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Incorporate in Alaska
Is Alaska a good state to form a small business?
FREE business incorporation, including registered state agent
Just pay state fees, order in 5 minutes or less
Alaska’s beautiful landscapes, plentiful natural resources, and community-oriented business culture make it a tempting location for many aspiring small business owners.
Before deciding to start your business in Alaska, it can help to view the current business demographics and see who is finding success.
Alaska is home to many small businesses from many different industries. As of 2023, 99.1% of all companies run in Alaska are small businesses.
Women own a large portion of the businesses in Alaska at 26,384 and co-own 4,937 businesses. While this is slightly less than the 40,123 male-owned businesses, women successfully run various companies in Alaska. Because of this, Alaska is one of the best business-friendly states for women.
Veterans own 6,998 businesses and co-own 1,184 with non-veterans in Alaska, a small amount compared to the 63,562 owned by non-veterans. Veterans can form a dedicated customer base thanks to their past experiences and skills.
Hispanic people own 3,036 businesses in Alaska, while non-Hispanic people own 68,119. The number of Hispanic-owned companies continues to grow each year.
Racial minorities own 16,153 and co-own 910 businesses in Alaska. This amount is an impressive increase from the 11,776 firms owned in 2022.
See the full range of features, benefits, and pricing tailored to your needs.
Incorporate in Alaska with MaxFilingsWhy incorporate in Alaska?
Alaska’s smaller population and more remote location can make it a little more challenging for new business owners to start a business properly. The harsh weather can also make operating a business more difficult through shipping delays and an increased cost of utilities. Despite these shortcomings, there are some significant benefits to incorporating in Alaska:
Easier access to capital
Incorporated businesses often have more access to loaners and investors than sole proprietorships or partnerships. These support resources help expand the company and cover business operation expenses.
Tax benefits
Business owners are allowed extra tax benefits by choosing to incorporate their company. Because the IRS does not view LLCs as taxable entities, the LLCs must decide to be taxed as a partnership, corporation, or a disregarded entity. This choice gives them the benefit of potentially saving on taxes.
Another benefit of incorporation is that Alaska does not have a state income tax, meaning businesses incorporated in Alaska can save money on taxes. Alaska also has no statewide sales tax, giving a significant advantage to companies that sell goods or services within the state. However, some local governments may require that you pay a sales tax.
Strong limited liability protection
Alaska’s laws prevent LLC owners from being fully liable for the shortcomings of the business. If your company faces lawsuits, legal trouble, debt, or damages in the future, your money and belongings will be safe.
Better public perception
Incorporating a business can make it appear more professional in the eyes of the public. This reputation will make it a more trustworthy option for potential customers.
Many business opportunities
Alaska offers many business opportunities and resources, particularly for industries like mining, fishing, and energy production.
The state provides various programs and incentives to support local businesses:
- The Alaska Grown program highlights locally grown agricultural products
- The Made In Alaska label recognizes and promotes products manufactured or crafted within the state.
- The Alaska Product Preference Program prioritizes in-state businesses in government contracts.
- The ARDOR Program helps foster economic development through local partnerships.
These four programs can be especially helpful for newly incorporated businesses in Alaska looking to grow and thrive.
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Business tax climate info stats
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|---|---|---|---|---|---|
| 3 | 0 | 9.4% | 0 | 7.85% | 1.82% |
| Overall rank | No individual income tax | Corporate income tax rate | No state sales tax rate | Maximum local sales tax rate | Combined state & average local sales tax rate |
Overview of business structures in Alaska
Business structure |
Management |
Liabilities |
Taxes |
|---|---|---|---|
| Sole proprietorship | One owner | Personal liability for business and debts | Taxed at personal tax rate or self-employment taxes |
| Partnership | Two or more owners | Partners are liable for debts and liabilities (Excluding limited partners) | Partners taxes separately on their share of the business income |
| LLC | At least one member, with or without a manager | Limited liabilities for financial contributions | Depends on the LLC’s chosen tax method |
| S-corp | Depends on how the business owners choose to be taxed | Limited liability on investments | No federal income tax Shareholders pay taxes based on their share of the business’s income or losses |
| C-corp | Depends on how the business owners choose to be taxed | Limited liability on investments | Taxed through corporation |
| Nonprofit | At least seven owners, including the president, vice-president, treasurer, secretary, and three directors The home state’s regulations determine foreign nonprofit management |
Officers and directors have no liability for the company | Tax-exempt status granted by the IRS |
Start a business in Alaska
What are the advantages and potential challenges of incorporating in Alaska? This guide provides the information you need to make a well-informed choice for your business.
Alaska C Corp Formation
Learn everything you need to know about setting up a C corporation in Alaska. This guide will show the benefits of this business structure and help you start creating your own.
Alaska S Corp Formation
Incorporate an S corporation in Alaska. Discover the unique aspects, benefits, and processes related to Alaska’s S corporations.
Alaska LLC
Formation
Learn the details of setting up a limited liability company in Alaska. This guide covers the critical steps to forming an LLC, including benefits and required paperwork.
Alaska Nonprofit Formation
Our Alaska nonprofit guide provides a clear path to incorporating your nonprofit, ensuring you meet state and federal requirements to get your organization up and running.
There are no upfront fees. Our package starts at $0 + your state fee. Plus one free year of registered agent.
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