: Business in Alaska should file a report once every two years on or before January 1 with the Secretary of State of Alaska. LLCs and Corporations will pay a filing cost of $100.

Click here to view our MyCompanyWorks Premium™ service which can automate most or your ongoing compliance tasks.

Important Alaska Contacts

Alaska Secretary of State

Division of Corporations, Business and Professional Licensing (for Corporation and LLC filings)
333 Willoughby AVE, 9th FL
State Office Building
Juneau, AK 99801-1770
Phone: (907) 465-2550

Alaska Taxation Departments

• Alaska Department of Revenue – Tax Division

Alaska Labor and Employment Departments

• Alaska Department of Labor and Workforce Development
• Employment and Training Services

Alaska Startup Resources

1. Small Business Administration (SBA) Alaska District Offices

• Alaska District Office

2. SCORE Alaska

• The Alaska SCORE Organization provides free and confidential one-on-one business counseling.

3. Alaska Legal Statutes

• Alaska Business Corporations Act – note this is the broad code that includes various other topics including business corporation.
• Alaska Revised Limited Liability Company Act – the specific act that applies to Alaska LLC’s.
• Alaska Regulations on Professional Licensing – this includes regulations on Alaska’s professions and businesses.

4. Alaska Chambers of Commerce

• Alaska State Chamber of Commerce
• Cordova Chamber of Commerce
• Anchorage Chamber of Commerce
• Delta Chamber of Commerce

5. Alaska PTAC

• The Alaska PTAC was established in 1986 as part of the Procurement Technical Assistance Program (PTAP) created by the U.S. Department of Defense. A member of the national Association of Procurement Technical Assistance Centers (APTAC), the Alaska PTAC provides businesses with the training and tools needed to compete and perform successfully on federal, state, and local government contracts.

6. Alaska Angel Investors

• List of Angel Investors in Alaska

7. Alaska Business News

• Alaska Business Monthly
• Alaska Journal
• Anchorage Daily News

8. DED

• The Division of Economic Development (DED) supports the growth and diversification of Alaska’s economy through business assistance, financing, promotion, and public policy. The division works closely with industry leaders, allied agencies, and economic development organizations across the state, including the 10 state designated Alaska Regional Development Organizations.

9. Alaska Small Business Development Center (SBDC)

• The Alaska Small Business Development Center provides business guidance, services and resources to Alaskan entrepreneurs

10. Adventure Green Alaska

• AGA is a voluntary certification program for tourism businesses operating in Alaska that meet standards of economic, environmental and social sustainability.