How to Start a Business in Alaska
Alaska Business Facts
Between its geographical advantages, strategic location, as well as strong brand, Alaska is a growing force in the global economy. It is estimated that 86% of economic growth in Alaska will transpire in foreign markets. Alaska is home to the country’s second-largest hub for air cargo commerce as well as international trade between the United States and Asia, and the fifth-largest airport in the world when it comes to cargo throughput, the Alaska International Airport System works aggressively to enhance investments from in-state, national, as well as international air-cargo and aviation based industries.
Major Companies Headquartered in Alaska
Alaska is the headquarters of many major companies including Farmers Loop Food Court, Bristol Bay Native, Chugach Alaska, Afognak, and Anchorage School District.
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 Corporation, LLC or DBA. Click here to learn more about business entities.
- A Corporation is a separate entity (provides liability protection to the owners) with a structure that includes shareholders, directors and officers. It’s 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 and provides very easy management (doesn’t require directors or officers) and taxation. The LLC 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.
- 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.
Step 2: Choose 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 LLC’s”) 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
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.
- Tip: Check our order form to see how long Alaska is currently taking to process regular and expedited orders.
- A Registered Agent is required for every Alaska Corporations and LLC. The chosen registered agent must have a physical street address in Alaska. 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.
Step 4: Obtain your Federal Employer Identification Number (FEIN or “EIN”)
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.
You can read more about corporate tax laws in Alaska on the Alaska Department of Revenue Taxation Division site.
Optional Considerations when registering a Alaska business
- Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).
Ready to register a business in Alaska?
- We specialize in registering businesses in Alaska.
Step 5: Open Company Accounts: Bank and Credit Cards
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
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Obtain Business 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 7: 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.
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 Labor and Employment Departments
Alaska Startup Resources
1. Small Business Administration (SBA) Alaska District Offices
2. SCORE Alaska
3. Alaska Legal Statutes
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. Angel.co Alaska Startups
- A list of all 80+ Alaska Startups and 4,700+ Alaska angel investors registered with Angel.co. Good research resource.
7. Alaska Business 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)
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.
